Using financial planning tools and management accounting to respond to financial problems Techniques (Part II)

MA_A2.1: Use of planning tools and management accounting to respond to
financial problems techniques
(Assessment 2 of 2, Individual assignment)
Unit Assessors: Nguyen Thi Phuong Hoa/ Le Quang Dung
Student’s name: Nguyen Ngoc Quang
Student’s ID: 10200189
Table of Content

I. INTRODUCTION........................................................................................................................3
II. PART A: SCENARIO 1:............................................................................................................4
1. Strengths and weaknesses of different planning tools.............................................................4
1.1. Standard cost.....................................................................................................................4
1.2. Standard prices..................................................................................................................5
1.3. Budgets.............................................................................................................................5
1.4. Balanced Scorecard..........................................................................................................6
2. Cost calculation.......................................................................................................................7
2.1. Task 2................................................................................................................................7
2.2. Task 3 :.............................................................................................................................7
2.3. Task 4................................................................................................................................9
3. SWOT, PEST and balanced scorecard analysis of Coffeegreen Ltd.....................................10
3.1. Balanced Scorecard........................................................................................................10
3.2 PEST....................................................................................................................................11
3.2.1. Political........................................................................................................................11
3.2.2. Economic.....................................................................................................................11
3.2.3. Social...........................................................................................................................12
3.2.4. Technology..................................................................................................................12
3.3 SWOT..................................................................................................................................13
III. Part B: SCENERIO 2...............................................................................................................14
1. Task 1.....................................................................................................................................14
1. A strong ethical sense................................................................................................................15
2. Task 2.....................................................................................................................................15
3. Task 3.....................................................................................................................................16
IV. CONCLUSION.......................................................................................................................17
VII. REFERENCE LIST...............................................................................................................18

I. INTRODUCTION
For the majority of accountants, a key role is giving the manager a clear picture consists of the
information gathered, processed, and interpreted. The organization might employ several
approaches and planning tools to finish the work. This report will be divided into 2 parts. The
first part is dedicated to the use of planning tools in management accounting of Coffeegreen Ltd
and the other part is about suggesting different methods for both Galaxy Hotel and Coffeegreen
Ltd to help them deal with financial problems

II. PART A: SCENARIO 1:
1. Strengths and weaknesses of different planning tools
1.1. Standard cost
Standard costing is a method of allocating costs to a product based on an analysis of the
resources used to create it and the related costs. This is a common method that has been used by
many suppliers to see the differences between the estimated cost of the products manufactured
and the cost of the estimated goods sold (Standard costing - What is standard costing? n.d.).
According to Mr. Kieso and his partners wrote in “Intermediate accounting” in 2019, there are
several advantages and disadvantages for this method,
Advantage:
- Firms could enhance their cost management by setting higher targets for the expanding
type of spending.
- Helps the firm to be able to calculate the cost of the product precisely to make better
preparations.
- Assist in simplifying the process of predicting inventories, which is easier compared to
actual costing systems.
- Manages to help managers keep the cost down to maximize the profit
Disadvantage:
- It is difficult for managers to calculate the cost precisely since it requires them to analyze
a lot of data to assess cost performance.
- Due to the enormous amount of date needed to do analysis, it can put more pressure on
workers, which can lead to the reduce in productivity
- If the firm does not update the statistics regularly while preparing financial statements,
the actual expenses may fluctuate.
1.2. Standard prices
Standard price is a pre-determined standardized pricing for a good or service based on its current
value, cost of replacement, or an assessment of its strategic significance in the industry
(BusinessDictionary.com, 2020).