How to find 5 cost objects or activities for a food manufacturing company? Explain why these cost objects are critical for a food manufacturing company's success.

COST AND MANAGEMENT ACCOUNTING PAT 0075 Trimester 3, Session 2015/2016 GROUP ASSIGNMENT Instructions: 1) This is a group assignment with each group not exceeding 5 students 2) The selection of company will be determined by the respective lecturer 3) Use standard A4 size white paper with Times New Roman font and size 12 4) Line spacing (1.5 lines); 2.54 cm margin 5) Each page (except cover) must be numbered and justified 6) The deadline for submission is on or before 9/5/2016 by 5 p.m. (Monday, week 6) QUESTION You are the Chief Financial Officer for one of the following companies: a) Clothing manufacturer b) Plastic or glove manufacturer c) Food manufacturer d) Health and beauty product manufacturer e) Electrical product manufacturer f) Sports equipment manufacturer g) Restaurant company h) Education company i) Banking company j) Telecommunication company k) Cleaning service company l) Security company Managing the company's numerous costs is critically important in this competitive industry. Therefore, one of the major tasks is deciding which costs to manage in order to achieve the company's profitability targets. In other words, you must identify the most important cost objects to track, measure and control. REQUIRED 1) Explain the meaning of cost object (5 marks) 2) Describe the general business activities of the company. (5 marks) 3) Identify 5 cost objects or activities that are critical to the company's success. A cost object is any item such as product, customer, department, project, geographical area, plant, course and so on. marks) (5 4) Identify 20 possible cost related to any one of the cost object selected in number 3. Group the cost into the following category (choose only the category that is applicable to your company). Each possible cost can be grouped into more than one category. a) b) c) d) Direct costs Indirect costs Variable cost Fixed costs (20 marks) 5) Clearly explain why the cost objects or activities answered in number 3 are critical to the company's success. (25 marks) [TOTAL 60 MARKS] Grading Rubrics for Assignment Question: Q1 Introduction: Explain the meaning of cost object weightage: 1 Q2 Q3 Content: Describe the general business activities for the company weightage: 1 Content Identify 5 cost objects that are critical to the company' success (5) Clear and detailed explanation of the meaning of cost objects with some examples. Clear and detailed explanation of general business activities the company Manage to identify 5 cost objects that are critical to the company' success (4) Clear and adequate explanation of the meaning of cost objects with some examples. Clear and adequate explanation of general business activities for the company Manage to identify 4 cost objects that are critical to the company' success (3) Clear but brief explanation of the meaning of cost objects with some examples. Clear but brief explanation of general business activities for the company Manage to identify 3 cost objects that are critical to the company' success (2) Unclear explanation of the meaning of cost objects with some examples. (1/0) No introduction or no explanation of the meaning cost objects Unclear explanation of general business activities for the company No explanation of general business activities for the company Manage to identify 2 cost objects that are critical to the company' success Manage to identify 1 or none cost objects that are critical to the company' success weightage: 1 Q4 correctly. correctly. correctly. correctly. correctly. Identify 20 possible cost related to any one of the cost object and their category Provide between 1720 correct cost items and categories Provide between 1316 correct cost items and categories Provide between 912 correct cost items and categories Provide between 5-8 correct cost items and categories Provide between 1-4 correct cost items and categories Guideline: Correct cost: marks Correct category: marks Guideline: Correct cost: marks Correct category: marks Guideline: Correct cost: marks Correct category: marks Guideline: Correct cost: marks Correct category: marks Guideline: Correct cost: marks Correct category: marks Clear and detailed explanation why the cost objects or activities chosen are critical to the company's success. Clear and adequate explanation why the cost objects or activities chosen are critical to the company's success. Clear but brief explanation why the cost objects or activities chosen are critical to the company's success. Unclear explanation why the cost objects or activities chosen are critical to the company's success. No explanation why the cost objects or activities chosen are critical to the company's success. weightage: 4 Q5 Clearly explain why the cost objects or activities are critical to the company's success. weightage: 5 [TOTAL 60 MARKS] APPENDIX COVER PAGE TEMPLATE PAT 0075 COST AND MANAGEMENT ACCOUNTING Trimester 3, 2015/2016 Lecture Session: LJ03 Faculty of Business Date: 9 May 2016 Lecturer: Madam Teo Kim Mui Prepared by: Student ID 1. 2. 3. 4. 5. 1151101520 1151101434 1151101466 1151100954 1151100468 Student Name SIM SONG ERN CHIA QI HAO LIEW KAI SIANG NG SHU YING CHAM MEI LIN Declaration by group leader (This section is to be filled in the student's own handwriting.) I hereby declare that all group members' names are correctly included in the above section. I hold a copy of this assignment which I can produce if the original is lost or damaged. I certify that no part of this assignment has been copied from any other student's work or from any other source except where due acknowledgement is made in the assignment. Group leader's signature : _____________________________ Group leader's name : _____________________________ Group leader's student ID : _____________________________ Date : _____________________________ Group member's declaration (Each group member, including the group leader, must individually fill up and submit this form, in the student's own handwriting. This form is to be inserted in the final submission.) For the purpose of completing this assignment, I have performed the following tasks (please list): I hereby declare that I have assessed the final submission and I take full responsibility should there be any inaccuracies, incompleteness, omissions, delays or non-submission. Group member's signature : ________________________________ Group member's name : ________________________________ Group member's ID : ________________________________ Date : ________________________________