a. Give solutions to fix the current ABC or discuss advantages of other methods 2. Estimate the effect of shutting down an unprofitable service line a. Recommend whether to shut-down or not using both qualitative factors and the estimate 3. Prepare a marginal costing statement with and without dropping the unprofitable line
Financial performance measurement and firm value
1. Advantages and disadvantages of ROI/ROCE as a key performance measure 2. Suggest alternative financial measures to ROI and give advantages compared to ROCE 3. Calculate the ROCE of different channels/segments. Use this and other measures to compare the financial performance of the channels 4. Interpret a revised income statement
Customer Value and Customer Accounting
1. Estimate the profitability of a potential new customer from additional information (see ) 2. Advise what directors should do about each customer/customer segment assuming cost estimates are reliable 3. Outline the potential weaknesses (disadvantages) of the customer profitability methodology used and suggest improvements 4. Is it beneficial to trace corporate costs to individual customers? 5. Describe further customer accounting measures that could be used and explain how they will improve business performance (benefits) 6. Recommend how to enhance profitability during the year (quiet times) 7. Calculate Net Promoter Score, explain what it is for and how to use it 8. Interpretation of a whale curve and recommendations based on it 9. Explain advantages of CSPA over SLPA
Balanced Performance Measurement, Management, Rewards and Bonus
Schemes 1. Describe characteristics of a balanced performance management system 2. Explain limitations of the current key financial measures 3. Construct a balanced PM model a. 8+ key performance measures b. Explain how each is measured and how the goal is achieved c. Choose some of these measures to explain how each improves the effectiveness of performance measurement and drive improvement in financial performance 4. Explain any key issues that must be fixed in the company to implement the performance measurement system Supplier and Inventory Performance Management 1. Calculate the figures from the EOQ model (EOQ, ROP and SS), interpret these figures and how they help the company 2. Explain the EOQ model and outline the assumptions in this model a. Link to the company – is the EOQ model relevant? 3. Calculate the total cost of ownership and supplier performance index for each supplier and compare 4. Recommend which supplier to use considering financial and non-financial measures
Quality Management and Costing
1. Advantages and disadvantages of TQM vs. ISO 9001 2. Interpretation of raw materials and quality recommendations and changes that need to be made to implement these 3. Key principles of TQM and ISO 9001, discuss how each or both would or would not benefit company 4. Compare and contrast TQM and ISO 9001 5. Give examples of current key quality problems (no calculations) and recommend solutions to these (financial/non-financial factors)
Management Accounting for the Environment
1. Prepare an environmental cost report + express each cost category as a % of total environmental costs and total operating costs 2. Comment on environmental performance using info from cost report 3. Recommendations on how to improve environmental performance 4. Explain the TEQ model and identify possible environmental costs for each of the categories 5. Explain benefits of the product lifecycle approach to environmental management 6. Discuss the company’s current strengths and weaknesses based on the report 7. Explain the likely financial impact of further certification and highlight non-financial impacts. Recommend what certification to implement if figures given 8. Advice 6 key environmental indicators to better monitor environmental performance