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:

  1. Describe the strategy framework
  2. Build the plan
  3. Define KPIs
  4. Establish the strategy rhythm
  5. Implement strategy reporting
  6. 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:

  1. 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.

  1. 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).

  1. 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.

  1. 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
ParticularAmount ($)Amount ($)
Direct Material Used 
Beg. Raw Material Inventory40000
Add: Direct Material Purchased460,000
Less: Ending Raw Material-50,000
Direct Material Used in Production450,000
Direct Manufacturing labour300,000
Manufacturing Overhead:
Material Handling Costs70,000
Miscellaneous Indirect Manufacturing Labour40,000
Depreciation – Plant Equipment36,000
Lubricants and Coolants5,000
Insurance of Plant Equipments3,000
Plant Leasing Costs54,000
Total Manufacturing Costs 508,000
Add: Beg. Work-In-Progress Inventory10,000
Less: Ending Work-In-Progress Inventory-14,000
Total of Work-in-progress-4,000
Cost of Goods Manufactured for the Year954,000


2. A Schedule of costs of goods sold

Schedule of Cost of Goods Sold
Particular Amount ($)
Add: Beg. Finished Goods Inventory100,000
Cost of Goods Manufactured for the Year954,000
Total Goods Available for Sale1,054,000
Less:  Ending Finished Goods Inventory150,000
Cost of Goods Sold904,000


3. An Income Statement

Income Statement For the Year Ending 2018
ParticularAmount ($)Amount ($)
Sales Revenue1,360,000
Cost of Goods Sold-904,000
AGross Profit 456,000
Operating Expenses:
Marketing Promotion60,000
Marketing Salaries100,000
Distribution Costs70,000
Customer Service Costs100,000
BTotal 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
 Physical unitsEquivalent units
DateQuantities Materials Converted units
Units to be accounted for
1 Nov. 2016Work-in-progress units1000
Started into production units12000
Total units 13000
Units accounted for
30 Nov. 2016Transferred out units 110001100011000
Work-in-progress units200020001200
Total units 130001300012200


Calculate units costs

Karlene Industries
Heating Department
Unit costs
CostsMaterials CostsConverted 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

Analysis of total costs:

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.


1. Job costing method

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

3. Underapplied overhead

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 Neuroscience35(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 teacher39(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 Education11(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 Volcanology79(8), p.64.

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