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cmt2 Tutorial Week 2 Requirements

The document provides instructions for a cost management tutorial, including exercises analyzing a case study on vertically integrated industries, defining structural and executional cost management, and recommending how three roommates should fairly divide their rental costs and electricity bills based on room size and utility usage.

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67 views3 pages

cmt2 Tutorial Week 2 Requirements

The document provides instructions for a cost management tutorial, including exercises analyzing a case study on vertically integrated industries, defining structural and executional cost management, and recommending how three roommates should fairly divide their rental costs and electricity bills based on room size and utility usage.

Uploaded by

BáchHợp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

ACCT20001 Cost Management - Tutorial Week 2:

1. Bhimani et al 6th / 5th edition, Exercise 1.13.

2. Find ONE short article from the financial/business press relevant to management/cost accounting.
Write a short paragraph outlining the management/cost accounting issue addressed in the article. Be
prepared to discuss in class.

3.
Required:

a. Why might Merino Designs choose to operate across all main components of the industry value-
chain (highly vertically integrated)?

b. What are structural cost management and executional cost management. Provide examples of
structural cost management decisions and executional cost management tools for Merino
Designs.

4. Three friends (Alice, Brendon and Carl) who are from the suburbs recently graduated from the second-best
university in Melbourne. They decided that sharing a flat would be a great idea as this would mean that they
could spend more time together and shorten their commuting time to their workplace in the city. After weeks
of looking, they finally found a suitable 3-bedroom / 1 bathroom flat and were all excited about this new
phase of their lives. However, the honeymoon phase soon ended and the realities of living under one roof
started to set-in. Having finally agreed on room allocations, the next challenge facing the trio would be to
decide on the best way to divide the following cost (or expenses):

• The weekly rent


• Electricity

How do you suggest they divide up these costs? The method you recommend should be fair and meet the
cost vs benefit test.

Additional information:

Dimensions of rental property


• Total size: 100 square metres
• Bedroom A: 12 square metres (no ensuite) - Alice
• Bedroom B: 10 square metres (no ensuite) - Brendon
• Bedroom C: 8 square metres (no ensuite) - Carl

Electricity cost consists of a fixed supply charge and a usage charge


• Fixed charge (supply charge): $30 each month
• Usage charge = 0.20 per kWh (kilowatt hour)

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