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HI5017 Managerial Accounting
Questions:
Purpose:
This assignment aims at developing your understanding of the purpose and use of management accounting systems, and its usefulness in aiding managers make informed decisions. You are to critically evaluate the literature (using journal articles) to analyse the practical use of management accounting systems by contemporary companies, in terms of their relevance to the decision-making by managers and achievement of business goals.
Assignment Task:
Journal Article Critique (30 Marks)
You are required to conduct a literature search and discussion in this assignment. You are to choose a peer reviewed journal article (from any country) on the:
-Use of Budgeting as a management technique for managing resources.
The article should be published between 2010 – 2020. Choose your article only after you have accessed several relevant articles, and then choose the best articles that will answer the assignment question below.
Required:
Critically evaluate the relevance and challenges of budgeting systems by answering the 5 questions below:
- Briefly discuss the budgeting process. (5 marks)
- Based on your selected journal article, discuss citing examples whether the budgeting process satisfies the purpose of planning, controlling and evaluating performance. (5 marks)
- The two widely used practices in preparing budgets are ‘top down’ budgeting and ‘bottom up’ budgeting. Identify and explain the practice adopted by the organisation discussed in your selected journal article and further explain the behavioural implications of adopted practice. (5 marks)
- Based on your literature findings (above), critically evaluate the comment that ‘traditional budgeting practices are constraint on creativity, and the time and energy spent on budget formulation is better spent elsewhere’.
- Based on your literature findings (above), would you recommend budgeting for contemporary organisations for planning and control purpose? Explain (5 marks)
HI5017 Managerial Accounting
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