AYB321 Strategic Management Accounting
Advanced study of strategic accounting principles and their application in management
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AYB321 Semester 1, 2011 Page 1
AYB321 Strategic Management Accounting
Tutorial Solutions
TUTORIAL 4
BUDGETING SYSTEMS
Analytical Thinking, Critical Thinking and Problem Solving Questions:
Scenario for all three analytical questions:
Big Byte Computing Co. (BBC) develops specialised software for the security industry. BBC
has two ‘off the shelf’ software products, one that manages the storage and retrieval of
surveillance video, and the other that manages alarm systems. They also provide a
consulting service that assists businesses to customise and implement these software
solutions. BBC has a product-based structure, with a business unit manager responsible for
each of the three products, as follows:
A high level description of BBC‘s annual financial planning and control process is as follows
(BBC has a 30 June year end):
January: The senior executive team meets to review BBC’s current strategy, and
produce a ‘strategic plan’ for the following five financial years. This strategic plan,
including high level profit expectations, is communicated to the wider management
team.
Early February: The three BU managers produce their budgeted income statements
for the following financial year, and submit them to the budget committee
(consisting of the Chief Executive Officer, Chief Finance Officer and the Executive
Manager HR and Strategy) .
The budget committee reviews the BU’s submissions, and communicates any
changes required.
CEO
Manager:
Surveillance
Software
Manager:
Alarm System
Software
Manager:
Consulting
CFO
EM: HRS
AYB321 Strategic Management Accounting
Tutorial Solutions
TUTORIAL 4
BUDGETING SYSTEMS
Analytical Thinking, Critical Thinking and Problem Solving Questions:
Scenario for all three analytical questions:
Big Byte Computing Co. (BBC) develops specialised software for the security industry. BBC
has two ‘off the shelf’ software products, one that manages the storage and retrieval of
surveillance video, and the other that manages alarm systems. They also provide a
consulting service that assists businesses to customise and implement these software
solutions. BBC has a product-based structure, with a business unit manager responsible for
each of the three products, as follows:
A high level description of BBC‘s annual financial planning and control process is as follows
(BBC has a 30 June year end):
January: The senior executive team meets to review BBC’s current strategy, and
produce a ‘strategic plan’ for the following five financial years. This strategic plan,
including high level profit expectations, is communicated to the wider management
team.
Early February: The three BU managers produce their budgeted income statements
for the following financial year, and submit them to the budget committee
(consisting of the Chief Executive Officer, Chief Finance Officer and the Executive
Manager HR and Strategy) .
The budget committee reviews the BU’s submissions, and communicates any
changes required.
CEO
Manager:
Surveillance
Software
Manager:
Alarm System
Software
Manager:
Consulting
CFO
EM: HRS
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Document Details
University
Queensland University of Technology
Subject
Accounting