Advanced Management Accounting 11219, Semester 1, 2021

Case Study Assignment - Weighting Percentage = 20% (total overall marks for the case study-

100)

Due Monday 12

th

April 2021 by 23.00 - See unit outline for further information

Case: Houston Fearless 76, Inc. pp 78 - 85 of textbook

(Merchant & Van der Stede.

Management Control Systems: Performance Measurement, Evaluation and Incentives. Fourth

Edition, Pearson).

2. Discuss the management accounting and control systems used for Houston Fearless 76,

Inc. As part of your answer to this question:

Describe the various management accounting controls used at Houston Fearless

76, Inc. Make sure that you classify the management accounting controls using

terms provided in chapters 1, 2 & 3 of the textbook - i.e. results (specify the

type of results), action (there are many types e.g. pre-action review),

personnel/cultural controls (there are many types e.g. selection and placement)

and rewards/incentives used (what are the rewards? How are they linked to

actions or results?).

(15 marks)

Discuss the control problems that could be faced by Houston Fearless 76, Inc.

in terms of control system costs (use terms provided in chapters 5 of the

textbook - i.e gamesmanship, negative attitude)

(10 marks)

Discuss the strengths and weaknesses of the management control systems of

Houston Fearless 76, Inc.?

(10 marks)

3. Critically analyse whether the proposed incentive plan can improve any current

management control problems (in terms of results, actions and personal/cultural

controls) that Houston Fearless 76, Inc. faced. What recommendations would you

suggest management make about the new incentive plan to improve their control

strategy, if anything?

(30 marks)