Porsche Changes Tack

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3104AFE STATEGIC MANAGEMENT ACCOUNTING INDIVIDUAL ASSIGNMENT Assessment weighting: 15% Due date: 19 April 2013, 5 pm. Submission: Gold Coast campus students: must submit the assignment to the Assignment Collection Centre, Library, Gold Coast Campus Nathan campus students: must submit the assignment to the Assignment Collection Centre , Library, Nathan Campus Note: To be fair to all students in this course: 1. No extensions will be granted. 2. Convenor/ tutors will not give any feedback on the work prior to submission. Marking criteria: Ability to apply complex ideas to a case study (ability to apply the relevant theory to the scenario ) To be able to choose between competing contingencies in a business context (ability to apply the relevant theory to the scenario) Ability to communicate response in a business context ( complete and easily understandable statement ) To identify issues within the case and apply appropriate solutions (ability to identify and apply the correct theory ) : 25% 25%

20% 30 %

ASSIGNMENT Chrystal Mitchell, factory manager, was given the task of producing 120,000 bolts used in the manufacturing of small twin- engine craft. Directed by his divisional manager to give bolt production priority over other jobs, he had two weeks to produce the units. Meeting the delivery date was crucial for renewal of a major contract with a large aircraft manufacturer. Each bolt requires 20 minutes of direct labour and 30 grams of metal. After producing a batch of bolts, each bolt is subjected to a stress test. Those that pass are placed in a carton, which is tamped “ inspected by inspector no____” ( the inspector’s identification number is inserted). Defective units are discarded, having no salvage value. Because of the nature of the process, rework is not possible. At the end of the first week, the factory had produced 60,000 acceptable units and used 24,000 direct labour hours- 4000 hours more than the standard allowed. Furthermore, a total of 65,000...
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