Criteria for Assessment
This assignment is designed to assess the following learning outcomes:
1. Apply numeracy skills and qualitative judgment to aid financial decision making.
2. Understand apply and evaluate management accounting concepts and techniques in decision making.
This assignment requires you to complete the following tasks:
You have just started a new job as general manager of Vardy Virtual Views Ltd a UK-based company whose principal activity is the manufacture of digital video equipment, which it distributes to retailers. The last few years have been very difficult for the company, and it has survived through the support of its parent company, to whom it currently owes a significant debt. However, the company now intends to engage in a number of income generating, cost-saving and efficiency measures in order to improve its financial performance. Although these may increase costs in the short-term, management hope they will enhance awareness of the company’s products, increase sales and reduce costs and return the company to profitability.
After discussions with a number of senior managers at Vardy Virtual Viewing Ltd, you have concluded that the current budgeting system is not operating effectively and you believe it requires significant reform. You have carried out some background research on a number of matters and developments at Vardy Virtual Viewing Ltd and have obtained the following documents.