MBA7001 Accounting For Decision Makers Assignment Brief Writ-2 Cardiff Metropolitan University

Instructions to Candidates

• The coursework is divided into two sections

• Section A (Compulsory Question, 40 marks)
• Section B (Three questions, 30 marks each — answer any TWO only)
•    Show all workings for numerical parts. Marks are awarded for method as well as final answers.

●      Written parts should demonstrate critical analysis, integration of theory with practice, and application to managerial decision-making.

●      Use appropriate academic references where required (Harvard style).

Section A (Compulsory Question – 40 Marks) Question 1

There are various methods can be used for appraising investment projects, Payback Period, Accounting Rate of Return (ARR), Net Present Value (NPV) and Internal Rate of Return (IRR) are of the main methods used by firms. You need to: 

1-  Demonstrate your understanding of the calculation of these four methods using an example which you need to create. Your example should be about any capital expenditure (investment project) with 4 years of expected life, has different annual cash flows, has residual value, and requires working capital for running.

●      Payback Period  (5 marks)

●      Accounting Rate of Return (ARR) assuming straight-line depreciation (5 marks)

●      Net Present Value (NPV) (10 marks)

●      Internal Rate of Return (IRR) using interpolation (10 marks)

2-  There is another project with NPV of £263,374 and 18.892% IRR, you need to use your answer in 1 to comment on which project should be undertaken. In your comments, you should discuss the advantages and disadvantages of each of the four methods to justify your decision to select the project you have chosen.    (10 marks)

Section B (Answer TWO Questions Only – 30 Marks Each) Question 2 (Total: 30 marks) 

a)  The Statement of Financial Position (Balance Sheet) and the Statement of Financial Performance (Income Statement) are the two main financial statements published annually by public companies. Compare and contrast these two statements by discussing the key areas (up to

5) of difference between them and the linkage between them. Please note that discussion should be supported with examples (figures) from your own FTSE 100 index company allocated to you.   (18 marks)

b)   Although the Statement of Cash Flows is not always compulsory for all companies, many public companies prepare it due to its importance. Discuss the benefits of the cash flow statement, with particular reference to the

difference between cash and profit. Discuss the circumstances in which the Statement of Cash Flows becomes especially valuable for decision-makers with examples from your own FTSE 350 index company allocated to you. (12 marks)

Question 3 (Total: 30 marks)

You are in the process of starting a manufacturing business which specialises in making two products. Your business must manufacturer supplying tangible products (e.g. your food or drink to a restaurant) out of a few ingredients.

Required:

For the first year of operation:

1- Forecast the quarterly sales in units and money (they should be different for each quarter) for every product. (2 marks) 

2- Identify and forecast at least 4 variable cost items per unit for each of your chosen products. (2marks)

3- Identify and forecast at least 7 items of fixed cost related to the business.  (3.5 marks)
4- Calculate both the number of units (to the nearest unit) and the revenue the company needs to break-even using the marginal costing system for each product. (3 marks)

Note: Allocate the fixed cost to the two products equally (50% each)

5- Calculate the annual margin of safety expressed as a percentage, and as number of units based on the forecasted sales in 1 for each product. (4 marks)

6- Prepare the annual marginal costing income statement based on your budgeted sales volume for each product. (6 marks)

7- Make a comparison between the two products and recommend which is better in terms of breakeven analysis with supporting comments. (4.5 marks)

8- Demonstrate your understanding of the single limiting factor analysis by assuming there is a limitation in one of the production factors (e.g., material or labour) needed to make your products. What is the new production mix that maximises the profitability of your business given the new situation? (5 marks)

Note: All the compiled numbers of your business must be reasonable and financially feasible (based on your choice of industry) and must be in Sterling.

Question 4 (Total: 30 marks)

Planning and control (budgeting) can be defined as “the processes that organisations use to prepare, manage, and regulate their financial plans. It helps align resources with goals, monitor performance, and ensure financial accountability.”

Part A (10 marks)

Using the most recent annual report of the FTSE 100 index company allocated to you, prepare a summary of what your company has aimed to achieve, and what it has actually achieved, over the past 3 years as part of its strategic plan. Your analysis should be presented in the context of the planning and control cycle, demonstrating how the company’s activities align with the key steps of budgeting practice.

Part B (20 marks)

Assume the role of a consultant for your chosen company. Propose one or more strategic aims for the organisation to pursue over the next 3 years. Explain, in detail, the seven steps of planning and control that the company should follow to achieve these aims, highlighting how each step supports strategic alignment, performance monitoring, and resource allocation.

Artificial Intelligence Models – Guidance for this assessment:

Artificial Intelligence (AI) models can be a powerful tool to support your learning. The University has provided some resources to support you in its appropriate usage:

• Library Services AI Hub 
• Student Guide to AI and Assessment 
• Code of Conduct for Students on the use of AI 
• Cite Them Right resource on citing materials relating to AI (if permitted)

As per the academic regulations (Academic Handbook Ah1_08), in all cases you must submit work that is your own, acknowledging any part of it that has been informed by another source – including that which is AI generated. Upon submission of work, you will be asked to confirm the following statement:

I confirm that this assignment is my own work, except where I have acknowledged the use of works from other sources, including the use of any artificial intelligence (AI) tools, in accordance with what is allowable as described in the assessment brief.

Please note the following:

• AI should not be used as a substitute for your own knowledge, and you should never include any material that you do not understand and could not explain if asked.  
• Not being able to explain your work when asked is likely to be a key factor when considering cases of academic misconduct related to AI.

The following information provides specific guidance for this assessment about what level of AI use is appropriate for this assessment. Remember that in all cases you must submit work that is your own, acknowledging any part of it that has been provided by another source. 

Submission Deadline:

Submission Time

Moodle/Turnitin:

Monday 20th July 2026

By 4.00pm on the deadline day.

Estimated Feedback  Return Date

 after the deadline will not

The assessment must be submitted as a pdf document (save the document as a pdf in your software) and submit through the Turnitin submission point in Moodle.

Your assessment should be titled with your: 

student ID number, module code and assessment ID,

e.g. st12345678 BHL5007 WRIT1

Feedback for the assessment will be provided electronically via Moodle. Feedback will be provided with comments on your strengths and the areas which you can improve. View the guidance on how to access your feedback.

All marks are provisional and are subject to quality assurance processes and confirmation at the programme Examination Board.

 The student will be able to:

• Demonstrate the application of investment appraisal methods and discuss the attributes of each of the methods.
• Explain the budgeting process and the interlinking of the various budgets within the business.
• Demonstrate understanding the concepts of statement of financial position, income statement and cash flows statement in financial accounting and their benefits.
• Distinguish between fixed cost and variable cost and use this distinction to explain the relationship between cost, volume and profit and limiting factor analysis. 

●

●

Section A (Compulsory Question – 40 Marks) 

Question 1

Suggested answer

1a) Payback Period (5 marks)

●      Correct method set-up and cumulative cash flows (2 marks)

●      Correct identification of payback point (2 marks)

●      Clear presentation (1 mark)

2b) ARR (5 marks)

●      Depreciation calculated correctly (1 mark)

●      Average annual accounting profit derived (2 marks)

●      Average investment derived (1 marks)

●      ARR % correctly applied (1 marks)

3c) NPV (10 marks)

●      Correct discounting factors @10% (2 marks)

●      Present values of each year (3 marks)

●      Total NPV for each project (3 marks)

●      Presentation & accuracy (2 marks)

4d) IRR (10 marks)

●      Correct application of interpolation formula (4 marks)

●      Use of two discount rates with NPVs (3 marks)

●      Approximate IRR derived (2 marks)

●      Logical presentation (1 mark)

2) Recommendation & justification (10 marks)

●      Identification of preferred project and why (2 marks)

●      Discussion of advantages and disadvantages of each method is 2 mark X 4 methods =  (8 marks)

Section B (Answer TWO Questions Only – 30 Marks Each)

Question 2 (Total: 30 marks)

Marking scheme

Part (a) Statement of Financial Position vs Statement of Financial Performance (20 marks) 3 marks each area of difference

Part (b) Benefits of Cash Flow Statement (12 marks)

●      Difference Between Cash & Profit (2 marks)

●      Benefits of Cash Flow Statement (4 marks) 

●      Circumstances Where Highly Recommended (6 marks)

Question 3 (30 marks)

Requirement 1 to 6 & 8

Each requirement/calculation correctly made will be awarded the allocated mark e.g., 1 m or 0.5 m as required.

Question 4 (Total: 30 marks) Part A (10 marks)

Using company’s annual report to analyse past aims/achievements in line with planning & control cycle Mark Allocation:

• Identification of company’s recent strategic aims (2 marks)
• Evidence of achievements or progress, supported by report data (3 marks)
• Linkage to planning and control steps (e.g., setting objectives, resource allocation, performance monitoring) (3 marks)
• Structure, clarity, and professional writing (2 marks)

Performance Levels:

• Excellent (8–10 marks): Clear, concise summary with well-chosen evidence from the annual report; insightful linkage to planning and control practices; strong professional writing.
• Good (6–7 marks): Adequate coverage of aims/achievements; some evidence of connection to planning and control cycle; minor weaknesses in clarity or depth.
• Satisfactory (4–5 marks): Basic description of aims and results; limited linkage to planning and control; descriptive rather than analytical.
• Weak (0–3 marks): Little or no evidence from report; vague or inaccurate description; no application of planning and control concepts.

Part B (20 marks)

Consultancy perspective: propose new aims & apply 7-step planning and control framework Mark Allocation:

• Clear, relevant strategic aim(s) for future (3 marks)
• Application of the 7 steps of planning and control (2 marks each × 7 = 14 marks)
• Integration and evaluation & using references (3 marks): quality of analysis, critical insight, and consultancy-style recommendations.

Performance Levels:

• Excellent (16–20 marks): Strategic aims are clear, ambitious yet realistic; each of the seven steps explained in detail and directly linked to company context; evidence of critical thinking and consultancy perspective
• Good (12–15 marks): Strategic aims appropriate; most steps of planning/control well explained though some lack depth or context; recommendations generally sound.

• Satisfactory (8–11 marks): Strategic aim is basic or generic; some steps missing or superficially explained; analysis limited to description.
• Weak (0–7 marks): No clear aim proposed; steps absent or poorly applied; lacks understanding of planning and control cycle.