This documents for Coventry styles for the posed to thirties or posted on any website yang ned work for the module and should not be eded to Faculty of Business and Law Assignment Brief Mode C and Q Regulations Module Title: Accounting for Business Module Code: 289ACC Richard Pennington Assignment CW2 Number Assignment Title Business Accounting Case Study Assignment SOX Weighting Module Leader: Release Date: 26/10/20 30/11/20 18.00 Submission Date/Time: Submission Time and Place: Submission through Turnitin ONLY Assessment Information This assignment is an individual assignment Criteria for Assessment This assignment is designed to assess the following learning outcomes 2. Apply numeracy skills and qualitative judgment to and financial decision making 3. Understand apply and evaluate management accounting concepts and techniques in decision making This assignment requires you to complete the following tasks You have just started a new job as general manager of Vardy Virtual Views Ltd a UK-based company whose principal activity is the manufacture of digital video equipment, which it distributes to retailers. The last few years have been very difficult for the company and it has survived through the support of its parent company, to whom it currently owes a significant ditt. However, the company now intends to engage in a number of income generating cost saving and efficiency measures in order to improve its financial performance. Although these may increase costs in the short-term, management hope they will enhance awareness of the company's products, increase sales and reduce costs and return the company to profitability. Atter discussions with a number of senior managers at Vandy Virtual Viewing Ltd, you have concluded that the current budgeting system is not operating effectively and you believe it requires significant reform You have carried out some background research on a number of matters and developments at Vardy Virtual Viewing Ltd and have obtained the following documents passed to third parties er posted on any website. Any itements of the should be reported to Document 1 - The Chair of the Board of Vardy Virtual Viewing lad recently attended a conference at which beyond budgeting principles were discussed, and believes it would help to improve the financial performance of the company. She has asked you to look into this further and you have obtained the following articles on the application of "beyond budgeting in the UK and beyond. Morlidge, S. (2008). Life Beyond Budgets? An implementation Story Beyond Budgeting at Unilever. n Seminar Dynamic Business Performance Management (pp. 181-193) stergren, K. & Stensaker. 1. (2011). Management control without budgets: a field study of beyond budgeting In practice. European Accounting Review.2011. 149-181. Agent Template Page 2013 This documents for Coventry University students for their own wie in completing their assessed work for the module and should not be pared to third parties ar posted on any website. Any infringements of this rule should be reported to screefloventry Document 2-New product line Vardy Virtual Viewing Ltd are considering changing one of their main production processes. If the process at one of their touch screen production plants is implemented, it will have a significant impact on the cost structure of one of their most popular lines of virtual reality headsets. Information relevant to this decision is given in the following table: Current process New process Sales price (per headset) 450,00 450,00 Direct materials cost (per headset) 225.00 225.00 Direct tabour cost per headset) 90,00 Fived manufacturing overheads E120,000 240,000 Fixed administrative overheads E100,000 $80,000 Fixed selling and distribution overheads E155,000 E155,000 Break even point headsets) 2,778 2.879 Margin of safety at budgeted profit level 62% 56 Unit sales required to achieve budgeted profit of 600,000 (headsets 7,223 6,516 In addition the following profit volume chart has been produced 60.00 Profit volume chart 1,000,000 800,000 -Current process profils New process profit/floss 600,000 400,000 Profit/(loss) 200,000 ED 1.000 1000 4.000 5.000 6,000 7.000 R.000 -200,000 -400,000 -600,000 Output and sales (units) Asimetrie Template Page 3 of 13 This documents for Coventry University students for the one in conting the work for me and should be pued to third parties or posted on any website. Any infringements of this rule hould be reported to Document 3 - Cash budget Vardy Virtual Viewing Ltd's Finance Department has prepared the following cash budget and budgeted income statement for the first 3 months of the 2021/22 budget year, a period in which the company is expected to return to profit. Cash budget January February March 10,056 (13,8601 (58.499 544,855 1.250,000 1,804,855 554,580 1,273,145 1,827,725 569415 1,297,222 1,867,137 Opening balance RECEIPTS: Cash sales Credit sales Total receipts PAYMENTS: Materials cash purchases Materials credit purchases Operating expenses Fixed overheads Production labour Administration costs Total payments: Net cash flow Balance / 1571,6991 1235.668) (288,368) (243,7001 (313,955 (175,380) (1,828,7701 (23,916) (13,8601 (598 9221 (229,0001 (223,457) (299,9031 (310.339) (243.7001 (243,7001 (321.952) (330,0 (178,888 (176.991) (1.872,365) (1.911.024) 144.6401 158,499) (103,187) Budgeted income statement January February March Sales Cost of sales Gross profit 1,818,000 1852,302 1.903,755 1.060,500) (1.080.509 1.110 524) 757,500 771,792 793,231 Operating expenses Foed overheads Administration costs Total expenses (299,903) 285,8731 (175,380) 1761,156) (310.3391 (285,873) (178,8RR (775, 1001 (319.533) (285.8733 (276,991) (782,398) Operating profit/loss) (3,656) 12.307) 10,833 The following information is relevant to the cash budget: 1. Credit Customers are allowed one month's credit on sale 2. Credit suppliers allow one month credit on raw materials purchases 3. Materials and production labour costs are included in the cost of sales in the budgeted income statement Agent Brief Template This documents for Coventry styles for the posed to thirties or posted on any website yang ned work for the module and should not be eded to Faculty of Business and Law Assignment Brief Mode C and Q Regulations Module Title: Accounting for Business Module Code: 289ACC Richard Pennington Assignment CW2 Number Assignment Title Business Accounting Case Study Assignment SOX Weighting Module Leader: Release Date: 26/10/20 30/11/20 18.00 Submission Date/Time: Submission Time and Place: Submission through Turnitin ONLY Assessment Information This assignment is an individual assignment Criteria for Assessment This assignment is designed to assess the following learning outcomes 2. Apply numeracy skills and qualitative judgment to and financial decision making 3. Understand apply and evaluate management accounting concepts and techniques in decision making This assignment requires you to complete the following tasks You have just started a new job as general manager of Vardy Virtual Views Ltd a UK-based company whose principal activity is the manufacture of digital video equipment, which it distributes to retailers. The last few years have been very difficult for the company and it has survived through the support of its parent company, to whom it currently owes a significant ditt. However, the company now intends to engage in a number of income generating cost saving and efficiency measures in order to improve its financial performance. Although these may increase costs in the short-term, management hope they will enhance awareness of the company's products, increase sales and reduce costs and return the company to profitability. Atter discussions with a number of senior managers at Vandy Virtual Viewing Ltd, you have concluded that the current budgeting system is not operating effectively and you believe it requires significant reform You have carried out some background research on a number of matters and developments at Vardy Virtual Viewing Ltd and have obtained the following documents passed to third parties er posted on any website. Any itements of the should be reported to Document 1 - The Chair of the Board of Vardy Virtual Viewing lad recently attended a conference at which beyond budgeting principles were discussed, and believes it would help to improve the financial performance of the company. She has asked you to look into this further and you have obtained the following articles on the application of "beyond budgeting in the UK and beyond. Morlidge, S. (2008). Life Beyond Budgets? An implementation Story Beyond Budgeting at Unilever. n Seminar Dynamic Business Performance Management (pp. 181-193) stergren, K. & Stensaker. 1. (2011). Management control without budgets: a field study of beyond budgeting In practice. European Accounting Review.2011. 149-181. Agent Template Page 2013 This documents for Coventry University students for their own wie in completing their assessed work for the module and should not be pared to third parties ar posted on any website. Any infringements of this rule should be reported to screefloventry Document 2-New product line Vardy Virtual Viewing Ltd are considering changing one of their main production processes. If the process at one of their touch screen production plants is implemented, it will have a significant impact on the cost structure of one of their most popular lines of virtual reality headsets. Information relevant to this decision is given in the following table: Current process New process Sales price (per headset) 450,00 450,00 Direct materials cost (per headset) 225.00 225.00 Direct tabour cost per headset) 90,00 Fived manufacturing overheads E120,000 240,000 Fixed administrative overheads E100,000 $80,000 Fixed selling and distribution overheads E155,000 E155,000 Break even point headsets) 2,778 2.879 Margin of safety at budgeted profit level 62% 56 Unit sales required to achieve budgeted profit of 600,000 (headsets 7,223 6,516 In addition the following profit volume chart has been produced 60.00 Profit volume chart 1,000,000 800,000 -Current process profils New process profit/floss 600,000 400,000 Profit/(loss) 200,000 ED 1.000 1000 4.000 5.000 6,000 7.000 R.000 -200,000 -400,000 -600,000 Output and sales (units) Asimetrie Template Page 3 of 13 This documents for Coventry University students for the one in conting the work for me and should be pued to third parties or posted on any website. Any infringements of this rule hould be reported to Document 3 - Cash budget Vardy Virtual Viewing Ltd's Finance Department has prepared the following cash budget and budgeted income statement for the first 3 months of the 2021/22 budget year, a period in which the company is expected to return to profit. Cash budget January February March 10,056 (13,8601 (58.499 544,855 1.250,000 1,804,855 554,580 1,273,145 1,827,725 569415 1,297,222 1,867,137 Opening balance RECEIPTS: Cash sales Credit sales Total receipts PAYMENTS: Materials cash purchases Materials credit purchases Operating expenses Fixed overheads Production labour Administration costs Total payments: Net cash flow Balance / 1571,6991 1235.668) (288,368) (243,7001 (313,955 (175,380) (1,828,7701 (23,916) (13,8601 (598 9221 (229,0001 (223,457) (299,9031 (310.339) (243.7001 (243,7001 (321.952) (330,0 (178,888 (176.991) (1.872,365) (1.911.024) 144.6401 158,499) (103,187) Budgeted income statement January February March Sales Cost of sales Gross profit 1,818,000 1852,302 1.903,755 1.060,500) (1.080.509 1.110 524) 757,500 771,792 793,231 Operating expenses Foed overheads Administration costs Total expenses (299,903) 285,8731 (175,380) 1761,156) (310.3391 (285,873) (178,8RR (775, 1001 (319.533) (285.8733 (276,991) (782,398) Operating profit/loss) (3,656) 12.307) 10,833 The following information is relevant to the cash budget: 1. Credit Customers are allowed one month's credit on sale 2. Credit suppliers allow one month credit on raw materials purchases 3. Materials and production labour costs are included in the cost of sales in the budgeted income statement Agent Brief Template
