PLZ HELP
Scenario: Golden Casket are a family owned, family run, confectionery manufacturer based in Greenock, Scotland. Douglas Rae OBE formed the Golden Casket (Greenock) Ltd company in 1959. The company has since grown to become one of the largest confectionery manufacturers in Scotland with family values still being at the core. Our values are traditional with a great attention paid to keeping the taste and quality consistent and having excellent customer service. The Golden Casket is home to many well-known brands, including Millions, Buchanan's, Onepounders, Gibb, Hills of Hawick, Fudgy Wudgy and Gila. The mix of old and new brands under the Golden Casket umbrella are the perfect ingredients to ensure the company will keep growing for years to come. More information regarding the company can be found at the below mentioned weblink: https://goldencasket.co.uk/ Golden Casket decided to manufacture and sell two similar products called Min-Choc and Diet- Choc. All products are priced by adding a 25% mark-up on cost to obtain the selling price. The management has the following information about their products: Applicable to its products: Total Overheads = 100,000 Total machine Hours = 50,000 hrs Diet-Choc Product Boxes of Production Material Cost/box Labour Cost/box Machine Hrs/box Min-Choc 1000 35 21 2 6000 55 17 8 After interviewing all the important people of the organization you have apportioned the overhead costs as per below: % Overheads Set up Costs 20 Inspections 20 Materials Handling 60 Cost Pools are as follows: Min-Choc Diet-Choc Total Set ups Inspections Goods Movements 200 350 200 170 350 800 370 700 1000 The financial director of Golden Casket is considering using activity based costing instead of traditional absorption costing. But he is unsure exactly what would be involved. He is also determined to keep costs to a minimum and does not want any new system to involve a lot of extra work or expenditure. List alternative Management Accounting (costing) techniques available for Golden Casket (5 marks) and define each of them using academic references (10 marks). Critically evaluate Absorption Cost technique and Activity Based Costing techniques for Golden Casket. (20 Marks) Using the Numerical information provided in the scenario demonstrate a detailed knowledge of the main technical procedures (calculation) used in Management Accounting. - (20 marks) Advice on whether ABC is viable for Golden Casket, given the financial directors concerns. Scenario: Golden Casket are a family owned, family run, confectionery manufacturer based in Greenock, Scotland. Douglas Rae OBE formed the Golden Casket (Greenock) Ltd company in 1959. The company has since grown to become one of the largest confectionery manufacturers in Scotland with family values still being at the core. Our values are traditional with a great attention paid to keeping the taste and quality consistent and having excellent customer service. The Golden Casket is home to many well-known brands, including Millions, Buchanan's, Onepounders, Gibb, Hills of Hawick, Fudgy Wudgy and Gila. The mix of old and new brands under the Golden Casket umbrella are the perfect ingredients to ensure the company will keep growing for years to come. More information regarding the company can be found at the below mentioned weblink: https://goldencasket.co.uk/ Golden Casket decided to manufacture and sell two similar products called Min-Choc and Diet- Choc. All products are priced by adding a 25% mark-up on cost to obtain the selling price. The management has the following information about their products: Applicable to its products: Total Overheads = 100,000 Total machine Hours = 50,000 hrs Diet-Choc Product Boxes of Production Material Cost/box Labour Cost/box Machine Hrs/box Min-Choc 1000 35 21 2 6000 55 17 8 After interviewing all the important people of the organization you have apportioned the overhead costs as per below: % Overheads Set up Costs 20 Inspections 20 Materials Handling 60 Cost Pools are as follows: Min-Choc Diet-Choc Total Set ups Inspections Goods Movements 200 350 200 170 350 800 370 700 1000 The financial director of Golden Casket is considering using activity based costing instead of traditional absorption costing. But he is unsure exactly what would be involved. He is also determined to keep costs to a minimum and does not want any new system to involve a lot of extra work or expenditure. List alternative Management Accounting (costing) techniques available for Golden Casket (5 marks) and define each of them using academic references (10 marks). Critically evaluate Absorption Cost technique and Activity Based Costing techniques for Golden Casket. (20 Marks) Using the Numerical information provided in the scenario demonstrate a detailed knowledge of the main technical procedures (calculation) used in Management Accounting. - (20 marks) Advice on whether ABC is viable for Golden Casket, given the financial directors concerns
