Case Scenario

Jingles LLC, manufacturers of various range of Building materials, manufacturing unit is based in Sohar with a capital investment of RO 10 Million and a total of 1000 employees .

The Financial statement of Jingles company has shown the continuous growth in the sales revenue in the last five years, but growth in the profit is less as compare to the increase in the sales revenue. The companys total sales are based on cash and credit.

Over the last five years Companys overall liquidity and profitability position has been adversely affected due to the increase in the receivables and closing inventory.

Company has appointed you as a trainee Management accountant and asked you to stress on implementing the different cost accounting systems, to improve the overall liquidity, profitability position of the company and measures for efficient receivables and Inventory management.

Due to increase in demand for building materials among construction industry and other potential domestic customers, company expects a good rise in sales units and increase in production in two main quality category as Gold X01 and Silver Y02 during the first six months of financial year ending 30th June 2020. Gold X01 is manufactured in Division A of manufacturing unit and Silver Y02 is manufactured in Division B of manufacturing unit.

Assessment Criteria Pass Merit Distinction LOI Demonstrate an understanding of management accounting systems To achieve : and an P1 M1 D1 Explain management Evaluate the benefits of Critically evaluate how accounting and give the management accounting management accounting essential requirements of systems and their application systems management different types of management within organisational accounting reporting is accounting systems. context. integrated within organisational processes. P2 Explain different methods used for management accounting reporting The following costs are estimated for two series of building materials for six months ending 30th June 2020 Building Material Division A Division B Gold Xoi Silver YO2 R.O. RO Material cost per unit SO 40 Labour cost per unit 25 20 Finishing cost per unit 15 15 Distribution cost per unit 5 Inspection cost per unit 2 2 Depreciation on Machinery per year 3500 2500 Rent of the Factory per month 1500 1500 Interest cost Per annum 2000 1500 Electricity and water bills per quarter 1500 2000 Staff salary per month 2500 2000 Marketing cost per year 4000 5000 Insurance cost per Quarter 1,000 750 Additional information: 1. Manufacturing department has planned to produce 3000 units of 'Gold X01'& *2,500 units of Silver YO2. The company's pricing policy is based on Full cost + 10% for Gold X01and Full cost + 15% for Silver YO2? As a trainee Management Accountant, you will be attending the meeting where you prepare and present a report on the above points. during the meeting, you are required to critically evaluate how Management Accounting Systems and Management Accounting Reporting is integrated within Jingles. (For details refer to Grades given in page 2)