Higher Nationals
Assignment Brief - BTEC (RQF)
Higher National Diploma in Business

Unit Title - Unit 5: Management Accounting
H/508/0489
level 4
credit value 15 credits

University Center Colchester

Assignment Title - Management accounting systems and techniques

Learning Outcomes:

LO1 Demonstrate an understanding of management accounting systems

LO2 Apply a range of management accounting techniques

Assignment Brief and Guidance:

Question 1. Define management accounting and discuss the role of a management accountant in an organisation

Question 2. Demonstrate in detail the scope of the role of management accounting and the part it plays within each function of the business

Question 3. Examine the key differences between a management accountant and financial accountant whilst at the same time exploring any areas where the two disciplines may overlap.

Question 4. Examine the different types of cost reports that are produced in management accounting, highlighting the differences between each type of cost reporting and evaluating the benefits of each report.

Explore other types of reports that may be produced by management accountants and evaluate the benefitsto a business of these different types of report, including adding value to the organisation and how these feed into the achievement of organisational objectives.

Please include in your discussion:
• Job costing
• Batch Costing
• Inventory Costing (make sure you discuss methods to reduce cost of stock)
• Activity based costing (make sure this includes direct, indirect, fixed and semi variable costing)

Question 5. Calculateand produce an income statement using both marginal and absorption costing techniques using figures of your own making. Provide a written text to explain why an organisation may use one technique over another.

Question 6. Produce a worked example of how break-even analysis works and provide a written explanation as to why break-even analysis is important to the organisation.

Question 7. Show a worked example of net profit calculation and provide an explanationas to why net profit calculation is important to role of the management accountant and how this calculation is used within the organisation to drive other organisational objectives. For example, investment decisions.