Guidance, Structure and Referencing - Task 2

Please use academic references from credible literature sources for quality and
support to your discussion

The answer should include:

Calculation of three ratios: Gross pro t margin, Trade payables days and Trade
receivable days for three companies
Comparison and comments on the performance of three companies based on
these ratios related to pro tability and ef ciency.
Suggestions to the management of these three companies where improvement
could be made in the pro tability and ef ciency performance of the companies.
Provide another commentary on the pro tability and ef ciency performance of the
following two companies if the conditions change for the company:
Charlie Foods had an exceptionally large turnover in December 2022
PuppyUs purchased a substantial amount of inventory in December 2022 at an
advantageous price

These two points need to be analysed as an independent point.

Charlie Foods had an exceptionally large turnover in December 2022– this may
impact on Gross pro t margin (high sales could result in high gross pro t assuming
the cost of goods sold doesn't change proportionally (However, COS could change
so the impact may not be as high or no impact)- this may impact on Trade
receivable days (distorted upwards) due to increase in credit sales or slower
collection from the customersPuppyUs purchased a substantial amount of inventory
in December 2022 at an advantageous price –it may impact the Trade payables
days (distorted upwards)– as extra purchases are made on credit. [ some students
might mention gross pro t margin increases as the cost of goods sold decreases
due to lower purchase prices due to bulk purchase.]

Students are just required to explain how these changes will impact the ratios and
suggest to management where performance improvement may be possible
comparatively with other companies.

List of References:

Please provide list of references after each task.

You must provide a Harvard Reference list which includes all the citations referred
to in your task.
REMEMBER You must include at least 2 references for task 2. You can include
more.
Please use academic references from credible literature sources for quality and
support to your discussion.
Assessment Criteria Task 2
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 Assessment criteria Task 2
Assessment criteria Task 2

Interpreting company’s nancial statements and analysing its performance (LO2) -

(30%)

A (70-100%)

Outstanding

Work of excellent standard, showing an in-depth understanding of the company's

nancial statements and assessing company’s performance. Evidence of
independent reading outside the module list and beyond classroom notes using a
variety of references from creditable sources. Complete answers to all questions of
the task. Excellent analysis and interpretation of the ratios using the available
information and comparing different years' performance performance. An excellent
structure with a logical sequence of the material and clear layout. Coherent
argument excellently supported with appropriate supporting evidence/material. An
excellent use of grammar, punctuation, and spelling. Few errors /virtually free from
referencing or grammar errors.

B (60-69%)

Very good

Work of a very good standard showing a very good understanding of the company's
nancial statements and assessing company’s performance. Some evidence of
reading outside the module list and beyond classroom notes. All important elements
covered. Evidence of very good analysis and interpretation of the ratios using the
available information and comparative analysis. A very good structure with a logical
sequence of material and layout. A very good use of relevant material to support the
argument. Generally very good use of grammar, punctuation, and spelling. Some
minor repeated errors in referencing or grammar.

C (50-59%)

Good
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 Work of a good standard showing a generally sound understanding of the
company's nancial statements and assessing company’s performance. Reading
based on main texts or material. Content relevant to the task. Good analysis and
interpretation of the ratios using the available information and comparative analysis.
A good structure with a relatively easy-to-follow argument, but reading is not always
fully utilised in supporting arguments. Some evidence of referencing. Grammatically
competent, but some repeated errors in referencing or grammar.

D (40-49%)

Suf cient

Work of a suf cient standard to pass, showing satisfactory evidence of

understanding of the company's nancial statements and assessing company’s
performance. Some evidence of reading from class notes or outside. But limited or
little use of literature. Demonstration that LOs met. Content is broadly relevant but
limited or little analysis and interpretation of the ratios using the available
information and limited discussion on comparative performance. Presentation is
adequate but could be improved upon in terms of organisation and layout. Some
assertions are made but not substantiated by evidence. Some attempt at
referencing. Sources are usually given but not systematically or consistently. Errors
in grammar, punctuation and/or spelling.

E (30-39%)

Insuf cient

Work of an unsatisfactory/insuf cient standard, showing a lack of understanding of

the company's nancial statements and assessing company’s performance. Too
little evidence of reading, from class notes or outside. Material merely repeats
taught input—limited analysis and interpretation of the ratios using the available
information and little discussion on comparative performance. Evidence of suf cient
grasp of learning outcomes to suggest that the student will be able to retrieve the
module on resubmission. Poorly presented. Little or no linkage of ideas; lacks
logical sequence. Assertions lack substantiation. Limited references. Several errors
in grammar, punctuation and/or spelling. Possible use of extensively quoted
passages.

F (0-29%)

Poor
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No learning outcomes fully met. No evidence of reading. Little/no attempt to
address the assignment brief or to engage with module materials—inadequate
demonstration of knowledge or understanding of the interpretation of the ratios.
Extremely poorly presented. No clear structure. Inadequate/no analysis of ideas
demonstrated. Limited or no references. Huge errors in grammar, punctuation and/
or spelling.

Resources
Here is the list of useful resources for assessment task 2

Please note this is not an exhaustive reading list – you could at best use these
references as starting points. You can search more resources, from Library A-Z
databases (for example ABI/INFORM Global etc.), such as books, articles from
scholarly journals and reports on this topic.

Chapter 9 'Financial Statement Analysis' p.214-236 from the book: Collis, J. et al.
(2013) Business accounting : an introduction to nancial and management
accounting . Second edition. Hampshire: Palgrave Macmillan.

Chapter 7 entitled 'Assessing and Interpreting Financial Statements', p.263-266,

from the book, Accounting and Finance: An Introduction (Links to an external site.),
by McLaney and Atrill (2020).

Chapter 3 entitled 'Measuring and reporting nancial performance', p.89-90, from

the book, Accounting and Finance: An Introduction (Links to an external site.), by
McLaney and Atrill (2020).

Chapter 6 'Analysing and interpreting nancial statements' p.194-238 from the

book: Peter Atrill, E. M. (2019) Accounting and nance for non-specialists.

Chapter 8 'The annual report' from the book Dyson, J. R. & Franklin, E. (2020)
Accounting for non-accounting students (Links to an external site.) . Tenth edition.
Harlow, England: Pearson.
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 Topic 9-0 Final Assessment Task 3

Guidance, Structure and Referencing - Task 3

You should aim to produce a draft of Assessment Task 3, before moving on to the
next session. The most successful approach to producing your Assessment Task 3
is to complete a Draft. Once Draft is completed you should then analyse the
content, review all of the content and make any amendment’s needed.

Task 3 (1,000 words) Total 35 Marks

Keva Ltd. is a manufacturing company that has been in operation for over 30 years.
The company has been using traditional budgeting methods to manage its
nances, but recently, the management team has been exploring alternative
approaches to budgeting. The management team is interested in implementing a
beyond-budgeting approach to improve the company's nancial performance and
responsiveness to changing market conditions.

In task 3, the first part is a generic question comparing and contrasting

traditional and beyond budgeting. Students can use a table to attempt
this section. However, it is perfectly fine to answer it in paragraphs
without a table. It is important that the differences and similarities in the
features, benefits and limitations (these can be many) are discussed in
this answer.

The second part is the applicability of the concept of beyond budgeting

to the scenario in question. I appreciate there must be some repetition
of benefits and challenges, however, the focus should be on how these
benefits and challenges apply to this company’s scenario and which
benefits (and challenges ) are suitable in this situation.

Required:

Compare and contrast the traditional budget and beyond-budgeting approaches,

highlighting the differences in their features, bene ts, and limitations.
Evaluate the suitability of the beyond-budgeting approach for Keva Ltd., highlighting
the potential bene ts and challenges.
Guidance, Structure and Referencing - Task 3
In Task 3, students are expected to show an understanding of budgeting.
Use canvas topic 9, topic 9 essential reading and canvas plus class activities to
guide you in this question
While attempting this question it is expected from the students to show an
understanding of the traditional budgeting and beyond budgeting.
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It is expected from the student to conduct an independent research traditional and
beyond budgeting .
Discuss the differences between traditional and beyond budgeting and the
application of beyond budgeting.
Use credible literature resources, use relevant literature from and outside the
reading list and relate your discussion to traditional budgeting and beyond
budgeting.

Task 3 has two parts:

One to compare and contrast the traditional budget and beyond-budgeting
approaches. You can use a table or write in paragraphs to discuss the differences
between two approaches using different headings related to features, bene ts, and
limitations.
Second, answer this question about the application of beyond-budgeting taking into
account the information in the question:
Evaluate the suitability of the beyond-budgeting approach for Keva Ltd.
It should be answered by highlighting the potential bene ts and challenges for Keva
Ltd.

List of References:

Please provide list of references after each task.

You must provide a Harvard Reference list which includes all the citations referred
to in your task.
REMEMBER You must include at least 6 references for task 3. You can include
more.
Assessment Criteria Task 3
Assessment criteria Task 3
Assessment criteria Task 3

Knowledge and application of budgeting, control, and performance management

systems (LO1) - (35%)

A (70-100%)

Outstanding

Work of excellent standard, showing an in-depth understanding of budgeting,

control and performance management system. Evidence of independent reading
outside the module list and beyond classroom notes using a variety of references
from creditable sources. Complete answers to all questions of the task. Excellent
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 use of key arguments to discuss and apply the concepts to the scenario. An
excellent structure with a logical sequence of the material and clear layout.
Coherent argument excellently supported with appropriate supporting evidence/
material. An excellent use of grammar, punctuation, and spelling. Few errors /
virtually free from referencing or grammar errors.

B (60-69%)

Very good

Work of a very good standard, generally showing a very good understanding of

budgeting, control, and performance management system. Some evidence of
reading outside the module list and beyond classroom notes. All essential elements
covered evidence of very good use of key arguments to discuss and apply the
concepts to the scenario. A very good structure with a logical sequence of material
and layout. A very good use of relevant material to support the argument. Generally
very good use of grammar, punctuation and spelling. Some minor repeated errors
in referencing or grammar.

C (50-59%)

Good

Work of a good standard showing a generally sound understanding of budgeting,

control and performance management system. Reading based on main texts or
material. Content relevant to the task. A good discussion and application of
concepts to the scenario. A good structure with a relatively easy-to-follow argument,
but reading is not always fully utilised in supporting arguments. Some evidence of
referencing. Grammatically competent, but some repeated errors in referencing or
grammar.

D (40-49%)

Suf cient

Work of a suf cient standard to pass, showing suf cient evidence of understanding
of budgeting, control and performance management system. Some evidence of
reading, from class notes or outside. But limited or little use of literature.
Demonstration that LOs met. Content is broadly relevant but limited or little
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 discussion and application of concepts to the scenario. Presentation is adequate
but could be improved upon in terms of organisation and layout. Some assertions
are made but not substantiated by evidence. Some attempt at referencing. Sources
are usually given but not systematically or consistently. Errors in grammar,
punctuation and/or spelling.

E (30-39%)

Insuf cient

Work of an unsatisfactory/insuf cient standard showing a lack of understanding

budgeting, control and performance management system. Too little evidence of
reading from class notes or outside. Material merely repeats taught input—limited
understanding of the balanced scorecard and its application to the scenario.
Evidence of suf cient grasp of learning outcomes to suggest that the student will be
able to retrieve the module on resubmission. Poorly presented. Little or no linkage
of ideas; lacks logical sequence. Assertions lack substantiation. Limited references.
Several errors in grammar, punctuation and/or spelling. Possible use of extensively
quoted passages.

F (0-29%)

Poor

No learning outcomes fully met. No evidence of reading. Little/no attempt to

address the assignment brief or to engage with module materials—inadequate
demonstration of knowledge or understanding of the interpretation of the ratios.
Extremely poorly presented. No clear structure. Inadequate/no analysis of ideas
demonstrated. Limited or no references. Huge errors in grammar, punctuation and/
or spelling.

Resources
Here is the list of useful resources for assessment task 3

Please note this is not an exhaustive reading list – you could at best use these
references as starting points. You can search more resources, from Library A-Z
databases (for example ABI/INFORM Global etc.), such as books, articles from
scholarly journals and reports on this topic.
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Neely, A. et al. (2003) Better budgeting or beyond budgeting? Measuring business
excellence. [Online] 7 (3), 22–28.

Berland, N. et al. (2018) Exposing organizational tensions with a non-traditional

budgeting system. Journal of applied accounting research. [Online] 19 (1), 122–
140.

Johnson and Coombs (n.d.) Beyond Budgeting [online] available at: https://
www.accaglobal.com/pk/en/student/exam-support-resources/professional-exams-
study-resources/p5/technical-articles/beyond-budgeting.htmlLinks to an external
site.

Libby, T. & Lindsay, R. M. (2010) Beyond budgeting or budgeting reconsidered? A

survey of North-American budgeting practice. Management accounting research.
[Online] 21 (1), 56–75.

Edo Cvrkalj & Denis Smolar (2015) Beyond Budgeting. FIP (Zagreb). 3 (1), 113–
120.

Nguyen, D. H. et al. (2018) Beyond budgeting: review and research agenda.

Journal of accounting & organizational change. [Online] 14 (3), 314–337.

Chavan, M., (2009). The balanced scorecard: a new challenge. The Journal of
Management Development, 28(5), pp. 393-406.

McLaney, Eddie, and Peter Atrill. Accounting and Finance: an Introduction EBook
PDF, Pearson Education, Limited, 2020.