The objective of this assignment is to assist in developing practical and soft skills required by management accountants. The skills included below are also crucial to gaining employment and maintaining ongoing career success.

1. Critically analyse management and cost accounting theories and techniques, applying them to a specific business planning and control scenario.
2. Evaluate and appraise diverse ethical, environmental, social, and economic perspectives, and their impact on management decision-making in the given scenario.
3. Communicate proposals, solutions, and recommendations effectively using industry-relevant approaches to support management decisions.

Background The scenario in the task given here closely mirrors a real-life business decision-making process. It centres around the United Nations Development Sustainability Goal 11, which is "Sustainable Cities and Communities. The primary objective of this goal is to foster the development of inclusive, safe, and sustainable cities and human settlements by promoting affordable and accessible housing, public transport, green spaces, and effective urban planning and management. Additionally, the goal seeks to tackle the challenges arising from rapid urbanization, including slum upgrading, disaster risk-reduction, and air-pollution mitigation. Furthermore, the given case study also addresses the critical role that Higher Education institutions play in achieving the Sustainable Development Goals (SDGs). This unit prepares you to drive positive changes and contribute to a better future, which is undoubtedly, our responsibility towards our society and planet.

Additionally, this assessment aligns with other Sustainable Development Goals beyond Goal 11, such as SDG 8 (Decent Work and Economic Growth), as the housing crisis can impact economic growth and individual opportunities. Moreover, it relates to SDG 3 (Good Health and Well-being) since inadequate and unsafe housing can significantly affect mental health and overall well-being.

This assessment is essentially about decision making, and in any decision-making, ethical and legal aspects should be considered. Ethical decisions prioritizing inclusivity and social well-being can foster stronger community cohesion, reduced disparities, and improved quality of life for all individuals. However, it is important to recognize that merely adhering to legal requirements without considering their ethical dimensions may not always lead to positive outcomes. Legal actions, if not guided by ethical considerations, can perpetuate injustices, reinforce social inequalities, and exclude marginalized communities from opportunities. Therefore, finding a balance between ethical principles and legal compliance is vital in ensuring sustainable and equitable solutions that genuinely benefit society and contribute to the broader goals, such as achieving the Sustainable Development Goals. By making responsible and thoughtful decisions, guided by both ethical and legal perspectives, we can build resilient, sustainable, and thriving communities for future generations.

What you are required to do

The task requires you to use appropriate and correct computational analysis using Excel to reflect your expertise in the use of Excel in the evaluation of the situation and conducting calculations to support your findings. Findings and associated recommendations are required to be presented in the form of a professional report advising companies and managers about how your recommendations can assist companies in better planning and creating a sustainable society and planet.

PART 1_Group submission (3-4 members): Written report of approximately 1,500 words, accompanied by an Excel worksheet.

Then, in a separate submission:

PART 2_ Individual submission: Discussion of ethical and legal decision-making, and their long-term implications (1,000+/-10% words): in this part, you need to discuss any ethical, social, environmental, or/and economic issues involved in the project, which may affect our community in Tasmania, in the long run.

PART 3_ Individual submission: Prepare an individual self-reflection document on teamwork.

In this part, you are required to prepare a self-reflection document on your teamwork experience and submit it individually on MyLO at the specified location.

Case Study: the housing crisis

The housing crisis has had a devastating impact on vulnerable individuals in Tasmanian society, including low-income groups, students attending the University of Tasmania, the workforce, and other disadvantaged groups. Many of these individuals are currently facing challenges in finding affordable housing, leading some to live in overcrowded and unsafe conditions or even experience homelessness. While securing suitable and affordable housing was not always a major challenge in Tasmania, the situation has worsened since 2016, particularly after the implementation of the growth strategy in 2015. This exacerbation has been further intensified by the ongoing economic impact of the pandemic, with many Tasmanians, including those who have moved to the region for work or study, now struggling to secure employment, having lost their jobs, or experiencing reduced income.

According to recent data the housing crisis has reached alarming levels, with a significant increase in homelessness and housing insecurity over the past two decades. Tasmania's rate of homelessness per 10,000 people has increased from 24 people to 42 people per 10,000, a 75 per cent increase in 15 years (Tasmanian Times, 2023). In 2022, the state recorded a record number of homeless individuals, with a staggering 15% rise compared to the previous year. Furthermore, the number of low-income families struggling to secure affordable housing has also risen significantly, putting immense pressure on social services and support systems.

Trends indicate that the housing affordability index in Tasmania has worsened steadily since 2016, coinciding with the implementation of the state's growth strategy in 2015 (UTAS, 2021). This strategy aimed to attract investments and bolster economic development, leading to an influx of new residents and increased demand for housing. However, the housing supply failed to meet this heightened demand, resulting in soaring property prices and rental rates, making housing unattainable for many Tasmanians.

Further, inflation has had a significant impacts for disadvantaged groups (those without a university degree, those with health condition or disability) and younger demographics (UTAS, 2022). Herein, increasing rents and cost-of-living pressures have further eroded their savings, impacting their ability to secure an accommodation.

Despite the escalating severity of the housing crisis, marginalized voices, particularly those of international students, often go unheard. Many international students may be reluctant to voice their concerns or may be unaware of their rights and the available support. As a result, there has been a lack of effective action and accountability from government officials and real estate agents in addressing the root causes of the crisis and providing meaningful assistance to those in need.

The ongoing housing crisis in Tasmania is not only a matter of social justice but also poses a significant threat to the wellbeing and prospects of the people residing in the region. Inadequate and unsafe housing can have a profound impact on individuals' mental health, academic and work performance, and overall quality of life, ultimately affecting the broader Tasmanian economy.

Amidst this challenging situation, some individuals seek to take advantage of the crisis. For instance, Denise, a 60-year-old woman residing in Hobart, Bellerive, in a new house with a double garage, seeks to capitalise on the housing crisis by converting her garage into one of the three options: (1) a bedroom; (2) a bedroom with ensuite bathroom; (3) a bedroom, ensuite bathroom and kitchenette for long term rental or short-term rental such as Airbnb. Converting a double garage into accommodation is a significant project, with costs that can vary depending on factors such as the size of the garage, the extent of the renovation, and the materials used. There are also several accounting implications that must be considered, such as financing the conversion, determining what rent to charge, and ensuring that the conversion meets all building and safety regulations. Denise consulted with professionals and based on her plan, here is a detailed breakdown of the estimated costs she might incur:

Initial Consultation and Design that cost anywhere from $500 to $3,000, depending on the extent of the project.

Structural Alterations: converting the garage into a living space will require extensive structural alterations, such as installing walls, insulation, and electrical and plumbing systems. The cost of these can vary significantly, based on the specific requirements of the project, but typically range from $20,000 to $50,000.

Windows and Doors: windows and doors must be installed to meet building codes and create a comfortable living space. The cost of windows and doors can vary, depending on size and quality, but typically ranges from $3,000 to $10,000.

Flooring: Denise will need to install a new flooring system to make the garage a liveable space. The cost of this can vary based on the type of flooring she chooses, but typically ranges from $5,000 to $10,000.

Kitchen and Bathroom: If she plans to include a kitchen and bathroom, the cost can increase significantly. Kitchen appliances, cabinets, and countertops can cost between $10,000 and $20,000, while a basic bathroom installation can range from $5,000 to $10,000.

Permits and Fees: Depending on her location, Denise may need to obtain permits from local authorities, which can cost at least $1,000.

A separate electrical panel: The estimated cost to install a separate electrical panel for converting a double garage into a living space is typically around $800 to $2,500.

The costs associated with converting the garage for Airbnb purposes could be similar to those outlined in the previous options, including initial consultation and design fees, structural alterations, windows and doors installation, flooring, and potentially a kitchen and bathroom. However, to make the Airbnb unit attractive to potential guests, Denise may need to invest in stylish and functional furnishings, dcor, and amenities. This could include comfortable bedding, modern appliances, Wi-Fi access, and other essential features that cater to the needs of travellers. By offering a cozy and inviting space, she can enhance the appeal of her Airbnb unit and potentially command higher rental rates.

Additionally, marketing and managing the Airbnb rental will require some extra effort and resources. Denise may need to invest in photography for the listing, engage in online advertising, and ensure smooth communication with guests. If she prefers a more hands-off approach, she can consider using a property management service for handling bookings, check-ins, and guest inquiries.

She currently has $35,000 in her bank account and is open to obtaining a bank loan if necessary.

Note: to ensure the expenses are both manageable and realistic within Denise's budget, it is recommended to utilize either the minimum or average cost ((Minimum value + Maximum value) / 2) using the Australian data available online

In a separate Word document, you will be exploring the ethical and legal aspects of Denise's project, in relation to the housing crisis in Tasmania. Your response should be 1,000+/-10%, and must cover the following areas:

• Question 1: Understanding Ethical and Legal Decision-Making in Denise's Project:
• In your exploration of Denise's project and its relation to the housing crisis in Tasmania, discuss the concepts of 'ethical decision-making' and 'legal decision-making.' How do these two principles apply to Denise's specific project? Consider the importance of adhering to legal requirements and regulations, as well as the ethical implications of her decisions and actions. Provide concrete examples to illustrate the intersection of legal compliance and ethical considerations in her project.
• Question 2: Evaluating the Ethical Nature of Denise's Decisions and Actions:
• Share your opinion on whether Denise's decisions and actions, which meet all the legal requirements of her projects, can be deemed inherently ethical. Formulate a well-reasoned rationale to support your argument, considering the broader implications of her choices beyond legal compliance. Consider the potential impacts on stakeholders, the community, and vulnerable populations, and how ethical decision-making transcends mere adherence to legal standards.
• Question 3: Unravelling the Adverse Effects of Legally Endorsed Decisions on Communities:
• Examine the significant adverse effects that decisions and actions legally endorsed in Denise's project may have on communities, with particular attention to environmental, social, and economic aspects in the long term. Draw from in-depth research into the housing crisis in Tasmania to provide concrete examples illustrating how legal compliance alone may not guarantee positive outcomes. Analyse the potential consequences of disregarding ethical considerations in development projects and explore sustainable alternatives that foster community well-being.

Your response should be well-researched, emphasize theoretical frameworks, case studies, and real-world examples, clearly presented and supported by relevant references.