Scenario 

You are working in the Finance Department for a retail group having successfully completed your accountancy qualifications and training. Your line manager, the Finance Director, has been asked to review the induction pack provided to new Board members. His judgement is that the existing materials assume a level of financial knowledge, which is not shared by all members.

In order to address this issue, the Finance Director has asked you to prepare a first draft of a set of materials for the induction pack for his further consideration.

Task 1 

The materials must provide an overview of financial and management accounting systems which:

1. compare management and financial accounting systems
2. analyse the financial and management accounting techniques that are used to record financial information

LO1 Assessment Criteria 1.1 1.2 Extension Activities

To achieve a Merit the materials must evaluate the benefits of financial and management accounting systems for a specific business organisation.

LO1 1M1 

To achieve a Distinction the materials must evaluate how a specific business organisation integrates financial and management accounting systems into their organisational management processes.

LO1 1D1 

© ATHE Ltd Financial and Management Accounting Techniques for Managers V2.0 2022

Task 2 

Due to a reduction in sales revenue and a fall in group profits, the Board of Directors is investigating inventory management, credit control and current liquidity in order to make meaningful comparisons and decisions.

Your line manager has asked a few staff in the department to analyse the final accounts of competitors and you have been selected to join this group.

You need to produce a paper for a meeting with your line manager that:

1. analyses the components of working capital and explains how business organisations can effectively manage working capital.
2. uses ratios to measure the performance of a business organisation

LO2 Assessment Criteria 2.1 2.2 Extension Activity

To achieve a Merit your paper must also evaluate the usefulness of ratio analysis, when assessing

organisational performance.

LO2 2M1 

Task 3 

Your line manager has been pleased with your work to date and has invited you to a meeting with the Marketing Director.

The Marketing team has completed research on a number of projects to encourage customers to return to the stores.