Assignment – ACC203
1. Outline the advantages of implementing processes to determine organizational objectives, strategies and planning system
While concerning about the implementing process under the organization, it is determined that implementation is the process which turns the strategies and plans onto effective actions in respect to complete the strategic objectives, as well as goals of an organization. In addition, it is also essential to implement the strategic plans in an organization (Calder et al., 2016).
On the basis of this , it can be mentioned that a critical action plans can make a strategic plan from a document which is kept on the shelf to action which will drive the business growth. In this way, it is majorly found that companies have the strategic plans but usually they fail to implement them under the organization effectively.
Accordingly, an effective implementation process includes some important steps that need to be followed by the manager under the organization. In this way, these steps are as follows:
- Describe the strategy framework
- Build the plan
- Define KPIs
- Establish the strategy rhythm
- Implement strategy reporting
- Link performance to strategy
Thus, by adopting these steps, Ralph Slick will be capable to implement the changes as per the requirement of the potential customers. At the same time, it is also found that this implementation process has number of advantages that provides the helps to the organization in respect to determine the organizational objectives, strategies as well as planning strategies. In this manner, these advantages are as follows:
- Improve business agility
It is essential to make the modification for an organization’s best practices in respect to stay update along with the changing conditions under the competitive market. In this, an efficient business process management allows the business manager to create pauses under its business processes, implement the procedure and re-execute it effectively.
- Reduced costs and higher revenues
In the concern of effective business process management, it is found that if the correct implementation of BPM is done under the organization, then it is easy for organization to trim down its production costs that is related to organizational production (Nousiainen et al., 2017).
- Higher efficiency
By implementing the business process, it enhances the organizational efficiency as per the requirement of the customers. At the same time, it is also beneficial to determine the organizational strategies that would be effective for it.
- Better visibility
With the help of implementation process, it is easy to find the better visibility about the organizational objectives and its different planning strategies. In this way, organizational manager can adopt the software in respect to implement the business process in order top get the more visibility about it.
2. Consider the nature of control system and the type of essential information for the manager and the managing director
In respect of nature of control system, it is determined that the nature of the control system should be the important management of organizational functions as under the case study, it is found that the products of Delicious Cakes Factory is old and they also do not offer the variety in its products that is the reason, he sales of the bakery has been reducing for the last 18 months (Devireddy et al., 2015).
In this way, it is important for Ralph Slick who is the manager of the business and the managing director that they should analyze the critical factors under the business related to the production as well as the sales. There is also need to adopt the effective implementation process in order to apply the important changes under the organization as per the requirement of the potential customers.
In addition, it is also determined that the main of the control system is to analyze the actual performance against the set standards or plans along with the view of making sure adequate progress (Rogulenko et al., 2016.).
In this it is important to collect the information in order to evaluate the performance of different organizational resources such as human, physical, financial and also the organization. So, as per the case, there is also need to gather the information related to customers so that their preferences and tastes can be determined under the organization.
1. A schedule of cost of goods manufactured
| Schedule of Cost of Goods Manufactured | ||
| Particular | Amount ($) | Amount ($) |
| Direct Material Used | ||
| Beg. Raw Material Inventory | 40000 | |
| Add: Direct Material Purchased | 460,000 | |
| Less: Ending Raw Material | -50,000 | |
| Direct Material Used in Production | 450,000 | |
| Direct Manufacturing labour | 300,000 | |
| Manufacturing Overhead: | ||
| Material Handling Costs | 70,000 | |
| Miscellaneous Indirect Manufacturing Labour | 40,000 | |
| Depreciation – Plant Equipment | 36,000 | |
| Lubricants and Coolants | 5,000 | |
| Insurance of Plant Equipments | 3,000 | |
| Plant Leasing Costs | 54,000 | |
| Total Manufacturing Costs | 508,000 | |
| Add: Beg. Work-In-Progress Inventory | 10,000 | |
| Less: Ending Work-In-Progress Inventory | -14,000 | |
| Total of Work-in-progress | -4,000 | |
| Cost of Goods Manufactured for the Year | 954,000 | |
2. A Schedule of costs of goods sold
| Schedule of Cost of Goods Sold | |
| Particular | Amount ($) |
| Add: Beg. Finished Goods Inventory | 100,000 |
| Cost of Goods Manufactured for the Year | 954,000 |
| Total Goods Available for Sale | 1,054,000 |
| Less: Ending Finished Goods Inventory | 150,000 |
| Cost of Goods Sold | 904,000 |
| Income Statement For the Year Ending 2018 | |||
| Particular | Amount ($) | Amount ($) | |
| Sales Revenue | 1,360,000 | ||
| Cost of Goods Sold | -904,000 | ||
| A | Gross Profit | 456,000 | |
| Operating Expenses: | |||
| Marketing Promotion | 60,000 | ||
| Marketing Salaries | 100,000 | ||
| Distribution Costs | 70,000 | ||
| Customer Service Costs | 100,000 | ||
| B | Total Selling Expenses | 330,000 | |
| Net Income (A-B) | 126,000 | ||
Analysis of physical flow of units:
In heating department of Karlene industries, on 1 November 2016, work in progress units were 1000 while during November and total production units to be started were 12000. So, total units to be produced were 13000 in total. But at the same time, work in progress units on 30 November were 2000 so; total transferred out units could be possible 11000 in total.
Calculation of Equivalent units
| Karlene Industries | ||||
| Heating Department | ||||
| Physical Flow of Units | ||||
| 30-Nov-16 | ||||
| Physical units | Equivalent units | |||
| Date | Quantities | Materials | Converted units | |
| Units to be accounted for | ||||
| 1 Nov. 2016 | Work-in-progress units | 1000 | ||
| Started into production units | 12000 | |||
| Total units | 13000 | |||
| Units accounted for | ||||
| 30 Nov. 2016 | Transferred out units | 11000 | 11000 | 11000 |
| Work-in-progress units | 2000 | 2000 | 1200 | |
| Total units | 13000 | 13000 | 12200 | |
| Karlene Industries | |||
| Heating Department | |||
| Unit costs | |||
| 30-Nov-16 | |||
| Costs | Materials Costs | Converted Costs | Total Costs |
| Unit costs | |||
| Total cost (A) | $ 3,640 | $ 6,710 | $ 10,350 |
| Equivalent units (B) | $ 13,000 | $ 12,200 | |
| Unit Costs (A÷B) | $ 0.28 | $ 0.55 | $ 0.83 |
| Costs to be accounted for | |||
| Work in progress, Nov. 1 | $ 1,000 | ||
| Started into production costs | $ 9,350 | ||
| Total costs | $ 10,350 | ||
Notes for Calculation of total costs:
Materials total costs: $3000 + $640 = $3640
Conversion costs: $360+$6350 = $6710
From the above tale, it can be analyzed that total costs for the production in heating department will be $10350. Material costs per unit will be $0.28 for the equivalent units of 13000, while conversion costs per unit will be $0.55 for equivalent units of 12200.
Job costing method is effective for the measurement of production in terms of completed jobs. Company uses this because it is helpful in providing a basis for estimation of the cost of similar jobs taken in future. At the same time, it is also useful to provide detailed analysis of the cost for each job. In addition it is also used to control the plant efficiency (Laudon and Laudon, 2016.).
2. Predetermined overhead rate
Martinez allocates its manufacturing overhead based on labour costs.
Predetermined overhead rate = Estimated manufacturing overhead cost/Estimated total units in the allocation base (Tarquini, 2017)
= $24 million/ $20 million
= 1.2 per direct labor cost
Estimated manufacturing overhead cost = 24 Million or $24,000,000
Actual costs incurred during 2018 = $73,000,000
Underapplied overhead occurs when the company applies less overhead as compared to the actual overhead cost incurred.
Amount of the under-applied overhead for 2018 = $73,000,000- $24,000,000
= $49,000,000
Calder, B.G., Nilakantan, N., Srivastav, S., Wu, J., Skjolsvold, A.E., Mazeev, M., Abbasi, A.R., Mainali, S., Khatri, H., Wang, J. and Uddaraju, P.C., 2016. Implementing failover processes between storage stamps. U.S. Patent 9,274,906.
Devireddy, S., Liu, A., Lampe, T. and Hollenbeck, P.J., 2015. The organization of mitochondrial quality control and life cycle in the nervous system in vivo in the absence of PINK1. Journal of Neuroscience, 35(25), pp.9391-9401.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
Nousiainen, M.T., Caverzagie, K.J., Ferguson, P.C., Frank, J.R. and ICBME Collaborators, 2017. Implementing competency-based medical education: What changes in curricular structure and processes are needed?. Medical teacher, 39(6), pp.594-598.
Rogulenko, T., Ponomareva, S., Bodiaco, A., Mironenko, V. and Zelenov, V., 2016. Budgeting-Based Organization of Internal Control. International Journal of Environmental and Science Education, 11(11), pp.4104-4117.
Tarquini, S., 2017. A review of mass and energy flow through a lava flow system: insights provided from a non-equilibrium perspective. Bulletin of Volcanology, 79(8), p.64.
