Bates Boatyard Case

UNIVERSITI TEKNOLOGI MARA (UiTM)

MASTER IN FORENSIC ACCOUNTING AND FINANCIAL CRIMINOLOGY

MAC700

MANAGEMENT CONTROL AND DECISION MAKING

Group Assignment 1

Bates Boatyard Case

Prepared for

Prof. Dr. Ibrahim Kamal Abdul Rahman

Prepared by

Azizah Hj. Daud 2012695224

Mohd Roshidi Noor 2012873046

Mohamad Azizal Abd Aziz 2012685348

Assignment 1 – case Bates Boatyard

Masukkan azie punya part kat sini. Tq shidi haha

Sarah should consider segregating her new business entity into several different profit centres as mentioned in the above table. As we can see in this case, Sarah should consider to separate her business into 5 main core businesses which are providing boat storage facilities, service for hauling and launching the boat from wharf, providing restoration work including painting and finishing for boat, constructing the new boat or vessel and lastly offering the wide range of marine hardware and supplies that will includes fishing tackles, sporting goods and refreshments.

Apart from boat storage which will only operates during winter and boat construction which will not operates in the winter, other profit centres that she has will continually run for all over the season. Hence, this is a good opportunity for Sarah to make a profit. Marine world is not something new for Sarah. Her vast experience while servicing in the Navy could help her steer the business to a good shape. However, lack of knowledge in managing the business entity will limit her capability in producing the good result as desired. Thus, she has to consider and being advised to apply a simple accounting technique in determining the costing and pricing mechanism of her new acquired company.

As a newcomer, it is important to know how to set a costing structure to make sure that the business will produce a good return to her. We would suggest that she used the standard costing as a simple technique in determining the cost structure of...