BUS201 Management Accounting: Assessment 2 Business Report Answer

ASSESSMENT BRIEF

Subject Code and Name: BUS201 Management Accounting 

Assessment 2: Business report Group
3000 words (+/- 10%)

Learning Outcomes

1. Apply critical judgement to a range of financial techniques used to effectively monitor the performance of a business.
2. Interpret financial reports for internal management and external users.
3. Analyse and interpret financial profitability and liquidity.
4. Evaluate the role of budgeting together with developing,
   implementing and managing operating and capital
   budgets.
5. Appraise the role and purpose of international
   benchmarking and analysis tools in evaluating business
   performance against budgets.
6. Examine different forms of debt and equity financing of a
   business.
7. Analyse the relationship of financial reports and
   operational performance.
8. Compile a set of financial information.

Context:

As a future leader in Hospitality and Tourism, you will frequently use management accounting to make better business decisions. Investors and creditors often use Cost Volume Profit (CVP) Analysisto screen business plans by evaluating a firm’s cost structure and sales volume needed to generate profit. For the purposes of this assessment, your team is planning to open are a new “BoutiqueHotel“ (The “S” hotel) accommodation space in Sydney, Australia. The hotel has 50 Deluxe Rooms and 130 Standard Rooms, and serves breakfast only. Determine all relevant financial data then prepare a CVP analysis and Budget. This group report gives you an opportunity to work with a team of your peers and investigate a topic that is of significant importance to the hotel sector.

The purpose of this assignment is threefold. First, this group report is to be a practicum for learning leadership skills including group decision making, conflict resolution, interpersonal communication, and critical analysis. Second, you have an opportunity to implement financial solutions both independently and as part of a diverse team. Finally, this assignment also provides you with an opportunity to develop effective written communication skills.

Instructions:

Using the template provided, apply management accounting decision-making concepts and skills for your business to structure your Report:

1. Identify your location and customer segment. In one (1) paragraph, explain how you will attract your customer segment to your hotel location in high, shoulder and low seasons. Provide a sample photo of your Deluxe Room and Standard Room to explain why these types of furnishings will attract your customer segment (reference your photos).
2. Use the Balanced Score Card (BSC) performance management approach to provide two (2) key business targets in all four (4) areas for 2020 in a BSC table. Justify your choices by research and analysis in one (1) paragraph, including an analysis of the management of all Triple Bottom Line initiatives in three (3) paragraphs.
3. Prepare a Sales budget, Direct Materials budget, Direct Labour budget, Overhead budget, Selling expenses budget and Administration expenses budget from January 1 2020 to December 31 2020. Evaluate these six (6) budgets with one (1) paragraph for each budget to explain your decision-making choices.
4. Evaluate the Weighted Average Contribution Margin (WACM) and Contribution Margin Ratio (CMR) in one (1) paragraph by explaining how to use these measures for better business decision-making.
5. Evaluate the sales volume in units and sales dollars at breakeven point in one (1) paragraph by explaining how to use these measures for better business decision-making.
6. Evaluate Operating Leverage and Safety Margin in one (1) paragraph by explaining what this means in terms of the risk to your business if your sales in 2021 are estimated to go up or down by 20%.
7. Evaluate how your hotel can make better business decisions. Make specific recommendations to proposed investors for the next steps to progress the business concept in 2021. Carefully explain how your business will be better in 2021 compared with your 2020 plan.

Group allocation and responsibilities

•   You are required to work in a group of 4 students for this assessment.
•   One student per group is required to submit the report to Turnitin.
•   You will be required to complete a Group Contract and create an on-going log (Minutes) of
  all group meetings: both documents will be submitted with your report as appendices.
•   A BMIHMS Peer Evaluation form must be completed and submitted to the lecturer during
  the Week 9 lecture. This is a formal requirement of this assessment.

Group work guidelines

For assessments where students are expected to work in groups, workload must be shared equitably among all group members. Please refer to sections 6.1 and 6.2 of the TUA PL_AC_014: Student Conduct Policy on TUA policies and forms web page. In cases of conflict within a group (eg. where a group member has not attended meetings or completed their share of the work on time), and the team deems that an individual or individuals should receive different marks to reflect this, then evidence must be provided to support claims. Evidence may include, but is not limited to, emails, texts, notes on assignment work, copies/drafts of writing/contributions, minutes from group meetings, and/or meeting with lecturer/tutor regarding group project and dynamics. You are strongly encouraged to speak to your lecturer/tutor as soon as you identify there is a problem (before the assessment due date) you cannot resolve on your own or within a timely manner in order to complete the assignment. Please submit all available evidence to your lecturer/tutor by the due date.

Submission Instructions:

1. Typed and formatted following the Assessment Formatting Guidelines and uploaded to Turnitin on time on the due date.
2. The total word count, excluding references, must be within 10% (+ or -) of the assessment word count.
3. The word count for this assessment begins at the start of the introduction and finishes at the end of the recommendations.
4. To be submitted in electronic form BY ONE GROUP MEMBER ONLY as a word-processed file to Turnitin
5. You are expected to refer, in text, to a minimum of eight (8) academic journal articles, which may be supported by industry journal articles or relevant textbooks, plus other credible sources as required, in order to show competency in the assessment.
6. All referencing must be in accordance with the Academic Writing Guide: APA on SharePoint.
7. A school assessment cover sheet to be attached to your paper (Group assessment cover
   sheet)
8. See marking rubric below, you do not need to attach this rubric to your submissions.