1 SUNDERLAND BUSINESS SCHOOL Module Strategic Management Accounting APC309 Individual assignment Hand in Date: Monday 8th July 2013 General Information 1. Weighting – 100% of the marks for this module 2. This is an individual assignment of about 3,000 words (plus or minus 5%), excluding appendices and bibliography. The word count MUST be shown on the front of the assignment. 3. There are a number of parts to this assignment. Each part is equally weighted. All parts are discreet from one another. 4. All of the learning outcomes for the module are being assessed in this assignment. The learning outcomes are shown in the section entitled “Marking Guide”, which is further on in this document. 5. The University’s policy on cheating collusion and plagiarism will be applied to this piece of work. 6. The hand in date is: Requirements: Part a. You are required to critically evaluate the following statement: “Both Return on Investment (ROI) and Economic Value Added (EVA), when used as performance measures in an organisation, encourage managers to be short-term in their focus and decision making”. If your critical evaluation tends to agree with the statement, briefly outline how the short term nature of such measures can be overcome. Part b. Many organisations use transfer pricing when transferring products between different divisions of the same organisation. You are required to discuss in detail the advantages and disadvantages of each of the following four methods: 1) Market based transfer prices; 2) Full cost transfer prices; 3) Cost-plus a mark-up transfer prices; and
2 4) Negotiated transfer prices. Guidance: Students are encouraged to be inquisitive and innovative in their approach as to what should be included in this report. The following may be of some use in providing guidance as to what could possibly be included, although this is in no way meant to be prescriptive. The aim of the assignment is to help you understand how key areas of strategic management…