Report about Planning Tools 2022
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10200517_NGUYEN THI NHAT UYEN_MA_A2.1
Management accounting systems of two firms, Coffeegreen Ltd. and Galaxy
0
Management accounting systems of two firms, Coffeegreen Ltd. and Galaxy
0
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Table of Contents
INTRODUCTION........................................................................................................2
SCENARIO 1...............................................................................................................3
1. Advantages and disadvantages of planning tools.............................................3
1.1. Standard costs and standard price.............................................................4
1.2. Budgets.....................................................................................................5
1.3. Balanced Scorecard (BSC)........................................................................5
2. Calculate the cost of the contract No. 348. Calculate the standard cost for 1 kg
of processed coffee and determine the selling price that helps Coffeegreen Ltd.
maximize its revenue in 2021....................................................................................6
2.1. Standard cost for 1 kg of processed coffee are as follows:........................7
2.2. Cost of the contract No. 348:....................................................................7
2.3. Determine the selling price that helps Coffeegreen Ltd. maximize its
revenue in 2021.....................................................................................................9
3. With the sales specified from the requirement 2, prepare the monthly budgets
for sales revenue, production volume, each production resource (raw materials,
labor, variable overheads).........................................................................................9
4. Evaluate how planning tools respond appropriately to solving financial
problems to lead Coffeegreen to sustainable success..............................................14
5. Apply PEST, SWOT and balanced scorecard analysis for Coffeegreen Ltd..16
5.1. PEST analysis.........................................................................................16
5.2. SWOT analysis.......................................................................................19
5.3. Balanced scorecard (BSC) analysis.........................................................21
SCENARIO 2.............................................................................................................. 21
1. Compare how Coffeegreen and Galaxy are adapting management accounting
systems to respond to financial problems................................................................21
2. Characteristics of efficient management accountants....................................23
3. Analyse and evaluate how in responding to financial problems, management
accounting can lead Coffeegreen and Galaxy to sustainable success......................23
3.1. Coffeegreen.............................................................................................23
3.2. Galaxy.....................................................................................................24
REFERENCES...........................................................................................................25
APPENDIX................................................................................................................. 27
1
INTRODUCTION........................................................................................................2
SCENARIO 1...............................................................................................................3
1. Advantages and disadvantages of planning tools.............................................3
1.1. Standard costs and standard price.............................................................4
1.2. Budgets.....................................................................................................5
1.3. Balanced Scorecard (BSC)........................................................................5
2. Calculate the cost of the contract No. 348. Calculate the standard cost for 1 kg
of processed coffee and determine the selling price that helps Coffeegreen Ltd.
maximize its revenue in 2021....................................................................................6
2.1. Standard cost for 1 kg of processed coffee are as follows:........................7
2.2. Cost of the contract No. 348:....................................................................7
2.3. Determine the selling price that helps Coffeegreen Ltd. maximize its
revenue in 2021.....................................................................................................9
3. With the sales specified from the requirement 2, prepare the monthly budgets
for sales revenue, production volume, each production resource (raw materials,
labor, variable overheads).........................................................................................9
4. Evaluate how planning tools respond appropriately to solving financial
problems to lead Coffeegreen to sustainable success..............................................14
5. Apply PEST, SWOT and balanced scorecard analysis for Coffeegreen Ltd..16
5.1. PEST analysis.........................................................................................16
5.2. SWOT analysis.......................................................................................19
5.3. Balanced scorecard (BSC) analysis.........................................................21
SCENARIO 2.............................................................................................................. 21
1. Compare how Coffeegreen and Galaxy are adapting management accounting
systems to respond to financial problems................................................................21
2. Characteristics of efficient management accountants....................................23
3. Analyse and evaluate how in responding to financial problems, management
accounting can lead Coffeegreen and Galaxy to sustainable success......................23
3.1. Coffeegreen.............................................................................................23
3.2. Galaxy.....................................................................................................24
REFERENCES...........................................................................................................25
APPENDIX................................................................................................................. 27
1
INTRODUCTION
I analyze and evaluate two management accounting systems of two firms, Coffeegreen Ltd.
and Galaxy, in this report. After that, I give some practical suggestions for improving their
accounting system to ensure long-term success.
2
I analyze and evaluate two management accounting systems of two firms, Coffeegreen Ltd.
and Galaxy, in this report. After that, I give some practical suggestions for improving their
accounting system to ensure long-term success.
2
SCENARIO 1
1. Advantages and disadvantages of planning tools.
Coffeegreen Ltd. is organized by Gia Lai Coffee Processing Company Ltd. and German
Drink Ltd. as a joint venture. Coffeegreen specializes in high-quality Arabica coffee mainly
for export to Germany. To maximize the profit, there are 4 planning tools applied namely
budgets, standard price, standard costs and balanced scorecard (BSC). Each planning tool has
its benefits and drawbacks for the company and its management accounting system, which
are analyzed below.
1.1. Standard costs and standard price.
Standards costing is a management accounting method that compares standard costs and
revenue to actual results to determine variances that can be used to motivate better efficiency.
By using standard costing system, the company can evaluate and make decision in the best
material and methods to maximize its profit. Furthermore, standard costs, prices, and budgets
are used as a benchmark for evaluating a company's actual costs, prices, and efficiency. As a
result, it is clear that by establishing standards, Coffeegreen will be able to manage potential
challenges, minimize total both production and non-production costs, and set more accurate
budgets.
According to Horngren et al (2015), the standard cost of a product or service needed for one
unit of input is a planned unit cost, which is calculated using the standard quantity of each
input and the standard price per input unit (standard price per kg of raw coffee bean or
standard price per labor hour). To set standard costs, the accountants have to set standard
prices which is carefully calculated prices that a company plans to pay for a unit of input in
production. Using standard costs supports Coffeegreen simplify the process of bookkeeping
in cost accounting management rather than FIFO, LIFO, etc. This planning tool – standard
costs have many advantages. Firstly, the company would gain better cost management by
setting standards for each form of expenses and each cost item (materials, labor, overhead)
incurred very complete and detailed, then identify challenges presented or variances which
are unexpected or unplanned things. Moreover, future actual costs could be close to standard
costs if Coffeegreen’s management sets acceptable cost standards and succeeds in controlling
manufacturing costs. As a result, managers can prepare more reliable budgets, estimate
expenses for bidding on work, and reduce unfavorable variances using standard costs. Top
management may benefit from a standard cost method when planning and making decisions.
The third benefit of using standard costs method is that the company can easily measure
3
1. Advantages and disadvantages of planning tools.
Coffeegreen Ltd. is organized by Gia Lai Coffee Processing Company Ltd. and German
Drink Ltd. as a joint venture. Coffeegreen specializes in high-quality Arabica coffee mainly
for export to Germany. To maximize the profit, there are 4 planning tools applied namely
budgets, standard price, standard costs and balanced scorecard (BSC). Each planning tool has
its benefits and drawbacks for the company and its management accounting system, which
are analyzed below.
1.1. Standard costs and standard price.
Standards costing is a management accounting method that compares standard costs and
revenue to actual results to determine variances that can be used to motivate better efficiency.
By using standard costing system, the company can evaluate and make decision in the best
material and methods to maximize its profit. Furthermore, standard costs, prices, and budgets
are used as a benchmark for evaluating a company's actual costs, prices, and efficiency. As a
result, it is clear that by establishing standards, Coffeegreen will be able to manage potential
challenges, minimize total both production and non-production costs, and set more accurate
budgets.
According to Horngren et al (2015), the standard cost of a product or service needed for one
unit of input is a planned unit cost, which is calculated using the standard quantity of each
input and the standard price per input unit (standard price per kg of raw coffee bean or
standard price per labor hour). To set standard costs, the accountants have to set standard
prices which is carefully calculated prices that a company plans to pay for a unit of input in
production. Using standard costs supports Coffeegreen simplify the process of bookkeeping
in cost accounting management rather than FIFO, LIFO, etc. This planning tool – standard
costs have many advantages. Firstly, the company would gain better cost management by
setting standards for each form of expenses and each cost item (materials, labor, overhead)
incurred very complete and detailed, then identify challenges presented or variances which
are unexpected or unplanned things. Moreover, future actual costs could be close to standard
costs if Coffeegreen’s management sets acceptable cost standards and succeeds in controlling
manufacturing costs. As a result, managers can prepare more reliable budgets, estimate
expenses for bidding on work, and reduce unfavorable variances using standard costs. Top
management may benefit from a standard cost method when planning and making decisions.
The third benefit of using standard costs method is that the company can easily measure
3
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inventory value because Coffeegreen produces tons of coffee. Therefore, Coffeegreen can
save time and costs in production process and inventory system, then minimize cost of
potential risks of inventories. Besides, standard costs also help to reduce manufacturing costs
including both direct material and labor costs. However, the weakness of applying standard
costs is that it is limited for the director to figure out what constitutes a material or irregular
variance. Additionally, it is also difficult to analyze and resolve negatively unexpected
variances. It may lead to inefficiencies hidden or low morale performance because workers
are not reported or disbuse between director and workers (Lumen Learning, 2021). As a
result, the budgetary slack could increase. Furthermore, the standard prices could negatively
influence on management accounting if the price of production input sharply changes in term
of season especially raw coffee bean. The final drawback of standard cost system is time-
consuming and costly. In general, it needs a lot of time and incurs many costs to set and
maintaining for establishing the standard costs and standard prices.
1.2. Budgets.
According to Horngren et al (2015), budget is (a) a quantitative representation of
management's proposed plan of action for a certain period of time, and (b) a tool for
coordinating what needs to be done to put the plan into action. A budget includes planned
revenue, expenses, assets, liabilities and cash flows. A major advantage of budget is the
ability to evaluate different options and carry out ‘what if’ analysis. By changing the value of
certain variables, management are able to assess the effect of potential changes in their
environment. Budgets could also be able to assist Coffeegreen in achieving its objectives in
the future and compel planning. During setting budgets, it is likely to be easier for the
accountants of Coffeegreen to communicate ideas with plans. After that, activities and
functional departments should coordinate to follow the budgets. In addition to budgets’
advantages, a budget provides a framework for responsibility accounting to necessary
reduction and efficiency improvement to maximize profit of Coffeegreen. The accountants
set budgets for the purpose to establish a system of control to manage all expenses in
production. Besides, the manager can motivate workers to improve their performance to
boost the profit of the company by reporting budgets to them. Nevertheless, budget tool also
has some drawbacks. Firstly, it seems to be very difficult to identity budgeted numbers as it
needs expert to predict those numbers. Therefore, it could be time-consuming and money-
consuming for this process. In addition, the coordination between functional departments
could be considered as an advantage but it is actually difficult to require that. Finally, budgets
4
save time and costs in production process and inventory system, then minimize cost of
potential risks of inventories. Besides, standard costs also help to reduce manufacturing costs
including both direct material and labor costs. However, the weakness of applying standard
costs is that it is limited for the director to figure out what constitutes a material or irregular
variance. Additionally, it is also difficult to analyze and resolve negatively unexpected
variances. It may lead to inefficiencies hidden or low morale performance because workers
are not reported or disbuse between director and workers (Lumen Learning, 2021). As a
result, the budgetary slack could increase. Furthermore, the standard prices could negatively
influence on management accounting if the price of production input sharply changes in term
of season especially raw coffee bean. The final drawback of standard cost system is time-
consuming and costly. In general, it needs a lot of time and incurs many costs to set and
maintaining for establishing the standard costs and standard prices.
1.2. Budgets.
According to Horngren et al (2015), budget is (a) a quantitative representation of
management's proposed plan of action for a certain period of time, and (b) a tool for
coordinating what needs to be done to put the plan into action. A budget includes planned
revenue, expenses, assets, liabilities and cash flows. A major advantage of budget is the
ability to evaluate different options and carry out ‘what if’ analysis. By changing the value of
certain variables, management are able to assess the effect of potential changes in their
environment. Budgets could also be able to assist Coffeegreen in achieving its objectives in
the future and compel planning. During setting budgets, it is likely to be easier for the
accountants of Coffeegreen to communicate ideas with plans. After that, activities and
functional departments should coordinate to follow the budgets. In addition to budgets’
advantages, a budget provides a framework for responsibility accounting to necessary
reduction and efficiency improvement to maximize profit of Coffeegreen. The accountants
set budgets for the purpose to establish a system of control to manage all expenses in
production. Besides, the manager can motivate workers to improve their performance to
boost the profit of the company by reporting budgets to them. Nevertheless, budget tool also
has some drawbacks. Firstly, it seems to be very difficult to identity budgeted numbers as it
needs expert to predict those numbers. Therefore, it could be time-consuming and money-
consuming for this process. In addition, the coordination between functional departments
could be considered as an advantage but it is actually difficult to require that. Finally, budgets
4
are set to always compare with actual costs so it sometimes lowers moral performance of
workers (Thakur, 2021).
1.3. Balanced Scorecard (BSC).
The final planning tool that Coffeegreen uses is balanced scorecard (BSC) (Figure 1)
Figure 1: BSC of Coffeegreen Ltd.
According to Horngren (2015), the balanced scorecard is a tool for applying an organization's
strategy that converts its mission and strategy into a series of performance measures. The
balanced scorecard isn't just concerned with meeting short-term goals and objectives. It
further emphasizes the non-financial objectives that an organization must accomplish in order
to fulfill and maintain its financial objectives. Based on the BSC, Coffeegreen have to
achieve 4 perspectives that are (1) financial perspective, (2) customer perspective, (3) internal
businesses, and (4) learning and growth. Using BSC brings many benefits to Coffeegreen.
The first approach is to compile many aspects of performance into the above-mentioned
report. Furthermore, BSC simply converts Coffeegreen's strategy into a basic collection of
performance measures. As a result, it assists the organization in determining if there is a
trade-off between measurement process. Additionally, BSC improves corporate coordination
and strategy by connecting to performance measurement. However, BSC also exists some
drawbacks. The first is that after applying a measure, the BSC report will disregard the time
required for the strategy to develop. Furthermore, the connection between performance
measures and financial outcomes, as well as the link between strategy and day-to-day
activities, is unclear. Any perspectives, such as the environment, are left out (Horngren et al,
2015).
5
workers (Thakur, 2021).
1.3. Balanced Scorecard (BSC).
The final planning tool that Coffeegreen uses is balanced scorecard (BSC) (Figure 1)
Figure 1: BSC of Coffeegreen Ltd.
According to Horngren (2015), the balanced scorecard is a tool for applying an organization's
strategy that converts its mission and strategy into a series of performance measures. The
balanced scorecard isn't just concerned with meeting short-term goals and objectives. It
further emphasizes the non-financial objectives that an organization must accomplish in order
to fulfill and maintain its financial objectives. Based on the BSC, Coffeegreen have to
achieve 4 perspectives that are (1) financial perspective, (2) customer perspective, (3) internal
businesses, and (4) learning and growth. Using BSC brings many benefits to Coffeegreen.
The first approach is to compile many aspects of performance into the above-mentioned
report. Furthermore, BSC simply converts Coffeegreen's strategy into a basic collection of
performance measures. As a result, it assists the organization in determining if there is a
trade-off between measurement process. Additionally, BSC improves corporate coordination
and strategy by connecting to performance measurement. However, BSC also exists some
drawbacks. The first is that after applying a measure, the BSC report will disregard the time
required for the strategy to develop. Furthermore, the connection between performance
measures and financial outcomes, as well as the link between strategy and day-to-day
activities, is unclear. Any perspectives, such as the environment, are left out (Horngren et al,
2015).
5
2. Calculate the cost of the contract No. 348. Calculate the standard cost for 1 kg of processed
coffee and determine the selling price that helps Coffeegreen Ltd. maximize its revenue in
2021.
- Standard costs of Coffeegreen for 1 kg of coffee are as follows:
Coffee bean costs: 1.4 kg * $2/kg = $2.8
Direct labor costs: 0.6 labor hours * $5 per hour = $3
Predetermined overhead rate: 100% of labor costs
- In March 2021:
Production volume 24 tons
Exported/ sales volume for the contract No. 348 15 tons
Ending inventory 4 tons
Actual overhead $70,000.
- The policy of Coffeegreen is that the over/under-allocation of overhead should be counted in
the cost of goods sold.
- Estimates for the market possibility of coffee in 2021 of Coffeegreen are below:
Quantity demanded (kg) Selling price ($/kg)
300,000 10
280,000 11
250,000 12
240,000 13
200,000 14
- Sales volume in the high season (Nov-Apr) = 150% x Sales volume in the low season (May-
Oct).
- Monthly production volume = 40% x Sales volume of next month + 60% x Sales volume of
current month.
- One kg of processed coffee requires 1.4 kg of raw coffee bean.
2.1. Standard cost for 1 kg of processed coffee are as follows:
Standard cost for 1 kg of processed coffee:
Materials: Coffee bean costs $2.8
Direct labor costs $3
Overhead cost = 100% of labor cost $3
Standard cost for 1 kg of processed coffee = $2.8 + $3 + $3 $8.8
6
coffee and determine the selling price that helps Coffeegreen Ltd. maximize its revenue in
2021.
- Standard costs of Coffeegreen for 1 kg of coffee are as follows:
Coffee bean costs: 1.4 kg * $2/kg = $2.8
Direct labor costs: 0.6 labor hours * $5 per hour = $3
Predetermined overhead rate: 100% of labor costs
- In March 2021:
Production volume 24 tons
Exported/ sales volume for the contract No. 348 15 tons
Ending inventory 4 tons
Actual overhead $70,000.
- The policy of Coffeegreen is that the over/under-allocation of overhead should be counted in
the cost of goods sold.
- Estimates for the market possibility of coffee in 2021 of Coffeegreen are below:
Quantity demanded (kg) Selling price ($/kg)
300,000 10
280,000 11
250,000 12
240,000 13
200,000 14
- Sales volume in the high season (Nov-Apr) = 150% x Sales volume in the low season (May-
Oct).
- Monthly production volume = 40% x Sales volume of next month + 60% x Sales volume of
current month.
- One kg of processed coffee requires 1.4 kg of raw coffee bean.
2.1. Standard cost for 1 kg of processed coffee are as follows:
Standard cost for 1 kg of processed coffee:
Materials: Coffee bean costs $2.8
Direct labor costs $3
Overhead cost = 100% of labor cost $3
Standard cost for 1 kg of processed coffee = $2.8 + $3 + $3 $8.8
6
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2.2. Cost of the contract No. 348:
Notes:
- Sales volume in March 2021 = Production volume - Ending inventory volume
- Overallocated overhead = Applied overhead – Actual overhead (>0)
- Total applied overhead = Overhead cost for 1 kg of processed coffee x Production volume
- Since the over allocation of overhead should be counted in the costs of goods sold,
overallocated overhead is counted for total sale volume in March 2021 that is 20,000 kg of
coffee.
- Sales volume of the contract No. 348 = 15 tons = 15,000 kg.
- Total production costs for 1 kg of coffee of the contract No. 348 = Direct materials costs +
Direct labor costs + Overhead cost.
- The over-allocated overhead is counted Cost of No. 348 sold = over-allocated overhead for
1 kg of coffee sold x Sale volume of the contract No. 348
- Total production costs for the contract No. 348 = Total production costs for 1 kg of coffee x
Sale volume of the contract No. 348.
- Total cost of goods sold for the contract No. 348 = Total production costs for the contract No.
348 - The over-allocated overhead is counted Cost of No. 348 sold
Sales volume in March 2021
Production volume = 24 tons 24,000 kg
Ending inventory volume = 4 tons 4,000 kg
Total sales volume in March 2021 = 24 tons – 4 tons 20,000 kg
The over-allocated overhead is counted in the Cost of goods sold
(= $72,000 - $70,000)
$2,000
Actual overhead $70,000
Applied overhead = $3 x 24,000 $72,000
The over-allocated overhead for 1 kg of coffee sold =
$2,000/20,000
$0.1
Compute COST OF GOODS SOLD of the contract No. 348
Production costs for 1 kg of coffee of the contract No. 348
7
Notes:
- Sales volume in March 2021 = Production volume - Ending inventory volume
- Overallocated overhead = Applied overhead – Actual overhead (>0)
- Total applied overhead = Overhead cost for 1 kg of processed coffee x Production volume
- Since the over allocation of overhead should be counted in the costs of goods sold,
overallocated overhead is counted for total sale volume in March 2021 that is 20,000 kg of
coffee.
- Sales volume of the contract No. 348 = 15 tons = 15,000 kg.
- Total production costs for 1 kg of coffee of the contract No. 348 = Direct materials costs +
Direct labor costs + Overhead cost.
- The over-allocated overhead is counted Cost of No. 348 sold = over-allocated overhead for
1 kg of coffee sold x Sale volume of the contract No. 348
- Total production costs for the contract No. 348 = Total production costs for 1 kg of coffee x
Sale volume of the contract No. 348.
- Total cost of goods sold for the contract No. 348 = Total production costs for the contract No.
348 - The over-allocated overhead is counted Cost of No. 348 sold
Sales volume in March 2021
Production volume = 24 tons 24,000 kg
Ending inventory volume = 4 tons 4,000 kg
Total sales volume in March 2021 = 24 tons – 4 tons 20,000 kg
The over-allocated overhead is counted in the Cost of goods sold
(= $72,000 - $70,000)
$2,000
Actual overhead $70,000
Applied overhead = $3 x 24,000 $72,000
The over-allocated overhead for 1 kg of coffee sold =
$2,000/20,000
$0.1
Compute COST OF GOODS SOLD of the contract No. 348
Production costs for 1 kg of coffee of the contract No. 348
7
Direct materials costs : Coffee bean costs $2.8
Direct labor costs $3
Overhead cost = 100% of labor cost $3
Total production costs for 1 kg of coffee of the contract No.
348 = $2.8 + 3 + 3
$8.8
Sale volume of the contract No. 348 = 15 tons 15,000 kg
The over-allocated overhead is counted Cost of No. 348 sold =
$0.1 x 15,000
$1,500
Total production costs for the contract No. 348 = $8.8 x 15,000 $132,000
Total cost of goods sold for the contract No. 348 = $132,000 –
$1,500
$130,500
2.3. Determine the selling price that helps Coffeegreen Ltd. maximize its revenue in 2021.
Estimates for the market possibility of coffee in 2021 of Coffeegreen are below:
Quantity demanded (kg) Selling price ($/kg) Revenue ($)
300,000 10 3,000,000
280,000 11 3,080,000
250,000 12 3,000,000
240,000 13 (MAX) 3,120,000
200,000 14 2,800,000
Note: Revenue = Quantity demanded x Selling price
In conclusion, as can be seen from the table above, if Coffeegreen Ltd. wants to maximize its
revenue in 2021, the selling price for 1 kg of coffee should be $13/kg along with 240,000 kg
of coffee for quantity demanded. At this selling price, the sales revenue would maximize and
equal to $3,120,000.
3. With the sales specified from the requirement 2, prepare the monthly budgets for sales
revenue, production volume, each production resource (raw materials, labor, variable
overheads).
Monthly budget in 2021
8
Direct labor costs $3
Overhead cost = 100% of labor cost $3
Total production costs for 1 kg of coffee of the contract No.
348 = $2.8 + 3 + 3
$8.8
Sale volume of the contract No. 348 = 15 tons 15,000 kg
The over-allocated overhead is counted Cost of No. 348 sold =
$0.1 x 15,000
$1,500
Total production costs for the contract No. 348 = $8.8 x 15,000 $132,000
Total cost of goods sold for the contract No. 348 = $132,000 –
$1,500
$130,500
2.3. Determine the selling price that helps Coffeegreen Ltd. maximize its revenue in 2021.
Estimates for the market possibility of coffee in 2021 of Coffeegreen are below:
Quantity demanded (kg) Selling price ($/kg) Revenue ($)
300,000 10 3,000,000
280,000 11 3,080,000
250,000 12 3,000,000
240,000 13 (MAX) 3,120,000
200,000 14 2,800,000
Note: Revenue = Quantity demanded x Selling price
In conclusion, as can be seen from the table above, if Coffeegreen Ltd. wants to maximize its
revenue in 2021, the selling price for 1 kg of coffee should be $13/kg along with 240,000 kg
of coffee for quantity demanded. At this selling price, the sales revenue would maximize and
equal to $3,120,000.
3. With the sales specified from the requirement 2, prepare the monthly budgets for sales
revenue, production volume, each production resource (raw materials, labor, variable
overheads).
Monthly budget in 2021
8
Sales revenue
budget
Sales
volume
budget
Sales
volume
budget
(kg)
Sales
revenue
budget
Sales
revenue
budget ($)
Jan 1.5X
24,0
00 1.5Y
312,0
00
Feb 1.5X
24,0
00 1.5Y
312,0
00
Mar 1.5X
24,0
00 1.5Y
312,0
00
Apr 1.5X
24,0
00 1.5Y
312,0
00
May X
16,0
00 Y
208,0
00
Jun X
16,0
00 Y
208,0
00
Jul X
16,0
00 Y
208,0
00
Aug X
16,0
00 Y
208,0
00
Sep X
16,0
00 Y
208,0
00
Oct X
16,0
00 Y
208,0
00
Nov 1.5X
24,0
00 1.5Y
312,0
00
Dec 1.5X
24,0
00 1.5Y
312,0
00
TOTA
L 15X
240,0
00 15Y
3,12
0,000
9
budget
Sales
volume
budget
Sales
volume
budget
(kg)
Sales
revenue
budget
Sales
revenue
budget ($)
Jan 1.5X
24,0
00 1.5Y
312,0
00
Feb 1.5X
24,0
00 1.5Y
312,0
00
Mar 1.5X
24,0
00 1.5Y
312,0
00
Apr 1.5X
24,0
00 1.5Y
312,0
00
May X
16,0
00 Y
208,0
00
Jun X
16,0
00 Y
208,0
00
Jul X
16,0
00 Y
208,0
00
Aug X
16,0
00 Y
208,0
00
Sep X
16,0
00 Y
208,0
00
Oct X
16,0
00 Y
208,0
00
Nov 1.5X
24,0
00 1.5Y
312,0
00
Dec 1.5X
24,0
00 1.5Y
312,0
00
TOTA
L 15X
240,0
00 15Y
3,12
0,000
9
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Production budget
Production
volume (kg)
Jan 24,000
Feb 24,000
Mar 24,000
Apr 20,800
May 16,000
Jun 16,000
Jul 16,000
Aug 16,000
Sep 16,000
Oct 19,200
Nov 24,000
Dec 24,000
TOTAL 240,000
Direct material
budget
Raw coffee
bean used
for 1 kg of
processed
coffee (kg)
Total
material
used (kg)
Material
cost
per kg ($)
Total
material
cost ($)
Jan 1.4
33,6
00 2
67,2
00
Feb 1.4
33,6
00 2
67,2
00
Mar 1.4
33,6
00 2
67,2
00
Apr 1.4
29,1
20 2
58,2
40
May 1.4
22,4
00 2
44,8
00
Jun 1.4 22,4 2 44,8
10
Production
volume (kg)
Jan 24,000
Feb 24,000
Mar 24,000
Apr 20,800
May 16,000
Jun 16,000
Jul 16,000
Aug 16,000
Sep 16,000
Oct 19,200
Nov 24,000
Dec 24,000
TOTAL 240,000
Direct material
budget
Raw coffee
bean used
for 1 kg of
processed
coffee (kg)
Total
material
used (kg)
Material
cost
per kg ($)
Total
material
cost ($)
Jan 1.4
33,6
00 2
67,2
00
Feb 1.4
33,6
00 2
67,2
00
Mar 1.4
33,6
00 2
67,2
00
Apr 1.4
29,1
20 2
58,2
40
May 1.4
22,4
00 2
44,8
00
Jun 1.4 22,4 2 44,8
10
00 00
Jul 1.4
22,4
00 2
44,8
00
Aug 1.4
22,4
00 2
44,8
00
Sep 1.4
22,4
00 2
44,8
00
Oct 1.4
26,8
80 2
53,7
60
Nov 1.4
33,6
00 2
67,2
00
Dec 1.4
33,6
00 2
67,2
00
TOTA
L
336,0
00
672,0
00
Direct labor budget Labor hour
for 1 kg
processed
coffee
(hours)
Total
labor
hours
(hours)
Labor cost
per hour
($)
Total labor
cost ($)
Jan 0.6
14,4
00 5
72,0
00
Feb 0.6
14,4
00 5
72,0
00
Mar 0.6
14,4
00 5
72,0
00
Apr 0.6
12,4
80 5
62,4
00
May 0.6 9,6
00
5 48,0
00
11
Jul 1.4
22,4
00 2
44,8
00
Aug 1.4
22,4
00 2
44,8
00
Sep 1.4
22,4
00 2
44,8
00
Oct 1.4
26,8
80 2
53,7
60
Nov 1.4
33,6
00 2
67,2
00
Dec 1.4
33,6
00 2
67,2
00
TOTA
L
336,0
00
672,0
00
Direct labor budget Labor hour
for 1 kg
processed
coffee
(hours)
Total
labor
hours
(hours)
Labor cost
per hour
($)
Total labor
cost ($)
Jan 0.6
14,4
00 5
72,0
00
Feb 0.6
14,4
00 5
72,0
00
Mar 0.6
14,4
00 5
72,0
00
Apr 0.6
12,4
80 5
62,4
00
May 0.6 9,6
00
5 48,0
00
11
Jun 0.6
9,6
00 5
48,0
00
Jul 0.6
9,6
00 5
48,0
00
Aug 0.6
9,6
00 5
48,0
00
Sep 0.6
9,6
00 5
48,0
00
Oct 0.6
11,5
20 5
57,6
00
Nov 0.6
14,4
00 5
72,0
00
Dec 0.6
14,4
00 5
72,0
00
TOTA
L
144,0
00
720,0
00
Variable overhead
budget
Total overhead cost (S)
= Total labor cost
Jan 72,000
Feb 72,000
Mar 72,000
Apr 62,400
May 48,000
Jun 48,000
Jul 48,000
Aug 48,000
Sep 48,000
Oct 57,600
Nov 72,000
Dec 72,000
TOTAL 720,000
12
9,6
00 5
48,0
00
Jul 0.6
9,6
00 5
48,0
00
Aug 0.6
9,6
00 5
48,0
00
Sep 0.6
9,6
00 5
48,0
00
Oct 0.6
11,5
20 5
57,6
00
Nov 0.6
14,4
00 5
72,0
00
Dec 0.6
14,4
00 5
72,0
00
TOTA
L
144,0
00
720,0
00
Variable overhead
budget
Total overhead cost (S)
= Total labor cost
Jan 72,000
Feb 72,000
Mar 72,000
Apr 62,400
May 48,000
Jun 48,000
Jul 48,000
Aug 48,000
Sep 48,000
Oct 57,600
Nov 72,000
Dec 72,000
TOTAL 720,000
12
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Notes:
Sales revenue budget:
- Sales volume in the high season (Nov-Apr) = 150% x Sales volume in the low season
(May-Oct)
Sales volume in low season = X; Sales revenue in low season = Y
Sales volume in high season = 1.5X; Sales revenue in high season = 1.5Y
- Total sales volume in 2021 = 6 x X + 6 x 1.5X = 15X = 24 tons = 24,000 kg
X = 16,000; 1.5X = 24,000
- Total sales revenue = 15Y = Sales volume x Selling price = 24,000 x $13 =
$3,120,00.
Y=208,000; 1.5Y=312,000
Production volume budget:
- Monthly production volume = 40% x Sales volume of next month + 60% x Sales
volume of current month.
Example: Production volume in April = 40% x Sale volume of May + 60% x
Sales volume of April = 40% x 16,000 + 60% x 24,000 = 20,800.
- Because the production volume based on both the sales volume of next month and
current month, and the monthly sales volume based on high or low season. Besides,
the sales volume in December 2021 and January 2022 are belonged to high season, so
the sales volume in December 2021 equals to sales volume in January 2022 and
equals to 24,000 kg of coffee.
Sales volume of December 2021 = 40% x Sales volume of Jan 2022 + 60% x
Sales volume of December 2021 = 40% x 24,000 + 60% x 24,000 = 24,000
(kg).
Direct material budget:
- Total material used = Production volume x Raw coffee bean used for 1 kg of
processed coffee.
- Total material cost ($) = Total material used (kg) x Material cost per kg ($).
Direct labor budget:
13
Sales revenue budget:
- Sales volume in the high season (Nov-Apr) = 150% x Sales volume in the low season
(May-Oct)
Sales volume in low season = X; Sales revenue in low season = Y
Sales volume in high season = 1.5X; Sales revenue in high season = 1.5Y
- Total sales volume in 2021 = 6 x X + 6 x 1.5X = 15X = 24 tons = 24,000 kg
X = 16,000; 1.5X = 24,000
- Total sales revenue = 15Y = Sales volume x Selling price = 24,000 x $13 =
$3,120,00.
Y=208,000; 1.5Y=312,000
Production volume budget:
- Monthly production volume = 40% x Sales volume of next month + 60% x Sales
volume of current month.
Example: Production volume in April = 40% x Sale volume of May + 60% x
Sales volume of April = 40% x 16,000 + 60% x 24,000 = 20,800.
- Because the production volume based on both the sales volume of next month and
current month, and the monthly sales volume based on high or low season. Besides,
the sales volume in December 2021 and January 2022 are belonged to high season, so
the sales volume in December 2021 equals to sales volume in January 2022 and
equals to 24,000 kg of coffee.
Sales volume of December 2021 = 40% x Sales volume of Jan 2022 + 60% x
Sales volume of December 2021 = 40% x 24,000 + 60% x 24,000 = 24,000
(kg).
Direct material budget:
- Total material used = Production volume x Raw coffee bean used for 1 kg of
processed coffee.
- Total material cost ($) = Total material used (kg) x Material cost per kg ($).
Direct labor budget:
13
- Total labor hours = Labor hour for 1 kg of processed coffee x Production volume.
- Total labor cost ($) = Total labor hours x Labor cost per hour ($).
Variable overhead budget:
- Total overhead cost = 100% Total labor cost.
4. Evaluate how planning tools respond appropriately to solving financial problems to lead
Coffeegreen to sustainable success.
At the end of March 2021, Coffeegreen's actual result was as follows: The purchasing price
of coffee beans was $2.3/kg of coffee bean (>$2), the actual labor hour was 0.75 labor
hours/kg of processed coffee (>0.6), and everything else went as expected. As can be clearly
seen that the actual purchasing price and labor hour exceed the budgeted numbers, which are
$2 and 0.6 hours respectively. As a management accountant for Coffeegreen Ltd., I would
evaluate how planning tools respond the company's performance in March 2021 and write
reports for management highlighting potential challenges that Coffeegreen would encounter
as a result of high prices for coffee bean materials and inefficiency among processing
employees, then recommend possible financial remedies for the next months to bring
Coffeegreen to a more sustainable and long-term success.
Firstly, the purchasing price of coffee beans actually exceed the standard price because of
many reasons. According to Topica (2018), the first one could be that purchased raw
materials (coffee bean) require high quality, then the price would be higher than planned. The
rise in raw material prices might also be attributable to changes in actual market coffee bean
prices owing to factors such as inflation. Another reason could be materials shortages due to
transportation, loss or other objective reasons. It leads to higher average price for 1 kg of raw
coffee bean. During the production process, urgent and unexpected purchases of raw
materials may arise due to the purchase of small quantities of coffee bean. The last possible
reason is collusion between suppliers and purchasing manager, which leads to price squeeze
and higher price of coffee bean. To keep the price of coffee beans down, the company
occasionally has to pay a kickback. Because of the above causes, the following are some
feasible solutions to those potential problems. Firstly, the company should concentrate on
replanning purchasing control system to monitor the quantity of purchase as well as urgent
problems (Topica, 2018). If the current supplier provides high-quality materials but very high
price, the purchasing manager could find other materials with reasonable to substitute. As for
the reason of collusion between purchasing manager and supplier, the company should issue
14
- Total labor cost ($) = Total labor hours x Labor cost per hour ($).
Variable overhead budget:
- Total overhead cost = 100% Total labor cost.
4. Evaluate how planning tools respond appropriately to solving financial problems to lead
Coffeegreen to sustainable success.
At the end of March 2021, Coffeegreen's actual result was as follows: The purchasing price
of coffee beans was $2.3/kg of coffee bean (>$2), the actual labor hour was 0.75 labor
hours/kg of processed coffee (>0.6), and everything else went as expected. As can be clearly
seen that the actual purchasing price and labor hour exceed the budgeted numbers, which are
$2 and 0.6 hours respectively. As a management accountant for Coffeegreen Ltd., I would
evaluate how planning tools respond the company's performance in March 2021 and write
reports for management highlighting potential challenges that Coffeegreen would encounter
as a result of high prices for coffee bean materials and inefficiency among processing
employees, then recommend possible financial remedies for the next months to bring
Coffeegreen to a more sustainable and long-term success.
Firstly, the purchasing price of coffee beans actually exceed the standard price because of
many reasons. According to Topica (2018), the first one could be that purchased raw
materials (coffee bean) require high quality, then the price would be higher than planned. The
rise in raw material prices might also be attributable to changes in actual market coffee bean
prices owing to factors such as inflation. Another reason could be materials shortages due to
transportation, loss or other objective reasons. It leads to higher average price for 1 kg of raw
coffee bean. During the production process, urgent and unexpected purchases of raw
materials may arise due to the purchase of small quantities of coffee bean. The last possible
reason is collusion between suppliers and purchasing manager, which leads to price squeeze
and higher price of coffee bean. To keep the price of coffee beans down, the company
occasionally has to pay a kickback. Because of the above causes, the following are some
feasible solutions to those potential problems. Firstly, the company should concentrate on
replanning purchasing control system to monitor the quantity of purchase as well as urgent
problems (Topica, 2018). If the current supplier provides high-quality materials but very high
price, the purchasing manager could find other materials with reasonable to substitute. As for
the reason of collusion between purchasing manager and supplier, the company should issue
14
stricter penalties and increase internal audit to minimize this situation (Giao trinh ke toan
quan tri, 2015).
Second problem is that the actual labor hour is higher than planned. The difference in labor
hours is due to many reasons. Coffeegreen, in particular, used low-skilled or under-skilled
workers, who took longer hours to finish production procedures. There may be a lack of
monitoring to supervise their performance while they are working, lowering their
productivity and profit. Another cause might be that the machines were not adequately
maintained by Coffeegreen's maintenance staffs or the machines were too old, resulting in
more manufacturing work time than was expected. An inefficient production scheduler or a
lack of thorough analysis of budgeted time standards might result in over-budgeted work
hours. There are also several solutions for maintaining the labor hour during production.
Managers could provide additional training to employees prior to starting work or improve
the recruiting process. If the supplies are of low quality, the purchasing manager should
tighten quality control over the materials that are purchased and stored. The company should
increase supervision to control employees’ performance and upgrade or replace the machines
to improve workers’ performance and productivity (Horngren, 2015). In addition,
Coffeegreen may tighten its production schedule in order to reduce labor hours in
manufacturing.
5. Apply PEST, SWOT and balanced scorecard analysis for Coffeegreen Ltd.
5.1. PEST analysis.
5.1.1. Political & Legal factors.
Vietnam is regarded as one of the most politically stable countries in the world. According to
the Institute of Economics and Peace's (IEP) 2019 Global Peace Index (GPI) study, Vietnam
got 1,877 points, ranking 57th out of 163 nations around the world (Figure 1&2) and belongs
to the group with a high peace index. CEOs' investment decisions are heavily influenced by
political stability. This is a good condition for strengthening the Vietnamese coffee industry
and attracting international investment. Aside from a stable political-legal framework, the
Vietnamese government has a number of policies in aimed at promoting coffee production
and attract foreign investment (Kho tri thuc so, 2021). One of the advantages is that 3e
Vietnamese Party and State's economic reform policies have produced a favorable
environment for the growth of coffee production. The government issued Resolution
09/2000/NQ/CP, which defines the planning and development orientation of our country's
coffee trees through 2010. As a result, beginning in 2003, coffee production must adhere to
15
quan tri, 2015).
Second problem is that the actual labor hour is higher than planned. The difference in labor
hours is due to many reasons. Coffeegreen, in particular, used low-skilled or under-skilled
workers, who took longer hours to finish production procedures. There may be a lack of
monitoring to supervise their performance while they are working, lowering their
productivity and profit. Another cause might be that the machines were not adequately
maintained by Coffeegreen's maintenance staffs or the machines were too old, resulting in
more manufacturing work time than was expected. An inefficient production scheduler or a
lack of thorough analysis of budgeted time standards might result in over-budgeted work
hours. There are also several solutions for maintaining the labor hour during production.
Managers could provide additional training to employees prior to starting work or improve
the recruiting process. If the supplies are of low quality, the purchasing manager should
tighten quality control over the materials that are purchased and stored. The company should
increase supervision to control employees’ performance and upgrade or replace the machines
to improve workers’ performance and productivity (Horngren, 2015). In addition,
Coffeegreen may tighten its production schedule in order to reduce labor hours in
manufacturing.
5. Apply PEST, SWOT and balanced scorecard analysis for Coffeegreen Ltd.
5.1. PEST analysis.
5.1.1. Political & Legal factors.
Vietnam is regarded as one of the most politically stable countries in the world. According to
the Institute of Economics and Peace's (IEP) 2019 Global Peace Index (GPI) study, Vietnam
got 1,877 points, ranking 57th out of 163 nations around the world (Figure 1&2) and belongs
to the group with a high peace index. CEOs' investment decisions are heavily influenced by
political stability. This is a good condition for strengthening the Vietnamese coffee industry
and attracting international investment. Aside from a stable political-legal framework, the
Vietnamese government has a number of policies in aimed at promoting coffee production
and attract foreign investment (Kho tri thuc so, 2021). One of the advantages is that 3e
Vietnamese Party and State's economic reform policies have produced a favorable
environment for the growth of coffee production. The government issued Resolution
09/2000/NQ/CP, which defines the planning and development orientation of our country's
coffee trees through 2010. As a result, beginning in 2003, coffee production must adhere to
15
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the government's master plan and strategy. The country has overcome the state of
spontaneous thinking and following the movement in terms of area, diversity, production, and
quality. Farmers are so encouraged to cultivate coffee with confidence. In addition, when the
price of coffee on the coffee market is low, the government has a policy to support prices
(Foodworld, 2020). Furthermore, after signing the CPTPP and EVFTA in 2018, exports to
other nations have gotten simpler, and market penetration has gotten quicker and easier.
Thus, tariffs for exporting coffee may be close to 0%, according to My Hang (2020). This is a
significant advantage for Coffeegreen Ltd. to reduce export tax expenses because its product
is mainly exported to Germany. In addition to the above policies, there are a lot of promotion
from the country. According to My Hang (2020), With an export company like Coffee Green
Ltd., The government has aided the establishment of factories near to the production area as
well as the port to ease both production and export. As a result, it has helped Coffeegreen in
lowering the risk costs associated with coffee quality and export expenses.
5.1.2. Economic.
a. GDP in Vietnam and Germany.
Despite being heavily impacted by Covid-19, Wikipedia (2020) estimates that Vietnam's
GDP per capita reached $2,779 in 2020, representing a 2.91% growth rate. More precisely,
the agriculture sector's GDP growth rate was 14.85 %, which is a extremely low rate of
econimic growth. Due to people’s low income, this reduced local people's demand for coffee,
which adversed to Coffeegreen's profit in the domestic market.
According to Statista (2021), despite also being substantially impacted by Covid-19,
Germany's gross domestic product (GDP) in 2020 was 3,332.23 billion euros. As a result,
Germany is among the top five nations in the world in terms of GDP. As a result, personal
income in Germany is so high, which positively influences on Coffeegreen because the
mainly amount of coffee bean is exported to Germany.
b. Interest rate in Vietnam.
From 2000 to 2021, the average interest rate in Vietnam was 7.06 percent, with a high of 15%
in June 2008 and a low of 4% in September 2020. (Trading Economic, 2021). (Figure 3) On
October 1st, 2020, the State Bank of Vietnam (SBV) announced its fourth interest rate drop
of the year to aid the economy's recovery from the effects of Covid-19. As a consequence of
the resolution, the SBV would reduce the overall credit restriction for short-term lending
from 5% to 4.5 percent, with the goal of assisting businesses in manufacturing, high-tech
16
spontaneous thinking and following the movement in terms of area, diversity, production, and
quality. Farmers are so encouraged to cultivate coffee with confidence. In addition, when the
price of coffee on the coffee market is low, the government has a policy to support prices
(Foodworld, 2020). Furthermore, after signing the CPTPP and EVFTA in 2018, exports to
other nations have gotten simpler, and market penetration has gotten quicker and easier.
Thus, tariffs for exporting coffee may be close to 0%, according to My Hang (2020). This is a
significant advantage for Coffeegreen Ltd. to reduce export tax expenses because its product
is mainly exported to Germany. In addition to the above policies, there are a lot of promotion
from the country. According to My Hang (2020), With an export company like Coffee Green
Ltd., The government has aided the establishment of factories near to the production area as
well as the port to ease both production and export. As a result, it has helped Coffeegreen in
lowering the risk costs associated with coffee quality and export expenses.
5.1.2. Economic.
a. GDP in Vietnam and Germany.
Despite being heavily impacted by Covid-19, Wikipedia (2020) estimates that Vietnam's
GDP per capita reached $2,779 in 2020, representing a 2.91% growth rate. More precisely,
the agriculture sector's GDP growth rate was 14.85 %, which is a extremely low rate of
econimic growth. Due to people’s low income, this reduced local people's demand for coffee,
which adversed to Coffeegreen's profit in the domestic market.
According to Statista (2021), despite also being substantially impacted by Covid-19,
Germany's gross domestic product (GDP) in 2020 was 3,332.23 billion euros. As a result,
Germany is among the top five nations in the world in terms of GDP. As a result, personal
income in Germany is so high, which positively influences on Coffeegreen because the
mainly amount of coffee bean is exported to Germany.
b. Interest rate in Vietnam.
From 2000 to 2021, the average interest rate in Vietnam was 7.06 percent, with a high of 15%
in June 2008 and a low of 4% in September 2020. (Trading Economic, 2021). (Figure 3) On
October 1st, 2020, the State Bank of Vietnam (SBV) announced its fourth interest rate drop
of the year to aid the economy's recovery from the effects of Covid-19. As a consequence of
the resolution, the SBV would reduce the overall credit restriction for short-term lending
from 5% to 4.5 percent, with the goal of assisting businesses in manufacturing, high-tech
16
sectors, exporting, and a range of other fields (Ngoc Thuy, 2020). Owing to low interest rate
in Vietnam, it would assist Coffeegreen in lowering the cost of its bank credit. Furthermore,
the market price of coffee has decreased, making it easier to compete in both the domestic
and international coffee markets.
c. Exchange rate.
According to Dang Ha My (2020), The State Bank of Vietnam (SBV) reiterated its position
that foreign currency buying/selling prices would flexibly operate in the market from now
until the end of 2020 to stabilize the exchange rate in the face of international pressure, with
the message "not to be passive in the face of international changes and in keeping with the
macro-balance." Therefore, the exchange rate EUR/VND seems to be stable in Vietnam.
Coffeegreen does not need to be time-consuming and money-consuming with derivative
financial instruments as a result of this, which would lower selling price of coffee and then
boost its profit.
d. Inflation rate.
According to World Bank, Vietnam seems to be desinflation. The annual inflation rate in
Vietnam rose to 2.7 percent in April 2021, the highest level since September, from 1.16
percent the previous month, owing mostly to a greater rise in housing and building material
prices (2.78 percent vs 0.82 percent in March). Consumer prices index (CPI) declined 0.04
percent month over month in April, following a 0.27 percent decline in March. Due to low
inflation rate, Coffeegreen eases to compete in coffee market in both domestic and
international industry. However, the price of some raw materials increased sharply, which
negatively affected Coffeegreen. In particular, to assure profitability, Coffeegreen may need
to boost labor and equipment productivity in order to reduce input costs.
e. Threat of new entrants.
In coffee industry, importers' (like Germany) stringent food safety and sanitation
requirements, as well as advanced technology, are barriers to entry into the coffee processing
industry. Aside from new domestic competitors, Coffeegreen should also consider potential
international rivals in Brazil and other major coffee exporters to Germany. In general, new
domestic rivals to Coffeegreen pose a low threat, but international competitors continue to
compete intensely in the coffee export industry. As a result, in order to satisfy the demands of
potential global markets, Vietnamese coffee in general, and Coffeegreen in particular, must
17
in Vietnam, it would assist Coffeegreen in lowering the cost of its bank credit. Furthermore,
the market price of coffee has decreased, making it easier to compete in both the domestic
and international coffee markets.
c. Exchange rate.
According to Dang Ha My (2020), The State Bank of Vietnam (SBV) reiterated its position
that foreign currency buying/selling prices would flexibly operate in the market from now
until the end of 2020 to stabilize the exchange rate in the face of international pressure, with
the message "not to be passive in the face of international changes and in keeping with the
macro-balance." Therefore, the exchange rate EUR/VND seems to be stable in Vietnam.
Coffeegreen does not need to be time-consuming and money-consuming with derivative
financial instruments as a result of this, which would lower selling price of coffee and then
boost its profit.
d. Inflation rate.
According to World Bank, Vietnam seems to be desinflation. The annual inflation rate in
Vietnam rose to 2.7 percent in April 2021, the highest level since September, from 1.16
percent the previous month, owing mostly to a greater rise in housing and building material
prices (2.78 percent vs 0.82 percent in March). Consumer prices index (CPI) declined 0.04
percent month over month in April, following a 0.27 percent decline in March. Due to low
inflation rate, Coffeegreen eases to compete in coffee market in both domestic and
international industry. However, the price of some raw materials increased sharply, which
negatively affected Coffeegreen. In particular, to assure profitability, Coffeegreen may need
to boost labor and equipment productivity in order to reduce input costs.
e. Threat of new entrants.
In coffee industry, importers' (like Germany) stringent food safety and sanitation
requirements, as well as advanced technology, are barriers to entry into the coffee processing
industry. Aside from new domestic competitors, Coffeegreen should also consider potential
international rivals in Brazil and other major coffee exporters to Germany. In general, new
domestic rivals to Coffeegreen pose a low threat, but international competitors continue to
compete intensely in the coffee export industry. As a result, in order to satisfy the demands of
potential global markets, Vietnamese coffee in general, and Coffeegreen in particular, must
17
increase quality, ensure pesticide residues, and ensure food hygiene and safety (Nguyen
Trong Khuong, 2017).
5.1.3. Social.
Coffeegreen's goods are sold both domestically and internationally, therefore the social
factor in Vietnam and Germany are crucial to the company's growth. According to Khi tri
thuc so (2021), in Vietnam, customers nowadays expect a better level of coffee quality and
put higher demands on the seller. This has recently changed as Vietnamese consumers have
become more concerned about their health and the environment, and are ready to pay more
for high-quality, environmentally friendly coffee. Since the products of Coffeegreen are
Arabica coffee with very high quality, social tendency seems to be favorable to the company.
Additionally, Vietnam is the third most highly populated nation in Southeast Asia, according
to the M. T. survey (2020). In Vietnam, the sex ratio rose and stabilized in the 45-49 age
range. As a result, it is a thriving economic center that attracts a large number of migrants to
work, live, and learn. Furthermore, the 2019 Census figures showed that the population aged
15-64 years old accounts for 68.0% (down 1.1% from 2009), with the population under
15 and 65 years old and above accounting for the remaining percentages, at 24.3% and 7.7%,
respectively. As a result, Vietnam is experiencing a "golden demographic structure," with
2 persons of working age compared to 1 dependent. This possitive impacts on both laborforce
and potential customers for Coffeegreen to increase its revenue.
5.1.4. Technology.
It is clear that technological change occurs at a slow pace. It's a great chance for Coffeegreen
in terms of machines and equipment that aren't too old for the times. Furthermore, the risk
associated with investing in coffee processing equipment is reduced. Based on balance
scorecard of Coffeegreen, it can be seen that Coffeegreen invest in R&D activity with small
expenses (only 4%). In term of innovation, it is currently easier for coffee conpanies to
develop technological prodcution to diversify its products and improve coffee’s quality. In
conclusion, technological factor seems to be favorable to Coffeegreen to sustain its success.
Coffeegreen, on the other hand, faces a challenge because today's customers demand a higher
level of quality and diversity in their coffee goods. Because of this, Coffeegreen's processing
technology must be sophisticated and advanced.
5.2. SWOT analysis.
18
Trong Khuong, 2017).
5.1.3. Social.
Coffeegreen's goods are sold both domestically and internationally, therefore the social
factor in Vietnam and Germany are crucial to the company's growth. According to Khi tri
thuc so (2021), in Vietnam, customers nowadays expect a better level of coffee quality and
put higher demands on the seller. This has recently changed as Vietnamese consumers have
become more concerned about their health and the environment, and are ready to pay more
for high-quality, environmentally friendly coffee. Since the products of Coffeegreen are
Arabica coffee with very high quality, social tendency seems to be favorable to the company.
Additionally, Vietnam is the third most highly populated nation in Southeast Asia, according
to the M. T. survey (2020). In Vietnam, the sex ratio rose and stabilized in the 45-49 age
range. As a result, it is a thriving economic center that attracts a large number of migrants to
work, live, and learn. Furthermore, the 2019 Census figures showed that the population aged
15-64 years old accounts for 68.0% (down 1.1% from 2009), with the population under
15 and 65 years old and above accounting for the remaining percentages, at 24.3% and 7.7%,
respectively. As a result, Vietnam is experiencing a "golden demographic structure," with
2 persons of working age compared to 1 dependent. This possitive impacts on both laborforce
and potential customers for Coffeegreen to increase its revenue.
5.1.4. Technology.
It is clear that technological change occurs at a slow pace. It's a great chance for Coffeegreen
in terms of machines and equipment that aren't too old for the times. Furthermore, the risk
associated with investing in coffee processing equipment is reduced. Based on balance
scorecard of Coffeegreen, it can be seen that Coffeegreen invest in R&D activity with small
expenses (only 4%). In term of innovation, it is currently easier for coffee conpanies to
develop technological prodcution to diversify its products and improve coffee’s quality. In
conclusion, technological factor seems to be favorable to Coffeegreen to sustain its success.
Coffeegreen, on the other hand, faces a challenge because today's customers demand a higher
level of quality and diversity in their coffee goods. Because of this, Coffeegreen's processing
technology must be sophisticated and advanced.
5.2. SWOT analysis.
18
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SWOT Matrix for Coffeegreen Ltd.
Strengths Weaknessess
- High technology (transfer from
parent company).
- Proactively material resources
due to available Arabica coffee
in Vietnam => High quality of
raw material => Higher profit.
- Low labor cost.
-Low professional/ under skilled
style of employees.
-Some existing problems in
planning tools lead to differences
between actual results and
budgeted numbers.
Opportunities SO Strategies WO Strategies
- Strong taste of customers in
drinking coffee in both Vietnam
and Germany.
- Vietnamese Government aid =>
Lots of promotion.
- Supportive policies.
- Low tariff for exporting coffee.
- Signing a lot of free trade
agreements: CPTPP, EVFTA
=> Low trade restriction.
- Golden demographic structure.
- Highlier concern about high
quality of coffee.
- Low interest rate.
- Stable exchange rate.
- Low infaltion rate.
- High GDP in Germany.
- Diversify Coffeegreen’s
products.
- Develop to export to other
potential importers.
- Actively marketing strategies to
boost its profit.
- Do more training for employees.
- Improve planning department to
follow Coffeegreen’s strategies.
Threats ST Strategies WT Strategies
19
Strengths Weaknessess
- High technology (transfer from
parent company).
- Proactively material resources
due to available Arabica coffee
in Vietnam => High quality of
raw material => Higher profit.
- Low labor cost.
-Low professional/ under skilled
style of employees.
-Some existing problems in
planning tools lead to differences
between actual results and
budgeted numbers.
Opportunities SO Strategies WO Strategies
- Strong taste of customers in
drinking coffee in both Vietnam
and Germany.
- Vietnamese Government aid =>
Lots of promotion.
- Supportive policies.
- Low tariff for exporting coffee.
- Signing a lot of free trade
agreements: CPTPP, EVFTA
=> Low trade restriction.
- Golden demographic structure.
- Highlier concern about high
quality of coffee.
- Low interest rate.
- Stable exchange rate.
- Low infaltion rate.
- High GDP in Germany.
- Diversify Coffeegreen’s
products.
- Develop to export to other
potential importers.
- Actively marketing strategies to
boost its profit.
- Do more training for employees.
- Improve planning department to
follow Coffeegreen’s strategies.
Threats ST Strategies WT Strategies
19
- Threat of new entrants in coffee
rivalry.
- Threat of substitutes.
- Risks of materials (quality,
higher cost).
- Older population.
- Not well-trained workforce.
- Significant decrease in GDP
Vietnam.
- Improve the best quality of
coffee to eliminate other
competitors.
- Highly tight purchasing
department.
- Find other best substitutes for
materials.
- Manage better in recruiting and
selecting process.
5.3. Balanced scorecard (BSC) analysis.
BSC of Coffeegreeen is below:
Based on the above BSC, it can be seen that actual results of the first three perspectives are
unfavorable comparef to the target of Quater 1 of 2021. The main cause could be from
internal factors of the company. The company did not produce enough number of products as
the target and inventory time was very long (40 days > 25 days). This leads to lower selling
price and then decrease its revenue from sales volume. Long inventory time in warehouse
could impact on the quality of coffee and increase costs of inventory error. Furthermore, the
actual proportion of doutful debts in Coffeegreen also increased by 1%, so Coffeegreen could
lack of money in production and exporting expenses. However, the actual numbers of
Learning and Growth seems to be possitive to Coffeegreen. In particular, R&D expenditures
and social performance of Coffeegreen are slight higher (by 0.5%) than targets. As a result,
despite higher short-term expenses, Coffeegreen is extremely concerned about R&D
20
rivalry.
- Threat of substitutes.
- Risks of materials (quality,
higher cost).
- Older population.
- Not well-trained workforce.
- Significant decrease in GDP
Vietnam.
- Improve the best quality of
coffee to eliminate other
competitors.
- Highly tight purchasing
department.
- Find other best substitutes for
materials.
- Manage better in recruiting and
selecting process.
5.3. Balanced scorecard (BSC) analysis.
BSC of Coffeegreeen is below:
Based on the above BSC, it can be seen that actual results of the first three perspectives are
unfavorable comparef to the target of Quater 1 of 2021. The main cause could be from
internal factors of the company. The company did not produce enough number of products as
the target and inventory time was very long (40 days > 25 days). This leads to lower selling
price and then decrease its revenue from sales volume. Long inventory time in warehouse
could impact on the quality of coffee and increase costs of inventory error. Furthermore, the
actual proportion of doutful debts in Coffeegreen also increased by 1%, so Coffeegreen could
lack of money in production and exporting expenses. However, the actual numbers of
Learning and Growth seems to be possitive to Coffeegreen. In particular, R&D expenditures
and social performance of Coffeegreen are slight higher (by 0.5%) than targets. As a result,
despite higher short-term expenses, Coffeegreen is extremely concerned about R&D
20
activities and the social tendency to improve the company's reputation and tend to long-term
and stable development. In conclusion, to sustain the success of Coffeegreen, the company
should improve management performance to strictly follow its target in BSC and boost its
profit and reputation in coffee market.
SCENARIO 2
1. Compare how Coffeegreen and Galaxy are adapting management accounting systems
to respond to financial problems.
Coffeegreen and Galaxy are two businesses that operate in two related fields: coffee and
hospitality. The two firms also have different management accounting systems as a result of
their financial difficulties. The similarities and differences in management accounting for
these two firms are compared below.
To catch the exporting opportunities of signing FTAs (CPTPP and EVFTA), Coffeegreen's
General Director (GD) has attempted to launch varieties of goods, conduct social
responsibility, and implement new sales patterns to help serve international customers.
Furthermore, in order to lower operational costs and maintain profit and liquidity, the GD of
Coffeegreen has improved control over its purchase, receivables, storage, and product quality
since its strategy is high-quality products. Unlike Coffeegreen, Galaxy’s strategy focuses on
high-quality services while maitaining 1% market share annually, so Galaxy's Director has
tightened controls on service quality, expenses, sales, and risks.
To follow the aim of GD in Coffeegreen, the accountants used many planning tools to
control financial problems, especially standard costing system and BSC to follow and
monitor strategies of Coffeegreen, which are not exist in accounting system of Galaxy. As
mentioned above, standard costs are set for each form of expenses and each cost item
incurred very complete and detailed. In particular, the GD developed and strictly applied
quality standards for coffee products and materials obtained, as well as requiring
management accountants to collaborate with technicians to determine standard costs for raw
materials, labor, and overheads. These standards were then used to create operating budgets
at Coffeegreen. After that, at the end of each month, the accountants do a variance analysis
for cost items, sales, and inventory time. If a variance exceeds the standard, which is set at
5% of the standard, management accountants are required to mention it in the monthly
reports to the GD. Furthermore, since it has a history of providing generous credit sales to
consumers in order to compete, credit accountants were forced to provide monthly reports on
21
and stable development. In conclusion, to sustain the success of Coffeegreen, the company
should improve management performance to strictly follow its target in BSC and boost its
profit and reputation in coffee market.
SCENARIO 2
1. Compare how Coffeegreen and Galaxy are adapting management accounting systems
to respond to financial problems.
Coffeegreen and Galaxy are two businesses that operate in two related fields: coffee and
hospitality. The two firms also have different management accounting systems as a result of
their financial difficulties. The similarities and differences in management accounting for
these two firms are compared below.
To catch the exporting opportunities of signing FTAs (CPTPP and EVFTA), Coffeegreen's
General Director (GD) has attempted to launch varieties of goods, conduct social
responsibility, and implement new sales patterns to help serve international customers.
Furthermore, in order to lower operational costs and maintain profit and liquidity, the GD of
Coffeegreen has improved control over its purchase, receivables, storage, and product quality
since its strategy is high-quality products. Unlike Coffeegreen, Galaxy’s strategy focuses on
high-quality services while maitaining 1% market share annually, so Galaxy's Director has
tightened controls on service quality, expenses, sales, and risks.
To follow the aim of GD in Coffeegreen, the accountants used many planning tools to
control financial problems, especially standard costing system and BSC to follow and
monitor strategies of Coffeegreen, which are not exist in accounting system of Galaxy. As
mentioned above, standard costs are set for each form of expenses and each cost item
incurred very complete and detailed. In particular, the GD developed and strictly applied
quality standards for coffee products and materials obtained, as well as requiring
management accountants to collaborate with technicians to determine standard costs for raw
materials, labor, and overheads. These standards were then used to create operating budgets
at Coffeegreen. After that, at the end of each month, the accountants do a variance analysis
for cost items, sales, and inventory time. If a variance exceeds the standard, which is set at
5% of the standard, management accountants are required to mention it in the monthly
reports to the GD. Furthermore, since it has a history of providing generous credit sales to
consumers in order to compete, credit accountants were forced to provide monthly reports on
21
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customer's age. Purchases are controlled by the supplying department by signing long-term
contracts with farmers, which also does not exist in Galaxy due to its products and services.
In Galaxy, the accountants used budgets expenditures tool like Coffeegreen but only based on
budget items. To control order information, Galaxy upgraded the technology of information
and upgraded camera systems to ensure security, which were not applied in Coffeegreen’s
management accounting system. Rather than preparing monthly reports like Coffeegreen, the
accountants provides revenue and cost reports each quarter of year to the Director. The
reports divided into each type of Galaxy’s services to easily monitor each service. In addition,
despite not applying standard costs or quality, Galaxy set standard behavior for employees to
improve quality of services. Rather than reporting the age of customers in Coffeegreen, the
Director required the feedbacks of customers after experiencing Galaxy’s services in each
hotel. Moreover, a distinction that Coffeegreen should observe in Galaxy is that the Director
has recently begun to order McKinsey Vietnam Ltd. to establish Porter's five forces to fully
analyze the hospitality industry.
2. Characteristics of efficient management accountants.
Based on these above management accounting systems of 2 companies, below is some
characteristics of an efficient management accountant. Firstly, the accountant must have
knowledge of the company's industry, after which he or she must decide the best accounting
system to use for the company. Secondly, management accountants need to have skills in
accuracy as it is directly related to the numbers reported to the managers. Thirdly,
accountants must still have an interest in staying updated. The field of
management accounting is constantly evolving as new standards, rules, and taxes are
introduced. Accountants must have a clear knowledge of the most recent news and trends in
their respective fields. Fourthly, the efficient accountants must objectively prepare and
submit the required reports/information to the GD in time to timely deal with existing
problems in the company.
3. Analyse and evaluate how in responding to financial problems, management
accounting can lead Coffeegreen and Galaxy to sustainable success.
3.1. Coffeegreen.
The GD of Coffeegreen has improved control over its purchase, receivables, storage, and
product quality in order to lower operational costs and maintain profit and liquidity. By
appling quality standard for coffee products, it was easier for Coffeegreen to monitor the
22
contracts with farmers, which also does not exist in Galaxy due to its products and services.
In Galaxy, the accountants used budgets expenditures tool like Coffeegreen but only based on
budget items. To control order information, Galaxy upgraded the technology of information
and upgraded camera systems to ensure security, which were not applied in Coffeegreen’s
management accounting system. Rather than preparing monthly reports like Coffeegreen, the
accountants provides revenue and cost reports each quarter of year to the Director. The
reports divided into each type of Galaxy’s services to easily monitor each service. In addition,
despite not applying standard costs or quality, Galaxy set standard behavior for employees to
improve quality of services. Rather than reporting the age of customers in Coffeegreen, the
Director required the feedbacks of customers after experiencing Galaxy’s services in each
hotel. Moreover, a distinction that Coffeegreen should observe in Galaxy is that the Director
has recently begun to order McKinsey Vietnam Ltd. to establish Porter's five forces to fully
analyze the hospitality industry.
2. Characteristics of efficient management accountants.
Based on these above management accounting systems of 2 companies, below is some
characteristics of an efficient management accountant. Firstly, the accountant must have
knowledge of the company's industry, after which he or she must decide the best accounting
system to use for the company. Secondly, management accountants need to have skills in
accuracy as it is directly related to the numbers reported to the managers. Thirdly,
accountants must still have an interest in staying updated. The field of
management accounting is constantly evolving as new standards, rules, and taxes are
introduced. Accountants must have a clear knowledge of the most recent news and trends in
their respective fields. Fourthly, the efficient accountants must objectively prepare and
submit the required reports/information to the GD in time to timely deal with existing
problems in the company.
3. Analyse and evaluate how in responding to financial problems, management
accounting can lead Coffeegreen and Galaxy to sustainable success.
3.1. Coffeegreen.
The GD of Coffeegreen has improved control over its purchase, receivables, storage, and
product quality in order to lower operational costs and maintain profit and liquidity. By
appling quality standard for coffee products, it was easier for Coffeegreen to monitor the
22
quality of coffee and reduce costs of low quality goods. In particular, the company could
avoid purchasing low quality of raw coffee bean. Therefore, the quality of goods sold to
customer is better, which reduces costs of compensation, costs of quality risks and increase
the profit. Furthermore, the standard costs for each cost item such as material, labor and
overhead help the GD monitor material sources and employees during production process and
deal with manufacturing problems in time. The detailed budgets monthly reported by the
accountants supported them to analyze variances. As a result, the GD could identify the
problems in time and then improve system in the following month. Additionally, the age of
customers provided by credit accountants helped the GD make appropriate policies for
creditors based on the creditworthiness of customers. The long-term contracts signed with
farmers help to ensure no delays or omissions of supplying materials to Coffeegreen and
reduce supply interruption. Finally, the planning tool, BSC, could promote the company to
follow the strategies mentioned to boost its profit and reputation.
However, in management accounting system still existed problem, which is the accountants
have not to able to provide productivity and quality of products in annual report to the GD.
Because of its strategy is high quality of products, this problem seems to be extremely
serious. The GD can not supervise the quality of coffee product. Therefore, due to low
product quality, which may have a detrimental impact on error costs. If the quality of the
coffee declines, the company will lose money due to wastage, spoilage, compensation, and
evaporation costs (Horngren et al,2015). Besides, the GD also could not monitor the
productivity of manufacturing process, resulting in significantly decreases in production
volume as well as revenue. Thus, the accountants of Coffeegreen should find other tools that
mention productivity and quality reports to support the company in improving management
performance.
3.2. Galaxy.
Because of applying budget system, Galaxy can avoid excess expenses and motivate workers
to improve their performance to boost the profit of the company. The updated information
system helps the company collect and process customer orders and complaints as soon as
possible. Moreover, every quarter, each type of operation prepares revenue and expense
reports to assist the Director in deciding whether to expand or reduce a service line. The
accountants of Galaxy designed behavior standard for Director to train the employees and
improve their skills in services. About customers’ feedbacks, the Director could improve
service system in Galaxy to increase customer loyalty and satisfaction. In addition, the
23
avoid purchasing low quality of raw coffee bean. Therefore, the quality of goods sold to
customer is better, which reduces costs of compensation, costs of quality risks and increase
the profit. Furthermore, the standard costs for each cost item such as material, labor and
overhead help the GD monitor material sources and employees during production process and
deal with manufacturing problems in time. The detailed budgets monthly reported by the
accountants supported them to analyze variances. As a result, the GD could identify the
problems in time and then improve system in the following month. Additionally, the age of
customers provided by credit accountants helped the GD make appropriate policies for
creditors based on the creditworthiness of customers. The long-term contracts signed with
farmers help to ensure no delays or omissions of supplying materials to Coffeegreen and
reduce supply interruption. Finally, the planning tool, BSC, could promote the company to
follow the strategies mentioned to boost its profit and reputation.
However, in management accounting system still existed problem, which is the accountants
have not to able to provide productivity and quality of products in annual report to the GD.
Because of its strategy is high quality of products, this problem seems to be extremely
serious. The GD can not supervise the quality of coffee product. Therefore, due to low
product quality, which may have a detrimental impact on error costs. If the quality of the
coffee declines, the company will lose money due to wastage, spoilage, compensation, and
evaporation costs (Horngren et al,2015). Besides, the GD also could not monitor the
productivity of manufacturing process, resulting in significantly decreases in production
volume as well as revenue. Thus, the accountants of Coffeegreen should find other tools that
mention productivity and quality reports to support the company in improving management
performance.
3.2. Galaxy.
Because of applying budget system, Galaxy can avoid excess expenses and motivate workers
to improve their performance to boost the profit of the company. The updated information
system helps the company collect and process customer orders and complaints as soon as
possible. Moreover, every quarter, each type of operation prepares revenue and expense
reports to assist the Director in deciding whether to expand or reduce a service line. The
accountants of Galaxy designed behavior standard for Director to train the employees and
improve their skills in services. About customers’ feedbacks, the Director could improve
service system in Galaxy to increase customer loyalty and satisfaction. In addition, the
23
company uses Porter's 5 Forces method to analyze its roles and specify competing
measurement.
Nonetheless, there were weaknesses in Galaxy's management accounting system, which is the
report each quarter has not included the monthly occupancy rate. With hotel service, OR is
considered an important factor of Galaxy. Since the accountants would not be able to report
the occupancy rate of each room in hotels, a suitable strategy for each type of room would be
impossible to design. As a result of failing to determine the needs of the customer's room
without a marketing strategy, the business can suffer a decline in profits. Thus, Galaxy should
develop information system of each room every month to monitor the quantity of used rooms
as well as the quality of each room.
24
measurement.
Nonetheless, there were weaknesses in Galaxy's management accounting system, which is the
report each quarter has not included the monthly occupancy rate. With hotel service, OR is
considered an important factor of Galaxy. Since the accountants would not be able to report
the occupancy rate of each room in hotels, a suitable strategy for each type of room would be
impossible to design. As a result of failing to determine the needs of the customer's room
without a marketing strategy, the business can suffer a decline in profits. Thus, Galaxy should
develop information system of each room every month to monitor the quantity of used rooms
as well as the quality of each room.
24
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REFERENCES
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Pearson Prentice Hall.
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25
1. Horngren et al (2015). Cost Accounting: A Managerial Emphasis. 14th ed. USA:
Pearson Prentice Hall.
2. Lumen Learning. (2021). Advantages and Disadvantages of Standard Costing.
Available at
https://courses.lumenlearning.com/santaana-managacct/chapter/advantages-and-
disadvantages-of-standard-costing/. [Accessed May 23rd, 2021].
3. Thakur, M. (2021). Budgetary Control. Wall Street Mojo. Available at
https://www.wallstreetmojo.com/budgetary-control/. [Accessed May 23rd, 2021].
4. Topica. (2018). BÀI 5: KIỂM SOÁT CHI PHÍ BẰNG CHI PHÍ ĐỊNH MỨC.
Available at
http://eldata11.topica.edu.vn/HocLieu/ACC304/Giao%20trinh/07_ACC304_Bai5_v2.
0013107209.pdf. [Accessed May 23rd, 2021].
5. Tai lieu hoc tap. (2015). Giao trinh ke toan quan tri. Available at
http://dulieu.tailieuhoctap.vn/books/ke-toan-tai-chinh-thue/ke-toan-quan-tri/
file_goc_778531.pdf. [Accessed May 23rd, 2021].
6. Foodworld. (2020). Vị trí của ngành cà phê và vai trò của xuất khẩu cà phê. Available
at https://foodworld.vn/vi-tri-cua-nganh-ca-phe-va-vai-tro-cua-xuat-khau-ca-phe/.
[Accessed May 23rd, 2021].
7. Kho tri thuc so. (2021). Phân tích môi trường kinh doanh ở Việt Nam chỉ ra cơ hội và
thách thức của tập đoàn cà phê Trung Nguyên. Available at
https://khotrithucso.com/doc/p/phan-tich-moi-truong-kinh-doanh-o-viet-nam-chi-ra-
co-hoi-va-164897. [Accessed May 23rd, 2021].
8. Nguyen, T. M. H and Nguyen, T. M. T. (2020). Thực trạng và giải pháp phát triển cho
ngành Cà phê Việt Nam. Available at https://tapchicongthuong.vn/bai-viet/thuc-trang-
va-giai-phap-phat-trien-cho-nganh-ca-phe-viet-nam-72337.htm. [Accessed May 23rd,
2021].
9. Wikipedia. (2020). Kinh tế Việt Nam. Available at
https://vi.wikipedia.org/wiki/Kinh_t%E1%BA%BF_Vi%E1%BB%87t_Nam.
[Accessed May 23rd, 2021].
10. Trading Economic. (2021). Vietnam Interest Rate. Available at
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25
11. N. T. (2020). Vietnam c.bank cuts policy rates, the fourth time in 2020. Hanoitimes.
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May 23rd, 2021].
13. Nguyen, T. K. And Truong, T. T. T. (2017). Thực trạng và giải pháp thúc đẩy xuất
khẩu nông sản của Việt Nam. Nghien cuu lap phap. Available at
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2021].
14. M. T. (2020). Quy mô dân số Việt Nam những phát hiện chính. Con so su kien.
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chinh.htm. [Accessed May 23rd, 2021].
26
Available at http://hanoitimes.vn/vietnam-cbank-cuts-policy-rates-the-fourth-time-in-
2020-314376.html. [Accessed May 23rd, 2021].
12. Dang, H. M. (2020). Duy trì ổn định tỷ giá. Bao thoi nay. Available at
https://nhandan.com.vn/baothoinay-kinhte/duy-tri-on-dinh-ty-gia--620728/. [Accessed
May 23rd, 2021].
13. Nguyen, T. K. And Truong, T. T. T. (2017). Thực trạng và giải pháp thúc đẩy xuất
khẩu nông sản của Việt Nam. Nghien cuu lap phap. Available at
http://lapphap.vn/Pages/tintuc/tinchitiet.aspx?tintucid=208028. [Accessed May 23rd,
2021].
14. M. T. (2020). Quy mô dân số Việt Nam những phát hiện chính. Con so su kien.
Available at http://consosukien.vn/quy-mo-dan-so-viet-nam-nhung-phat-hien-
chinh.htm. [Accessed May 23rd, 2021].
26
APPENDIX
Figure 2: Global Peace Index 2019 (Source: IEP)
Figure 3: GPI Vietnam (Source: IEP)
27
Figure 2: Global Peace Index 2019 (Source: IEP)
Figure 3: GPI Vietnam (Source: IEP)
27
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Figure 3: Vietnam Interest Rate (Source: Trading Economics)
28
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