This QB3002 – Management Accounting assignment explores  CIMA Strategic Scorecard. So,Prepare a report to the group Management Team outlining how an appropriate transfer pricing policy

QB3002 – Management Accounting : CIMA Strategic Scorecard

QB3002 – Management Accounting.  Where a question is in several parts, the percentage or marks indicated shows the proportion of time you may wish to spend on that part. Each question makes an equal contribution to the final grade. Taking photographs of hand-written answers, imported into a WORD document and uploaded will be allowed for QB3002.

However, there are risks and important things to consider: (1) you can ONLY upload ONE document as your answer; (2) submitting a CLEAR PHOTO which is in-focus with good lighting and not missing any of your answers is YOUR RESPONSIBILITY (similar to you submitting good handwriting in a “normal exam”). IF we cannot read it, we CANNOT mark it… You are strongly advised to practise doing this before the exam… probably best to use a black pen, not pencil… (3) please LABEL all your answers with the exam question number so it is CLEAR TO STAFF what question (and sub question) you are answering; and (4) typed answers for written (non-number) questions is still best for us to mark. Continued on next page… Page 2 of 7 Section A: Answer only one question Each question is worth 30 marks

QB3002 – Management Accounting : CIMA Strategic Scorecard


Outline the main features of the Balanced Scorecard and discuss how the CIMA Strategic Scorecard differs from it. (30 marks)


Kirk Components is a member of the Crichton Group of companies. Kirk Components supplies parts to Melville Castle, another company in the Crichton Group, as well as selling to its external market. Also, Kirk Components has the capacity to produce up to 50,000 units of output per week. The external market demand is 35,000 units per week, and Melville Castle demands 10,000 units per week. Crichton Group company policy is to set transfer prices that will encourage the maximization of group profits and to evaluate the performance of group companies on the basis of their individual profits.


Required Prepare a report to the group Management Team outlining how an appropriate transfer pricing policy would provide a satisfactory basis for appraising the performance of the individual companies. Comment on the implications of this policy for the maximization of group profits.


Detailed Instructions


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