Value Chains in Woolworths Group Limited

Running head: MANAGEMENT ACCOUNTING
Management Accounting
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1MANAGEMENT ACCOUNTING
Table of Contents
Question 1: Value Chains................................................................................................................3
Question 2: Cost of Manufacturing Statement................................................................................5
Requirement 1:.............................................................................................................................5
Requirement 2:.............................................................................................................................6
Requirements 3 and 4:.................................................................................................................7
Question 3: Cost Allocation.............................................................................................................7
Requirement 1:.............................................................................................................................7
Requirement 2..............................................................................................................................8
Requirement 3:.............................................................................................................................8
Requirement 4:.............................................................................................................................8
Requirement 5:.............................................................................................................................9
Requirement 6:.............................................................................................................................9
Requirement 7:.............................................................................................................................9
Question 4: Job Costing.................................................................................................................11
Requirement 1:...........................................................................................................................11
Requirement 2:...........................................................................................................................11
Requirement 3:...........................................................................................................................11
Question 5: Process Costing..........................................................................................................11

2MANAGEMENT ACCOUNTING
Requirement 1:...........................................................................................................................12
Requirement 2:...........................................................................................................................12
References:....................................................................................................................................14

3MANAGEMENT ACCOUNTING
Question 1: Value Chains
For this section, Woolworths Group Limited has been chosen, as it is one of the leading
retailers operating in Australia. According to the mission statement of the organisation, it is
focused on producing and delivering superior products to the Australian consumers
(Woolworthsgroup.com.au, 2019). However, the organisation has received a number of
criticisms owing unsustainable transport solutions, restricted collaboration between suppliers,
lower visibility of operations and reporting abilities and restricted outbound/inbound integration.
As a result, Woolworths needs to enhance its service levels to stores, competitive edge along
with accomplishing supply chain sustainability. Therefore, the organisation has transformed its
supply chain management system with the help of Porter’s value chain analysis. Generally, it is
carrying out three main value-creating functions, which aid to engage in delivering its promises
as follows:
Inbound logistics:
In terms of value chain analysis, inbound logistics takes into account direct relationships
with the suppliers along with the activities to be received in stores and inputs of disseminations
(Darmawan, Putra & Wiguna, 2014). In case of Woolworths, the organisation is fundamentally a
retailer. The organisation is mainly engaged in control and distribution, instead of manufacturing
the products sold on different platforms. Under the building distribution network function, the
organisation contributes in two separate activities that take into account procurement and
logistics (Simatupang, Piboonrungroj & Williams, 2017).
Procurement and logistics: