ACC30009 Analysis For Competitive Advantage- Fashion Industry Prospect

ACC30009 Analysis For Competitive Advantage- Fashion Industry Prospect

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ACC30009 Analysis for Competitive Advantage

Task

Case Study 1A: Meaty Delights’ Chick-bacon Dilemma

1. Maxie is convinced that Angus’ activity-based cost for Chick-bacon is wrong. Calculate the cost per pack of Chick-bacon under the existing absorption costing system. Identify the likely causes of the difference between the absorption cost and the activity-based cost per unit and explain to Maxie why the absorption cost is likely to be wrong. (Limit: 150 words)

2. Briefly discuss three possible reasons why Superior Meats may be able to sell Chick-bacon at a cheaper price over the longer term. (Limit: 100 words)

3. What target cost would Meaty Delights have to set for its Chick-bacon if it wishes to match Superior Meats’ price and maintain its existing markup?

4. Scrutinise the activities included in the bill of activities collected by Angus and identify six candidates for elimination as non-value activities. For each of the activities identified, explain why you consider them to be non-value-added and suggest possible root cause cost drivers. (Limit: 300 words)

5. Explain why Meaty Delights might benefit from business process re-engineering or process improvement to eliminate its non-value added activities. (Limit: 100 words)

6. What will be the activity-based cost per unit in the subsequent period if Meaty Delights has been able to reduce the cost of the following activities by 25 percent:

7. Assuming the activity-based costs calculated after the 25 percent reduction in costs is achieved, will Meaty Delights be able to add its 40 percent markup and compete effectively with Superior Meats? What would you recommend? (Limit: 100 words)

Case Study 1B: Meaty Delights’ Fashion Industry Prospect

1. Maxie asked Angus to analyse the information provided by Moore. Taking Angus’ position, present a segment profitability statement for the Southeastern Division, and for the Melbourne, Chadstone and Frankston stores. What is your recommendation to Maxie about the viability of acquiring E&E’s Victoria Region? (Recommendation Limit: 100 words)

2. Discuss the impact of the responsibility accounting system and bonus structure on the manager’s behaviour, and also the effect of their behaviour on the financial results for the Melbourne store and the Chadstone store. (Limit: 250 words)

3. On further conversations with Moore, Minnie discovered that the assistant financial controller for the Victoria region, George Buddy, is a close friend of the Melbourne manager for over 20 years. When Buddy realised that the Melbourne store manager had really gone overboard with advertising commitments, he reclassified $50,000 of advertising expenditures as miscellaneous expenses and buried them in rent and other costs. Minnie believes this action is unethical. Do you agree? Discuss the ethical issues surrounding Buddy’s action. (Limit: 250 words)

Case Study 2: Eco-Nappies Company and Naplers disposable nappies

1. Put yourself in the position of the team leader of the SustainO’Earth project team that must recommend one type of nappy over the other.

a) Are ALL the assumptions correct including those pertaining to nappy economics? Discuss. Based on the data provided, which type of nappy would you recommend? (Limit: 400 words)

b) Do the health and economic data change or influence your decision? Should they? Explain. (Limit: 300 words)

2. Eco-Nappies Company was recently rated the most “environmentally conscious” company in an Advertising Age survey and yet, the state government has proposed a ban (albeit unsuccessful) on disposable nappies. What, if any, action should you take if you are the vice president of the nappy division at Eco-Nappies? (Limit: 300 words)

ACC30009 Analysis for Competitive Advantage

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Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.

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