The project aims to evaluate students’ understanding of traditional Absorption Costing,
their ability to use this method, and their critical analysis of its implementation. As such
the project tests all 6 learning outcomes identified on the module specification.
Project Description:
This is an individual project.
The project consists of two parts:
Part A tests your ability to determine costs using Absorption Costing (see page 3 for
further details of the question)
Part B requires you to critically analyse Absorption Costing.
In this part of the project you should comprehensive research Absorption Costing,
including (though not to the exclusion of other relevant issues) it’s advantages, why it
remains the most popular form of Costing, and its shortcomings. In your critical analysis
you should consider what other options for costing are available to businesses, and in
what scenarios each option is preferable.
Structure of the Project:
Cover Page
Table of Contents
Introduction:
Body of Report
Answer to Part A
Answer to Part B
Summary & Conclusion
Bibliography
NOTE: The title page should include the name of the course, the title of the project, the
students’ full names, the lecturer’s name and the date. The table of contents should
include all the headings with appropriate page numbers, including the Bibliography and the
Appendices.
Format of the Project:
As Part A is primarily numbers-based, the word-count is not important. Part A is expected
to consist of approximately 2,000 words (not counting tables or inserts, introduction and
conclusions). Tables or work/data taken from other sources maybe included in an
appendix.
1. The report should display a coherent structure: title page should include student
name, module name, lecturer name, date and school name followed by contents page,
introduction, executive summary, methodology, findings, analysis, conclusions,
recommendations, referencing and appendices.
2. The project should be prepared as a neatly typed Word document (Times New
Roman 12 points), with double spacing and page numbering.
3. Tables or work/data taken from other sources may be included in an appendix.
4. All sources must be referenced in the text and a full bibliography must be provided
(including visited websites) in the Harvard style referencing system. Paraphrasing or direct
quotes taken from other sources must be clearly indicated with citations. No footnoting!
5. Students are reminded that depth, relevance and variety are the crucial elements of
quality research. (Wikipedia is not considered to be a relevant source of information; any
students referencing Wikipedia will be deducted marks! Alternatively if you find information
on Wikipedia use the original sources listed at the bottom of the article)
6. Students are reminded to use valid and peer-reviewed references to support their
work. Websites should only be used if they represent an established source and only for
facts and figures. Students should make the most of academic and practitioner books and
articles.
7. Submission should be by the deadline below and should include a hard copy to
the lecturer and an electronic copy to your academic coordinator
8. Late submissions will incur a 10% per day reduction to be calculated on the
assessment grade. After 5 days late the student will receive a 0 grade and will have to resit
the
project.
9.
All work must conform to University regulations on Cheating, Collusion and
Plagiarism’ as described in your program handbook. You are advised to use the Harvard
referencing style and avoid plagiarism.
Deadline: Midnight June 4th 2017
Projects, including powerpoint presentations must be delivered by email to the lecturer and
the academic office, and be loaded on Turnitin by midnight on 4
th
of June 2017. Only when
this has been done will the project be considered submitted. Late submission will carry a
penalty of 10% per day (for example after one day grade x 90%, two days grade x 80%
etc.)
A paper copy of the project must be delivered to the lecturer at the start of the next class
after the deadline.
Turnitin Details: Please see submission details on the ESE Student Portal
PART A:
A furniture-making business manufactures quality furniture to customers’ orders. It has
three production departments and two service departments. Budgeted overhead costs for
the coming year are as follows:
£ Apportionment Basis
Rent and Rates 12800 Floor Area
Machine Insurance 6000 Machine Val ue
Telephone Charges 3200 Floor Area
Depreciation 18000 Machine Value
Production Supervisor Salary 24000 Direct Labour Hours
Heating/Lighting 6400 Floor Area
Tot al 70400
The three production departments – A, B & C, and the two service departments – X & Y,
are housed in one premises. Other information is given below:
A B C X Y
Floor Area (Sq. metres) 3000 1800 600 600 400
Machine value (£) 24000 10000 8000 4000 2000
Direct Labour Hours budgeted 3200 1800 1000
Labour Rates per hour £8.80 £8.50 £8.40 £7.50 £7.50
Allocated Overheads:
Specific to Each Department 2800 1700 1200 800 600
Dept. X’s costs apportioned 50% 25% 25%
Dept. Y’s costs apportioned 20% 30% 50%
Required:
1. Prepare a statement showing the overhead cost budgeted for each production
department and calculate suitable overhead absorption rates.
2. The following piece of furniture is to be manufactured. Calculate the Full Cost based
on:
Direct Material £125,
Direct Labour: 10 hours Dept A, 6 hours Dept B, 5 Hours Dept C
3. Calculate the price of the job based on a required mark-up of 25%.
PART B:
As described on page 1
Criteria
Weighting
GENERAL MARKING CRITERIA QUALITATIVE SUBJECTS
Excellent work: 70% +
Above satisfactory
work:
60% – 69%
Satisfactory:
50 – 59%
Relevance
Content
Depth
Structure
Excellent knowledge and
understanding of material
and an imaginative
sense of its relevance
across a range of issues,
and context or policy
situation; excellent use of
course material and
other relevant
information to support
argument
Independent and
creative, and
demonstrates clear
thinking; ability to
analyse and critically
evaluate material
A sensitive awareness of
conflicting arguments
and ideas and of their
provenance.
Clear grasp
of implications.
Excellent organisation of
material; clear, logical
flow of argument; good
sign-posting throughout.
Style
Fluent use of written
language; theory is
fluently drawn in to
illuminate and evidence
the arguments.
Comprehensive and
accurate and
comprehensive use of
Harvard system
Ver y good use of
course material and
other information;
well chosen to
support arguments
relevant to question
Good knowledge and
understanding of the
material, across a broad
spectrum, combined
with an ability to
evaluate, analyse and
reflect on key issues
Well organised use of
most of the major
points with an ability
to draw upon them
creatively and
critically; awareness
of conflicting
arguments and ideas
and attempt to
address them in
context
Good, clear
framework and
reasoned argument
with evidence of
careful thought
Good use of written
language; theory is
appropriately
integrated and
correctly presented.
Accurate and
comprehensive use
of Harvard system
Competent use of
course materials and
other information to
support most
arguments
Reasonable knowledge
of the material and
ability to draw upon
more than one source
for ideas; uses key
themes well.
Capacity to grapple
with conflicting
arguments and ideas;
beginning to draw
together and
synthesise ideas and
perspectives from a
range of theory
Sensible use of major
points integrated into
the answer; logical flow
of ideas is apparent
Adequate use of
written language;
meaning is conveyed,
although not always
clearly; theory used,
but not be very well
integrated or
appropriately used.
Limited use of Harvard
system
Failure:
Below 50%
Little or no sign
of relevance
Very limited
knowledge and
understanding
and the issues
involved
Lack of
awareness of
conflicting
arguments and
ides
Little or no
evidence of
planned
structure and
organisation
Meaning is very
hard to follow
due to confusing
use of language.
Little or no use of
Harvard system