MNGT 342: To Construct a Cost Management System for the Identified Business Concern: Managerial Accounting Assignment, NUS, Singapore

Major Project

Objective:   To construct a Cost Management System for the identified business concern and propose an organizational strategy to improve efficiency and effectiveness

Design of the CMS will include:

1. Analysis of key factors influencing CMS
2. Determination of desired outputs and performance measures
3. Perform Gap analysis between desired outputs and current systems
4. Provide strategy and viable models of cost reduction and profit maximization

Methods to be employed:

The team will use observations of business activities, interviews and discussions with owners, and analysis with experts as part of the various methods needed to be used in the study.  The study also involves but not limited to the following:

1. The teams will be tested on how knowledge acquired in class is effectively applied in the analysis of the case/project selected for the study.
2. They will identify the various functions in the business process and draw a process chart.
3. Each function in the process will be further broken down into individual activities and an activity analysis will be conducted by classifying the activities into value-added, non-value-added, and business value-added.
4. Analysis of quantitative data involves identification of problem areas, causes of the problems, analysis of methods used in the process of costing, and the appropriateness and effectiveness of these methods.
5. At the end of the study, a viable and sustainable cost management system will be formulated with various possible strategies to be implemented in the achievement of objectives and goals.
6. Each team will present their findings in class where the owners of the businesses will be invited.

Project Plan (Format): Flexibility will be provided in the project plan.  However, the following could serve as a guideline.

1. Introduction of the business and the project
2. Identification of objectives and goals
3. Project methodology used
4. Data and facts collected
5. Analysis of data and findings
6. Conclusions and inferences drawn

Detailed and feasible strategies proposed for cost reduction and profit maximization.