Management accounting Assessment

Description / Requirements -

You will need to have completed topic 4, Activity-based costing  to complete this part of your assignment. 

The assignment has to be completed in a group of three (3) individuals from any class and/or cloud (online) students. It is the students' responsibility to form/ join a group and to ensure that the group dynamics work. 

Part A of the assignment requires development of a model using a Spreadsheet and Part B has to be completed in a word document. Both excel spreadsheet and word document have to be submitted to the assignment folder.

Assignment Parts -

This assignment has two parts; part A and part B.

Part B:

You have been asked to analyze the operations of an 'Art, craft and music school' for young children, in order to determine the ways and means that you can improve the quality of the service provided while reducing the costs. You have resolved to analyze the activities provided by the school and use an Activity Based Costing system to assign costs to activities. 

The list below contains potential activities from which to choose. 

Art and craft activities: These activities are conducted daily as a part of the school routine. The aim of these activities to enhance the creativity of the students involved.

Music activities: This activity is conducted weekly and it aims to encourage the student's interest in music and dancing.

Learning activities: These are conducted as a part of the daily routine of the school, where the students are listening to stories and following directions as a part of games, play or other interactive activities.

Meal activities:  Snacks and light meals are provided by the teachers and one food-service employee. From time to time, the students are given the opportunity to prepare their own snacks. 

Free play activities:  The school has allocated a time for the students to play. This can be indoors or outdoors and a few teachers observe them playing.

Miscellaneous: These miscellaneous activities include greeting the students when they are coming in and leaving the school, helping them with any of their requirements and interacting with the parents of the students.

Conferencing with the parents: This is a quarterly activity. The head teacher of the school meets and has a discussion with each student's parents for about half an hour about the progress of the students and anything else that needs to be discussed.

Required: 

1. You are required to choose several activities to use for cost pools and identify cost drivers for those cost pools. Explain your choices.

2. You are required to discuss the potential benefits and costs of implementing an Activity Based Costing (ABC) system  for an institution like above, using at least two academic research articles as your background research.

Attachment:- Assignment Files.rar