Case Study

ACCT7107 Managerial Accounting and Control Semester 2, 2011 Individual Case Study Kanthal A (Weight: 10% of Final Grade) Due Date for submission: 4pm Friday 2nd September, 2011 Each student needs to complete a case study write-up and submit by the due date following the submission requirements outlined in the course profile (and provided below). Students need to address the following questions in their case study write-up for the Kanthal A case: 1. Describe the competitive environment in which Kanthal operates. 2. Describe in detail how the old cost system operates.

Your answer should include a detailed description of how selling, general and administrative (S,G & A) costs are treated. 3. What is the opportunity faced by Kanthal in relation to reducing batch costs? 4. Describe in detail how the new cost system works. Your answer should include a detailed analysis of the calculations in Exhibit 5 and a description of the each of the steps and their importance in in the new cost system. Within each of the steps, the derivation of the separate line should be shown. 5. Calculate the profit on the following orders using information from Exhibit 5. The characteristics of the orders are: Order 1: Sales SEK2000, 1 order, In stock • Order 2: Sales SEK2000, 1 order, Non Stock • Order 3: Sales SEK160000, 3 orders, Non Stock • Order 4: Sales SEK160000, 28 orders, 22 Non Stock All of your calculations are to be derived from Exhibit 5. This includes Volume Costs, Order costs for Non-Stocked Products and Selling and Administrative Order Costs. What does a comparison of the orders show? From Exhibit 6 and Exhibit 7 provide an example which matches closely to the four orders above. 6. What are some action plans that Kanthal might pursue in response to information provided from the new cost system?

Case Write-up Requirements: Your case write-up should consist of your individual response to each of the questions provided. These questions are aimed at directing your attention to the major problem and issues faced by the company and allow you to apply the concepts and principles covered in ACCT7107 to date to a real business. There is no requirement to answer more than what has been asked in these questions nor to prepare the write-up as a report, however, headings and sub-headings should be used within the answers to each questions to facilitate a good flow. You are limited to 800 words (12 point font and minimum 1. line spacing). The case study will be graded according to your individual write-up. Students are encouraged to follow the ‘How to Prepare a Case Study’ approach prepared by Sid Huff and Ron Weber provided as a handout in Week 1(also provided in the Lecture 1 Learning Materials on the course blackboard website). Submission Requirements: The submission requirements outlined in the course profile are provided below: Submission: Students must submit their case write-up with completed BEL Faculty Assignment cover sheet by 4pm on Friday 2 September, 2011 to the BEL Faculty Collaborative Learning Centre (Level 1 Bldg 39).

Students should also note the new requirements for assignment submission also taken from your course profile (section 5. 4 Other Assessment Information): All assignments are now to be electronically submitted via Blackboard. The instructions for submission are in the Online Submission Folder in your course Blackboard site. The online submission is in addition to any other submission requirements that appear in this ECP. Students should also refresh themselves with the University’s policy on academic integrity and plagiarism.

The relevant information taken from your course profile is presented below: Academic Integrity It is the University’s task to encourage ethical scholarship and to inform students and staff about the institutional standards of academic behaviour expected of them in learning, teaching and research. Students have a responsibility to maintain the highest standards of academic integrity in their work. Students must not cheat in examinations or other forms of assessment and must ensure they do not plagiarise. Plagiarism

The University has adopted the following definition of plagiarism: Plagiarism is the act of misrepresenting as one’s own original work the ideas, interpretations, words or creative works of another. These include published and unpublished documents, designs, music, sounds, images, photographs, computer codes and ideas gained through working in a group. These ideas, interpretations, words or works may be found in print and/or electronic media. Students are encouraged to read the UQ Academic Integrity and Plagiarism policy (http://www. uq. edu. au/hupp/index. html? age=25128) which makes a comprehensive statement about the University’s approach to plagiarism, including the approved use of plagiarism detection software, the consequences of plagiarism and the principles associated with preventing plagiarism. If students cannot meet the due date for the case study write-up, the following university policies and guidelines apply: Applications for Extensions • Medical grounds: Applications for extension on medical grounds shall be made by lodging the Application for Extension of Progressive Assessment form and supporting documentation at the location outlined in Section 5. of the Electronic Course Profile for the course concerned. • Exceptional circumstances: Applications for extension on the grounds of exceptional circumstances shall be made to the relevant Course Coordinator/Program Director by lodging the Application for Extension of Progressive Assessment form and a personal statement outlining the grounds for the application at the location and by the due date outlined in Section 5. 3 of the Electronic Course Profile for the course in which this application is made.

If the exceptional circumstances are such that the student cannot reasonably be expected to have complied with these conditions, a case should be made as to why these conditions could not be met. • Outcome of application: Students will be advised of the outcome of their application via their student email. Note: A Case Study submitted after the due date and time (for which no extension has been granted prior to the due date), will incur a late submission penalty. The penalty is at the rate of 5% of the total available marks for the assessment item, for each calendar day or part thereof that it remains overdue.