Question 3.2 Discuss the relative performance of each supplier and recommend to the management which supplier/s to select for the Nelson Builders. (8 marks) [Word limit: 120 words. Note the word count at the end of your Answer] Your Answer [Insert rowslcolumns and expand the space as reguired): Question 3.3 Helen Brown, CFO of the company, has suggested that the company should Implement Just in Time (JIT) system for Inventory management. One of the senior management members, Rob Harrison, is sceptical about in implementation and raised several questions such as: how can the company save money ifthe order size is reduced and the number of orders delivered increased?; how does the risk of running down the inventory levels be managed?; and how will these changes Impact on the company's strategic priority oi product quality and customer satisfaction? Write a memo to the Senior Management responding to Mr Harrison's concern. Your responses should explain the rationale behind improving supplier relationships and the likely impact of introducing a JIT system in line with the company's strategic priority and the calculations above. (10 marks) [Word limit: 150 words. Note the word count at the end of your answer} Your Answer [expand the space as required}: Word count: === END OF QUESTIONS === Question 3: Managing Supplier's Performance (33 Marks) Nelson Builders is undertaking an analysis of supplier costs in order to evaluate the relative costs and performance of each supplier. For 2021, they have isolated a range of activities that are consumed by suppliers, identied activity drivers, and estimated the cost per unit of activity driver: ceeevevrvvevenvveeee-wvve Inspect order 5145 per delivery Return material to the supplier $105 per return Pay supplier $75 per invoice In 2021, the three major suppliers to the company consumed the following number of activities: m _ 5\" 125 The cost of material purchased from each supplier during 2021 was as follows: Supplier A $30,000 Supplier B Supplier C $50, 000 Required Required Question 3.1 Prepare a detailed suppliers' report showing costs of ownership and suppliers' performance index (SPI). (15 marks} Your Answer (Insert rows/columns and expand the space as required); Question 2.2 (22 marks) Pharasalia skincare Inc. has developed a new lotion that will help to improve skin ageing. Total sales of the lotion for the last year were $60,000,000. The following data have just been gathered on last year's quality- related costs. COST CATEGORY AMOUNT (S) Product recalls $625,000 Downtime due to defects 600,000 Warranty claims 420,000 Inspection of and testing of incoming materials 300,000 Product liability lawsuits 500,000 Process quality audits 350,000 Rework costs 480,000 Quality training 150,000 Process control monitoring 350,000 Transportation costs to fix customers' problems 375,000 Statistical process control 200,000 Waste 300,000 Net cost of scrap 650,000 Supplier certification 250,000 Reliability engineering 200,000 Returned products 380,000 Manufacturing Inspection 150,000 Re - ulrement: Question 2.2.1 Prepare a cost-of-quality report classifying costs into prevention, appraisal, Internal failure, and external failure. Also, show costs as a percentage of total costs and total sales. (14 marks) Your Answer {Insert rowslcolumns and expand the space as reguired): Question 2.2.2 Write a report to the management explaining the report you prepared and recommending the way forward for future actions. (8 marks) [Word limit: 120 words. Note the word count at the end of your Answer] Your Answer {Insert rowslcolumns and expand the space as reguired): Word count: Question 2: Managing costs [37 marks] Question 2.1 (15 marks) Easy Solutions limited manufactures electronic calculators. One of its top-selling calculators has a price of $50. Recently, a competitor entered the market and started offering a similar calculator at a price that is 20% below the $50 price of Easy Solutions. Company policy requires Easy Solutions to have a prot margin equal to 30% on sales of each of its products. Required: Question 2.1.1 What target cost would have to be set for the Easy Solutions calculator to remain competitive and still meet the target prot margin of the company? (5 marks) Your Answer [expand the space as reguired): Question 2.1.2 Hugh Taylor, the newly appointed clerical assistant, thinks that the current cost of the calculator and its existing capabilities is not appropriate to achieve the target cost. Explain to Mr Taylor and the management how the company could apply the principles of product life cycle management and value engineering to achieve the target cost. (10 marks) [Word limit: 150 words. Note the word count at the end of your answer] Your Answer {expand the space as reguired): Word counts: Question 1: Strategic Management Accounting [30 marks] Question 1.1 Strategic management accounting provides information to protect an organisation's strategic position and determine strategies to improve its future competitiveness. To have strategic value, management accounting information (MAI) must help accomplish key strategic objectives related to quality, cost, and time. At the same time, MAI must have the technical, behavioural, and cultural attributes necessary to help achieve the strategic goals. Discuss the statement with suitable examples. Your discussion should include the inter-relationship between the strategic purpose and the desired attributes of management accounting Information. [Word limit: 225 words. Note the word count at the end of your answer] (15 marks) Your Answer (expand the space as reguiredl: Word counts: Question 1.2 Management accounting systems should be tailored to the organisation's or Its managers' needs. While there are many management accounting systems, researchers have used different theories to understand the general principles that influence the design of management accounting systems. Choose two relevant theories and discuss the factors that may influence management accounting system design according to these two theories. You may use examples to elaborate each theory of your choice. {Word limit: 225 words. Note the word count at the end of your answer] (15 marks) Your Answer {expand the space as reguiredi: Word counts