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HA2011 Management Accounting TRIMESTER 3 / 2017


Instructions: 1. This assignment is to be submitted in accordance with assessment policy stated in the Subject Outline and Student Handbook. 2. It is the responsibility of the student who is submitting the work, to ensure that the work is in fact her/his own work. Incorporating another’s work or ideas into one’s own work without appropriate acknowledgement is an academic offence. Students can submit all assignments for plagiarism checking (self-check) on Blackboard before final submission in the subject. For further details, please refer to the Subject Outline and Student Handbook. 3. Maximum marks available: 20 marks. 4. Due date of submission: Week 10 5. Assignment should be up to 2,000-2,500 words with maximum of 04 members in each group. Please use “word count” and include in report. Important Note: Please submit Assignment through SafeAssign.

Required: Your consulting firm has been hired to help HLW to evaluate its new fee structure. Explain the following issues to report to your managing director:

a) Will HLW’s new membership plan and fee structure improve its ability to plan its cash receipts? Explain. (2marks)

b) Estimate the effect on sales revenue resulting from the planned change in fee structure for the next financial year, which starts 1 October and ends on 30 September. State any assumptions that you need to make. (5marks)

c) HLW should evaluate the new membership plan and fee structure completely before it decides to adopt or reject it. Identify the key factors that HLW should consider in its evaluation. (3marks)

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