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1 – 4 of 4Siraj A. Bhayo, Nimra Gul Pathan, Ghulam Abbas, Narandar Kumar and Nazeer Ahmed
After completion of the case study, the students will be able to define and compute equivalent units of production, apply management accounting procedures for manufacturing…
Abstract
Learning outcomes
After completion of the case study, the students will be able to define and compute equivalent units of production, apply management accounting procedures for manufacturing businesses (Furqani Sugar Mills), calculate product cost and track product cost flows and prepare process cost summary using the weighted average method. By studying this case, learners will gain insights into the challenges and financial complexities faced by a sugar mill and how strategic decisions and economic analysis can impact the sustainability and profitability of such businesses.
Case overview/synopsis
This case study explained the problem Mr Zoraiz, chief financial officer (CFO) of Furqani Sugar Mill, was facing. The problems started in the month of November 2020. Mill’s owner Mr Jabbar asked him for suggestions that employees should not be laid off. So he was analysing and estimating the cost of production when increasing production. He was focusing on cost reduction in process or increasing production, and utilization of resources efficiently and effectively. This case study focused on the market segment of the sugar industry for process costing. Furqani Sugar Mill, founded in 1992 in Pakistan (Company Document), had a noble mission to improve the lives of local peasants by producing sugar and molasses. Pakistan heavily relied on agribusiness, particularly sugar production, which contributed significantly to manufacturing. However, Furqani Sugar Mill faced a dire situation despite its vital role. During the sugarcane season, it struggled due to a shortage of raw materials, primarily sugarcane. Zoraiz, the CFO, grappled with running the mill below total capacity in recent years due to two significant issues: government-fixed sugar prices and limited sugarcane supply from local farmers. The high cost of sugarcane hindered Zoraiz’s desire to operate at total capacity. Zoraiz, Furqani’s CFO, must decide what he can do so that the mill can operate at its total capacity. The future of Furqani Sugar Mill hung in the balance as Zoraiz navigated complex financial decisions while striving to uphold the mill’s legacy and commitment to the local community.
Complexity academic level
This case study is suitable for teaching in several modules, notably managerial accounting and control systems, management accounting decision-making and cost and management accounting. Specifically, it covers performance management and process costing in management accounts. It is appropriate for teaching at the undergraduate and postgraduate levels.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 1: Accounting and finance.
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Manas Ranjan Bhowmik and Shantanu Baidya
Industry 4.0 broadly implies the digital transformation of industrial works. In India’s industrial arena, the textile industry is extremely important in the non-farm sector, both…
Abstract
Industry 4.0 broadly implies the digital transformation of industrial works. In India’s industrial arena, the textile industry is extremely important in the non-farm sector, both regarding value addition and employment generation. This chapter attempts to think about new avenues of research while integrating different streams of literature. For example – literature on innovation, literature on the industrial ecosystem, literature on industry 4.0, and consequences for the Indian economy – all such streams of literature have been considered synoptically to think of a new research program. The focus of this research program is to explore pathways of synergizing these different literatures and thinking about how to integrate and apply innovations for the betterment of the unorganized manufacturing sector in India. The unorganized manufacturing sector is a vast area in India, so here, we focus on some specific sections of the textile sector which is the handloom weaving industry. How have changes in techniques happened within the handloom weaving sector so far? What are the possible ways of applying these new technologies in altering the products and processes within the textile sector? What can the government do in this regard? These are the research questions that need attention in today’s context, and we have not found serious works in this direction in the context of the Indian economy; hence, we are investigating these issues in this chapter.
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This paper aims to unravel the puzzle that the United Kingdom’s high-quality government accounting and fiscal architecture is associated with low-quality outcomes, including poor…
Abstract
Purpose
This paper aims to unravel the puzzle that the United Kingdom’s high-quality government accounting and fiscal architecture is associated with low-quality outcomes, including poor productivity growth, high public debt, public services which do not meet citizen expectations and historically high levels of taxation. It contributes to public sector accounting research in the fields of fiscal transparency and governance.
Design/methodology/approach
This paper uses Miller and Power’s (2013) economization framework and Dunsire’s (1990) concept of collibration to explain why being a global leader in public sector accounting reform and in fiscal and monetary architecture has not protected the UK from weak governance. The intersection of economization’s roles of accounting with modes of government accounting clarifies the puzzle.
Findings
Whereas accruals government accounting contributes to fiscal transparency, this is not a sufficient condition for well-judged policy and its effective application. Collibration is the dominant mechanism for mediation in the fiscally centralized UK, but it has failed to deliver stable outcomes, in part because Parliament is limited in its ability to hold back inappropriate behaviour by the Executive. Subjectivization has disrupted adjudication because governments at all levels resist constraints on their behaviour, with unpredictable and often damaging consequences.
Originality/value
This paper provides insights through the combined lens of economization and modes of government accounting, demonstrating the practical value of this conceptualization. Although some causes for unsatisfactory outcomes are specific to the UK, there are cautions for accounting and fiscal reformers in other countries, such as Member States of the European Union.
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Ilse Maritha Makkink, Blanche Steyn and Hannes Christo Bezuidenhout
This study aims to investigate the role of freight forwarding companies in detecting and reporting trade-based money laundering. The proximity of freight forwarding companies to…
Abstract
Purpose
This study aims to investigate the role of freight forwarding companies in detecting and reporting trade-based money laundering. The proximity of freight forwarding companies to shipping-related trade-based money laundering red flags places them in an ideal position to detect suspicious transactions.
Design/methodology/approach
The study used semi-structured interviews with expert participants in freight forwarding shipping and compliance aspects around freight forwarding. This study focuses on the South African context.
Findings
Freight forwarding companies are well-positioned to detect, investigate and report on trade-based money laundering schemes. However, the companies are not always aware of the guidelines designed to assist in identifying trade-based money laundering schemes. Thus, freight forwarding companies develop internal processes to identify trade anomalies but are often unable to link trade anomalies to illegal financial flows and trade-based money laundering schemes.
Research limitations/implications
The current regulations on money laundering can be extended to freight forwarding companies by the respective regulators for enhanced anti-money laundering protection. This study is limited to freight forwarding companies in a South African context.
Practical implications
Increased awareness among staff in freight forwarding companies can assist them in identifying trade-based money laundering red flags to detect and prevent trade-based money laundering schemes.
Social implications
This paper assists other role players and policymakers in the trade process to create a better awareness of trade-based money laundering. The limited obligations on freight forwarding companies to comply with anti-money laundering regulations lead to a more volunteer-like compliance practice.
Originality/value
To the best of the authors’ knowledge, this is the first paper that offers insight into the role of freight forwarding companies in detecting trade-based money laundering in South Africa.
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