Module: Performance Management & Control
Assignment Title: PMC Written Coursework Assignment
– The Harvard Referencing System must be used. The Wikipedia website must not be referenced in your work.
– On successful completion of this assignment you will be able to:
1. Identify and critically analyse principles and trends in Performance Measurement and Control. ?
2. Determine the different budgeting techniques and critically evaluate their use in short term decision making ?
3. Analyse the current approach to performance measurement and control in a selected global organisation and critically appraise suggestions for improvement of current practices ?
4. Critically appraise the application of performance criteria in Not for profit and Public sector organisations. ?
Write a short report, intended for CEO of Alpha Products Plc, William Smith, who is not an accountant, advising him of the following:
(a) Using the above financial data provide calculations which support your advice to the company on whether it should produce the three components or outsource them. (20 marks)
(b) Explain the use of the principle of opportunity cost and why cost- minimization and profit maximization are compatible concepts and include a table showing the total variable cost of your selected production or purchasing plan. (12 marks)
(c) Critically discuss the practice of outsourcing and the problems you consider may be associated with this practice. (12 Marks)
(d) Structure and presentation of the report (6 Marks)
Total marks 50
(a) Using the Activity Based Cost information, compare the overhead cost per unit in £ and the percentages of overhead costs for the two parts, X and Y. (16 Marks)
(b) Using the number of units to assign overhead costs to the parts, X and Y, (a traditional approach) compare the overhead cost per unit in £s and the percentages of overhead costs allocated for the two parts. (12 Marks)
(c) Using the data available, explain the differences between the unit overhead costs in percentages between (a) and (b) above. (12 Marks)
(d) Discuss the advantages and disadvantages of organisational decentralisation. (10 marks)
Total marks 50
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