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HA2011 Management Accounting


Purpose Of The Assessment

Implement systems to plan and control business operations


You were recently employed as a management trainee during a manufacturing firm. The director of your company had formed a taskforce was formed to explore the likelihood of implementing an Activity-Based Budgeting system within the company. You were assigned to the taskforce thanks to your accounting background.


Your group is required to organize a report back to discuss the suitability of Activity-Based Budgeting for a ASX-listed manufacturing company of your group’s choice (your company). The report should cover the followings: a) an outline of your company b) an outline of the Activity-Based Budgeting and its features c) In what ways Activity-Based Budgeting differ from traditional budgeting system d) In what ways Activity-Based Budgeting can facilitate planning and control activities in your company e) A discussion on whether the Activity-Based Budgeting is suitable to your company

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HA2011 Management Accounting, Holmes Institute, Australia


Introduction: This current study aims at exploring the managing accounting of the renowned company Wesfarmers that's operating within the market over the past decades. The study mainly aims to research the management accounting part and for this, the study will employ different aspects of the management accounting.

Question 1: a) Explain the worth chain concept and discuss two (2) ways the worth chain concept benefits organisations.

Answer: Value chain concept means the series of the activities that the business has got to conduct to make a product or service and deliver them to the purchasers . Therefore, the worth chain of the business includes different aspects of the business like human resource management, procurement, marketing and sales and lots of other aspects like these. Value chain concept is employed by the business to guage the efficiency of the various processes or activities of the business. it's also wont to determine the weaknesses within the current value chain of the business and take away them to make sure that the manufacturing efficiency of the business increases and it ready to produce more value for the business during a less expensive manner (Investopedia, 2019).

The two ways by which value chain concept benefits organisation are going to be discussed here. the primary way by which value chain concept benefits organisation is that the worth of the business increases and therefore the cost of the business decreases. This makes the business activities more cost effective, which end in lower operating cost margin of the business. this provides the business more scope to the business to form its pricing more competitive and provides more value to the business in additional affordable pricing. This increases the market share of the business and helps it increase its customer base (Investopedia, 2019).

The second way by which the worth chain concept benefits organisation is making the business more sustainable. the worth chain concept helps the business identify and take away the ineffective or non-value adding processes from the business. This lowers the expenditure of the business and increases the margin of profit , which results in a rise within the sustainability of the business.

b) supported Wesfarmers Limited, evaluation of the organisation using the worth chain concept. This explanation should include:

i. An identification of the company's mission and objectives.

Answer: The Wesfarmers mission is "to deliver satisfactory returns to shareholders".

Wesfarmers Limited also has some objectives which can be discussed during this section. the primary objective is to extend efficiency within the operation of the business. The second objective is to extend the customer base of the business by fulfilling all customer needs. The third objective is to diversify the business portfolio the maximum amount as possible. The fourth objective is to extend the sustainability of the business by efficient future management of the business. of these are identified because the objectives of Wesfarmers (Wesfarmers.com.au, 2019).

ii. an outline of the competitive strategy (i.e. cost leadership, differentiation or focus) of the corporate .



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