ACC203 - Analyzing Financial Management at Delicious Cakes Factory

This report provides a comprehensive analysis of financial management principles applied to Delicious Cakes Factory, addressing challenges such as declining sales and the need for innovative products. It explores the benefits of implementing business process management, including increased agility, productivity, staff satisfaction, and minimized risks. The report also outlines the design of control systems for monthly performance reporting, emphasizing financial and non-financial data, strategy implementation, and goal congruence. Furthermore, it touches upon job costing systems at Martinez Building Products Company and their suitability for tracking costs and determining profit levels. Desklib offers a variety of solved assignments and past papers for students seeking additional resources.

Running head: ACCOUNTING AND FINANCIAL MANAGEMENT
Accounting and Financial Management
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1ACCOUNTING AND FINANCIAL MANAGEMENT
Table of Contents
Question 1: Delicious Cakes Factory..............................................................................................2
Requirement 1:.............................................................................................................................2
Requirement 2:.............................................................................................................................5
Question 2: Foxwood Company......................................................................................................7
Requirement 1:.............................................................................................................................7
Requirement 2:.............................................................................................................................7
Requirement 3:.............................................................................................................................8
Question 3: Karlene Industries........................................................................................................8
Requirement 1:.............................................................................................................................8
Requirement 2:.............................................................................................................................8
Requirement 3:.............................................................................................................................9
Requirement 4:.............................................................................................................................9
Question 4: Martinez Building Products Company.........................................................................9
Requirement 1:.............................................................................................................................9
Requirement 2:...........................................................................................................................10
Requirement 3:...........................................................................................................................10
References:....................................................................................................................................11

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Question 1: Delicious Cakes Factory
Requirement 1:
To,
The Managing Director,
Delicious Cakes Factory,
Date: 29/03/2019
Subject: Benefits of process implementation for ascertaining organisational objectives, strategies
and planning systems
After taking into consideration the current state of the organisation, Ralph Slick and the
Managing Director are needed to implement business process management along with finding
out suitable ways to increase those types of products needed by the customers. There are a
number of benefits that the organisation could obtain by implementing business process
management and they primarily include the following:
Agility:
Business organisations always face the requirement for change. The changes might
become crucial owing to market demands, new regulations, market demands or occurrence of
new working procedures (Fullerton, Kennedy and Widener 2014). One significant feature of
business process management is that it assists in designing the processes, which are deemed to be
flexible. By using this process, Delicious Cakes Factory could enjoy the flexibility of

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undertaking changes to processes having lower costs. Hence, with the help of this system, the
organisation could customise its processes for meeting the organisational requirements.
Productivity:
As mentioned by Kaplan and Atkinson (2015), business process management could assist
in the automation of various repetitive elements within normal workflows. The process
enhancements such as the elimination of bottlenecks, initiation of parallel processing and
eradication of redundant steps could be accomplished easily with the aid of business process
management. With such enhancements, the staffs of Delicious Cakes Factory could spend
additional time on other activities, as the primary support functions would have been managed.
Thus, the organisation could ensure enhanced productivity and minimised wastage.
Staff satisfaction:
With the help of business process management, an organisation could eliminate
numerous red tapes and the staffs could concentrate fully on their work. This is because the
process eradicates repetitive work by making easy access to information (Lavia López and Hiebl
2014). This would result in enhanced productivity and satisfied workforce.
Minimised risks and increased efficiency:
The business process visibility enables for concentration on efficiencies (Otley 2016).
Since the process provides the organisations with the opportunity to work effectively, it becomes
possible to save resources. Thus, with the help of the process, Delicious Cakes Factory could
prepare effectively-designed, monitored and executed processes for minimising the overall fraud
risk.

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Sustainability:
There has been continuous improvement in business processes for adapting to the varying
conditions of the organisation in order to ensure the delivery of the anticipated outcomes.
Delicious Cakes Factory could accomplish this adaptation with the assistance of business process
management while maintaining managerial oversight or control.
Customer-centric:
With enhanced productivity and leaner processes, it is possible for the staffs to focus
more on the customers (Parker and Fleischman 2017). Delicious Cakes Factory would have an
increased capacity of responding quickly to the proposals, developing quicker solutions and
rapid customisations. Thus, business process management brings technology and individuals
together for providing the accurate outcomes for stakeholders including customers.
Improved integration of technology:
With the aid of business process management, Delicious Cakes Factory could bridge the
communication gap between information technology and business users by using standards like
business process modelling notation. Therefore, the focus is on processes along with the
supporting applications.
Measuring the requirements of processes and individuals:
It is possible to measure all processes effectively and then they could be contrasted with
the expected outcomes. This assists in the management of processes and individuals. When
business process management is implemented with technology, it provides analytical tools and
reporting for undertaking executive decisions. Thus, Delicious Cakes Factors could use business

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process management for streamlining processes along with quantifying the processes to assist the
organisation in optimising its workflows.
The above-stated benefits could be accomplished easily by implementing processes or
more specifically, business process management. Hence, from the perspective of a management
accountant, it is advised to the Managing Director to implement the system within the
organisation.
Requirement 2:
The following control systems need to be designed in order to report monthly
performance:
Tool for strategy implementation:
Delicious Cakes Factory needs to consider its human resource management,
organisational structure and culture for implementing business strategies.
Activities related to management control:
In this aspect, the factors to be considered mainly include planning, coordination,
communication, decision, evaluation and influence (Bromwich and Scapens 2016).
Congruence of goals:
This implies that the goals of an individual need to be consistent with those of the
organisation.
Financial and non-financial emphasis:

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In case of financial aspects, return on equity and return on investment are to be taken into
account, while for non-financial aspects, Delicious Cakes Factory have to consider market share,
customer satisfaction and product quality.
Helpful in devising new strategies:
In terms of this aspect, consideration needs to be provided to interactive controls and the
ways through which strategies are to be executed (Kokubu and Kitada 2015).
Beneficial information for Ralph Slick and the Managing Director:
Financial data:
 Return on investment
 Net profit
 Total sales
 Return on assets
 Return on equity
Non-financial data:
 On-time delivery
 Staff morale
 Market share
 Product quality
 Customer satisfaction

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Question 2: Foxwood Company
Requirement 1:
Requirement 2:

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Requirement 3:
Question 3: Karlene Industries
Requirement 1:
Requirement 2:

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Requirement 3:
Requirement 4:
Question 4: Martinez Building Products Company
Requirement 1:
Martinez Building Products Company is involved in marketing unique custom-made
residential garage doors. Since the organisation manufactures products depending on special
customer orders, each order is treated in the form of a particular job and the jobs trace all costs
(Balakrishnan, Labro and Soderstrom 2014). With the help of this system, the organisation could
arrange cost-related data for determining the profit level of a particular job. Direct costs could be
traced to products and overhead costs could be assigned on predetermined basis. With the help of
work-in-process inventory, it becomes possible to ascertain the cost incurred until date. After the
completion of the job, costs are transferred to finished goods inventory and after selling the job,

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the cost of finished goods inventory is transferred to cost of sales for ascertaining gross profit.
Thus, job costing system is best fitted for the organisation.
Requirement 2:
Requirement 3: