Question Answer | Financial and Management Accounting

Running head: FINANCIAL AND MANAGEMRNT ACCOUNTING
Financial and Management Accounting
Name of the Student
Name of the University
Author Note

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Table of Contents
Critical Analysis..........................................................................................................................3
Answer to question 1...................................................................................................................3
Answer to question 2...................................................................................................................4
Answer to question 3...................................................................................................................6
Answer to Question 4..................................................................................................................7
Strategic initiative............................................................................................................................8
Answer to question 1...................................................................................................................8
Answer to question 2...................................................................................................................9
Answer to question 3.................................................................................................................11
Answer to question 4.................................................................................................................11
References......................................................................................................................................13

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Critical Analysis
Answer to question 1
Westpac group is a bank that provides service in Australia. This firm operated in the
banking and financial service sector. The headquarters are located at Sydney, Westpac place.
This is one of the oldest banks of Australia. This bank is also one of the big four banks of
Australia. The servicesprovided by the banks are finance and operations, corporate and consumer
banking, investment, mortgages and credit cards (Westpac.com.au 2019). The bankoperates in an
open and a clear way to make strong the system of banking operations which help the bank to
deliver good outcomes to the customers of the banks. This lead the bank to create a positive
social and environmental impact for the benefit of all. The banks always rectify the identified
errors. The bank has tried to reduce the consumption of paper such as in the financial year 2016
the consumption of the paper per tones by the company was 3,304. The consumption of paper
per tones by the company in the financial year 2018 was 2,189. According to the annual
sustainable report of 2018, the bank has reduced the consumption of energy such as in the
financial year of 2016 the energy consumed by the bank was 848,658 and in the financial year
2018 the consumption of energy by the bank is 710,526. The bank has started to use waste
recycled products and have taken a target for 80% of waste diversion from the landfill to the
corporate workplaces. The positive social impacts of the bank are such as providing financial
consultation to the peoples. The bank offers services and range of products that provides better
services to the consumers of the bank. The bank have promoted and upgraded the financial
capability for different segments of consumers (Burd, Smith & Reisman 2015). The bank also
actively participates for monetary contribution during environmental disaster such as drought,
flood and donation to the army camp. The bank has also introduced an option for the cardholders

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such as they can block transaction related to gambling of the merchants to resolve the issue of
gambling problem. The bank had always tried to do things that will be better for the society and
environment.
Answer to question 2
The four top banks in Australia are Commonwealth bank of Australia, Westpac group,
Australia and New Zealand banking and the National Australia bank. These banks are all take
part actively in the sustainable development. According to the analysis of the reports of these
four banks there are three scope of emission such as the stationery energy such as the Vehicle
transport and the water treatment plants, energy of electricity, energy of premises of vehicle
transport flights and accommodation. The graph shown below will help to understand the
emissions of these four firms.
Figure 1: Scope of emission of the four banks.
Sources: Australian sustainable comparable websites
The figure shows that the banks have lower the emission from before. The lowest emission for
electricity and the stationery energy such as vehicle and water transport is by the Commonwealth
bank of Australia throughout the year (Alali, Chen & Liu 2019). The other banks such as
Westpac group, Australia and New Zealand banks and National bank of Australia is same. The

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next graph that is the graph of premises energy such as the flights and accommodation, vehicle
transport shows that the horizontal lines present on the graph increases. The emission of Westpac
remains the same throughout the year. The Commonwealth bank have keep the emission low till
the year 2016, then there level of emission increases. The next graph shows the lending practices
of the banks, specifically the ratio of high and low carbon investment in the Australia market.
These have been found on the annual reports of the banks that the banks have some sort of clean
energy investment target throughout the year. The graph shown below will the show the ratio of
clean energy and fossil based energy of investment by the banks.
Figure 2: investment comparison of the banks spends on clean energy and fossil based projects.
Sources: Market forces, for the year 2017.
The graph clearly shows that the Westpac group is in the second position for spending on the
clean energy based investment. The National Australian bank is in the 1st position for investing in
clean energy based projects. According to the social performance of these banks the engagement
with the stakeholder is the basic measure of social sustainability and through the identification of
the stakeholder. These records help the banks to measure the level of sustainability strategy. The
banks have identified the stakeholders that are all relevant. These stakeholders include the

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customers, employees, shareholders, regulators and the NGO’s. The sustainable report of the
four banks has been analyzed and all the banks have same kind of social goals. The goals of the
banks are such as delivering of for the customers that mean that receiving the basic rights and
achieving the real outcomes (Adamson et.al 2016). The next goal that is of doing the right things
to make the better the financial services that they have been provided to the consumers by the
bank. The next goal is of supporting communities that means backing a sustainable future for all
consumers of the banks. The other goals are such as good governance and the transformation and
technology.
Answer to question 3
The standard of GRI represents the best practice for reporting openly on the level of
economic, environmental and social impacts by the firm. This report provides information about
the organization positive and negative contribution towards the sustainable development. The
Interrelated GRI standards are primarily designed for to be used as a set in making a
sustainability report focused on the material topics (Camilleri 2018). The reports that have been
prepared by following the GRI standards provide the firm and inclusive picture of firm topics
and their related impacts. The firm may use all or a part of the selected GRI standard to report
the relevant information. The GRI framework is useful to the Australian firms. There are some
challenges and the issued have emerged according to the analysis it have been found that the
reporting framework provide a comparability tool across the sector. This also provides a way the
banks to organize the issues efficiently (Higgins, Milne & Van Gramberg 2015). The identified
emerging issues that bring challenges to report and organize are the monetary risk, human
relevant rights specifically in the workplace and suppliers, taxing clearing, and the
methodologies for valuation and the measurement of community impact. There is much other

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reason that brings challenges when complying the GRI standard such as GRI provide a
disclosure on the management approach known as DMA. This is beyond the policies of reporting
and the banks get faces a lot of managerial problems.
Answer to Question 4
The firms that adopt the GRI reporting standards received many benefits such as the
sustainability performance of the firm increases from before. The management of risk by the
firm also increases and the related communication within the investors. This also led to the
engagement with the stakeholders of the firmand relatively will increase the relation with the
bank. The report gives motivation to the employees of the bank and gives them a reason to stay
back at the company. The credibility of the bank will become more committed and effective. The
internal management of the data’s and reporting system of the bank become strong (Grushina
2017). The strategy of the sustainability also improves and the selection of the performance
indicators and the targets. The GRI standards promote the standardized approach of reporting to
stimulate the demand for the sustainable information (de Oliveira Bellini, Rodrigues & Lagioia
2019). This will provide an additional benefit reporting organization and the users of the report
such as the stakeholders, investors and shareholders of the banks. The investors, shareholders
and the stakeholders are very important for any kind of organization (Gallego-Álvarez &
Rodríguez-Rosa 2018). The origination does everything to make their investors satisfied with the
services they have been provided to their investors (Cunha & Moneva 2016). The investors,
shareholders and the stakeholders have become very much updated and had start understanding
the importance of corporate sustainability data and related information that are provided in the
sustainable report of the firms. The data that have been provided by the GRI standard is not
useful for talking investment decision, as these data’s does not provide any financial information

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to the users about the company (Calibri 2017). However, the investors will get a basic
knowledge about the environmental and social impact of the operation by the company. These
reports provide detailed information about the sustainable development done by the banks. The
report shows how many the banks and the firms show sustainable developments towards the
environment and society. This also shows the corporate social responsibility of the firm. The
CSR rating of the Westpac group is on average. The consumers of the bank also want the firm to
maintain this level.
Strategic initiative
Answer to question 1
The way a particular cost reacts to changes in the level of activity is known as the cost
behavior. The cost remains the same and change appropriately in response to a change in
activity. This change in the activity of cost will help the firm to create a budget, forecasting and
will also help to determine the amount of profit that will be generated from new product and
services of the firm.
The fixed cost of any products and services are same all the time. The units of the fixed cost May
changes depend on the no of units produced more or less. The expenses of the depreciation
remains the same it is not related with the changes of fixed units produced less or more. The
variable cost are completely opposite of fixed cost. These are the cost which is not fixed these
changes all the time of the production. These are the two most basic costs that the firms have to
incur during the production and manufacturing the goods (Kozel et.al 2017). There is also
another cost other than these cost that is the mixed cost which includes the fixed and the variable

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cost. The fixed cost should be 40% of the basic cost and the variable and the other cost should be
30% each.
Answer to question 2
Balance score card
Objective Measure
Financial To create new source of
consumer and revenue
The revenue generated from
the new customers.
The review the financial
record of sales.
Customer To increase the satisfaction of
the consumers by providing
new range of products
The survey of customer.
The retention of customers.
Internal business processes To develop, innovate and
introduce new ranges of
products, with effective
production.
Communicate with the
customer and acquire
knowledge about the
customer’s likes and
preferences.
Identify the number of new
consumer products and
services in the market.
Learning and growth The use of technology for
rapid product launch.
Generation of ideas from the
external sources

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To have an adequate
knowledge about the recent
technologies that has been
used for production.
Financial perspective- The companies who plan for a profit develop the financial perspective of a
balance score card first. This perspective tells that the strategy whether it will improve the
financial position of the company and how effective it will be in the market. The objective here
is to create new sources of customers and revenue. The chosen measurements are the revenue
that will be generated from the new customer and to examine the monetary records of sales.
According to the objective the revenue generated from the new customers will clearly state that
the firm acquire new customers. The analysis of the records of sales will also help the firm to
have an idea about the quantity of new customer they acquire.
Customer perspective – This helps in targeting the market segment of the firm. This perspective
is all about the satisfaction and service that the firms provide to the customers. The objectives are
chosen to increase the customer satisfaction. The most relevant way to measure this is by doing a
survey of customer and analyzes the level of customer retention. The primary Collection of data
is not always offer the full result of analysis. The companies also need the secondary collection
of data that is the survey. This provides an accurate data to the company. The company then uses
this data to set target and goals to achieve market. The retention of the customers the company to
get to know that the service provided by the company increase the customer satisfaction.
Internal business processes- This ensures the stability of operation of the firm. The objective
chosen here is to develop innovate the new products and with an effective production. This can

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be measure by communication with the customer this will help the firms to acquire adequate
knowledge about the likes and preferences of the customer (Hatch et.al 2017). This will also help
them to make the service better from before. Identification of the new products and services in
the market will help them to manufacture a product which will be very competitive and
technically strong (Jedel & Burchard 2018).
Learning and growth - The objective that have been chosen here is the use of Technology for
Rapid product launch. This can be measured with the generation of ideas from the external
sources and to have an adequate knowledge about the recent and current Technologies that have
been used for production (Johari 2019). The most important thing is the developing and
innovating new products. The educate knowledge about the recent technologies will help the
firm to produce a better product which will become a substitute and competitive in the market.
Answer to question 3
The break even analysis is business tool that is popular and is used by most of the firms.
This help to evaluate the performance of the business on the basis of cost as it is a supply side
analysis (Lament 2015). This also helps the firms to measure the efficiency of the business plan.
This helps in the determination of the structure of cost (Krištofík, Lament & Musa 2016). The
break even analysis is very useful for the pricing and the promotion after the product had
launched in the market. This helps in controlling the cost of the product.
Answer to question 4
The breakeven point is a point or a situation where there is no profit or no loss. The total
revenue of the firm meets with the total expenditure of the firm. The break even this point and to
gain maximum profit the firm have to sold goods that will earn them more revenue. For example

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if ten products have been produced then at least five 8 products have to be sold to earn the profit
(Sarkodie & Strezov 2018). This is because the firm will make the price as more than the cost of
producing each item. The firm will achieve the required amount of target from the sale of eight
products. The strategies that can be used to increase the sale are by the branding and promotion
of the product. The quality of the product should be better and the service of the product should
be 24 hours (YANG & WANG 2017). These strategies will help to enhance the breakeven point
and forecast profit. This is because branding and promotion will help the people to get to know
about the product. The better quality and the 24 hour service of the product will help the product
to get more sold in the market.

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