Arab Open University
BE310: TMA – Summer 2013
Cut Off Date: 27
th of July 2013
About TMA:
The TMA covers the cost accounting concepts and practices in the businesses. It is marked out of 100 and is worth 20% of the overall assessment component. It is intended to assess students’ understanding of some of the learning points within chapters
1 to 3. This TMA requires you to apply the course concepts. The TMA is intended to:
- Assess students’ understanding of key learning points within chapters 1 to 3.
- Increase the students’ knowledge about the reality of the cost and management accounting as a profession.
- Develop students’ communication skills, such as memo writing, essay writing, analysis and presentation of material.
- Develop the ability to understand and interact with the nature of the managerial accounting tools in reality.
- Develop basic ICT skills such as using the internet.
The TMA:
The TMA requires you to:
- Review various study chapters of ‘Cost Accounting’ Book and apply some of the concepts within it.
- Conduct a simple information search using the internet.
- Present your findings in not more than 1,200 words. The word count excludes headings, references, title page, and diagrams.
- You should use a Microsoft Office Word and Times New Roman Font of 14 points.
- You should read and follow the instructions below carefully. Each part of the process will carry marks for the assignment.
Criteria for Grade Distribution:
| Criteria | Content | Referencing | Structure and Presentation of ideas | Total marks |
| Financial Reporting on the Internet (Simpson Manufacturing Inc.) |
||||
| Marks | 100 | (5) | (5) | 100 |
The TMA Questions
Financial Reporting on the Internet
(Simpson Manufacturing Co.)
Simpson Manufacturing Co., Inc., a Delaware corporation, (the “Company”), through its subsidiary, Simpson Strong Tie Company Inc. (“Simpson Strong Tie” or “SST”), designs, engineers and is a leading manufacturer of wood construction products, including connectors, truss plates, fastening systems, fasteners and pre fabricated shearwalls, and concrete construction products used for concrete, masonry and steel, including adhesives, chemicals, mechanical anchors, carbide drill bits, powder actuated tools and fiber reinforcing materials. SST markets its products to the residential construction, light industrial and commercial construction, remodeling and do it yourself (“DIY”) markets. The Company believes that SST benefits from strong brand name recognition among architects and engineers who frequently specify in building plans the use of SST products. SST has continuously manufactured structural connectors since 1956.
Access the Analog Devices Inc. web page at:
www.simpsonmfg.com From Simpson’s home page, choose “FINANCIALS & MEDIA”, and then “Financial Reporting”, followed by clicking on “Annual Report” to download 2012 annual report on Form 10 K (PDF).
Instructions:
Use the annual report to answer the following questions:
- A schedule of the cost of finished goods manufactured is a helpful tool in determining the per unit cost of manufactured products. Explain several ways in which information about per unit manufacturing costs is used by:
- Simpson Manufacturing Company’s financial accountants, and
- Simpson Manufacturing Company’s management accountants.
[Marks: 6 marks for each point = 12]
- Describe how Simpson Manufacturing Company’s strategy stands up against industry rivalry.
[
10 Marks
]
- Can you use Simpson Manufacturing Company’s financial statements to calculate contribution margin? Explain and support your answer with suitable figures from the Simpson Manufacturing Company’s 2012 annual report.
[8 Marks]
- Write a report in no more than 400 words about Simpson Manufacturing Company. This report should cover the following points:
- Is it a service, merchandising, or manufacturing company? How can you tell? What is its primary product or service?
- SMG&A.
- Gross profit margin for each activity during the most three recent years (2012, 2011, and 2010) and comment on its trend.
- What is the amount of CoGS for the most three recent years (2012, 2011, and 2010)? What kinds of costs are included in the Cost of Sales account?
[Marks:
6 marks for each point = 24
]
- What categories of inventory Simpson Manufacturing Company shows on the balance sheet for the most two recent years (2012 and 2011)? Support your answer by suitable figures from the Simpson Manufacturing Company’ annual report.
[8 Marks]
- Using the income statement (Consolidated Statements of Operations, p. 66 of the 2012 annual report) and inventory information from the Consolidated Balance Sheets and notes, calculate the cost of finished goods manufactured for 2012 annual year.
[8 Marks]
- “Value chain refers to the sequence of business functions in which customer usefulness is added to products or services of a company”. Provide evidence from the annual report of Simpson Manufacturing Company concerns about its value chain.
[18 Marks]
- Recast the “Consolidated Statements of Operations”, p. 66, in the contribution margin format using amounts from the 2012 year (Ignore tax). For this computation assume that 40% of cost of sales and operating expenses are fixed.
[
12 Marks
]
In your answer, you should explain each point or inquire separately. Use the following headings (below) to make up the different sections of your answer:
| PT3 form (Cover) | Available on LMS |
| Contents | Title and contents page |
| TMA | Financial Reporting on the Internet (The case of Simpson Manufacturing Company) |
| Reference list | Recorded according to the Harvard style Available on LMS |
|
Attachments:
BE310 TMA Su….doc