ACCA资料 真题 f5_2014_jun_a
2014年12月ACCA-F5考试真题答案
AnswersFundamentals Level – Skills Module, Paper F5 Performance Management December 2014 AnswersSection A 1ADivision A: Profit = $14·4m x 30% = $4·32mImputed interest charge = $32·6m x 10% = $3·26m Residual income = $1·06mDivision B: Profit = 8·8m x 24% = $2·112mImputed interest charge = $22·2m x 10% = $2·22m Residual income = $(0·108)m2 345DAll costs are included when using life cycle costing.AThis is the definition of a basic standard.BThe first statement is describing management control, not strategic planning.CNumber of units required to make target profit = fixed costs + target profit/contribution per unit of P1.Fixed costs = ($1·2 x 10,000) + ($1 x 12,500) – $2,500 = $22,000. Contribution per unit of P = $3·20 + $1·20 = $4·40. ($22,000 + $60,000)/$4·40 = 18,636 units.6 AProduct A B C D Selling price per unit Raw material cost Direct labour cost at $11 per hour Variable overhead cost Contribution per unit$160 $24 $66 $24 $214 $56 $88 $18 $100 $22 $33 $24 $140 $40 $22 $18 $46 $52$21 $60 –––– –––– –––– –––– Direct labour hours per unit Contribution per labour hour Rank 6 $7·67 2 8 $6·50 4 3 $7 2 $30 1 3 Normal monthly hours (total units x hours per unit)1,800 1,000 720800If the strike goes ahead, only 2,160 labour hours will be available. Therefore make all of D, then 1,360 hours’ worth of A (2,160 – 800 hrs).7 8B460 – 400 = 60 clients$40,000 – $36,880 = $3,120 VC per unit = $3,120/60 = $52Therefore FC = $40,000 – (460 x $52) = $16,080BIncrease in variable costs from buying in (2,200 units x $40 ($140 – $100)) = $88,000 Less the specific fixed costs saved if A is shut down = ($10,000) Decrease in profit = $78,000Only the first statement is correct. Traditional absorption costing tends to over-allocate costs to high vo products, notunder-allocate them.10 11BBy definition, a shadow price is the amount by which contribution will increase if an extra kg of material becomes available. 20 x$2·80 = $56.CNeither statement is correct. Responsibility is not assigned solely to senior managers as, for example, in a TQM enviro qualityis everybody’s responsibility. In addition, standard costing can be difficult to apply in dynamic situations.12 13AThe second statement is talking about flow cost accounting, not input/outputanalysis.DTarget 1 is a financial target and so assesses economy factors. Target 2 is measuring the rate of work handled by staff which is anefficiency measure. Target 3 is assessing output, so is a measure of effectiveness.14 15BIn comparison to participative budgeting, an advantage of non-participative budgeting is that it should be less time consuming, asless collaboration will be required in order to produce the budgets.CThe target costing process always begins with the target selling price being set. The required profit is then determine deductedfrom the target selling price to estimate the target cost. The target cost is then compared to the estimated current co and the costgap is then calculated.16 17AThis is a description of an incrementalbudget.ANew profit figures before salarypaid:Good manager: $180,000 x 1·3 = $234,000Average manager: $180,000 x 1·2 = $216,000Poor: $180,000 x 1·1 = $198,000EV of profits = (0·35 x $234,000) + (0·45 x $216,000) + (0·2 x $198,000) = $81,900 + $97,200 + $39,600 = $218,700 Deduct salary cost and EV with manager = $178,700Therefore do not employ manager as profits will fall by $1,300.18BSet-up costs per production run = $140,000/28 = $5,000Cost per inspection = $80,000/8 = $10,000Other overhead costs per labour hour = $96,000/48,000 = $2 Overheads costs of product D:$Set-up costs (15 x $5,000) Inspection costs (3 x $10,000) Other overheads (40,000 x $2)75,000 30,000 80,000––––––––185,00020This is an example of feedforward control as the manager is using a forecast to assist in making a future decision.AIf demand is inelastic or the product life cycle is short, a price skimming approach would be more appropriate.Section B 1 Chair Co(a) Learning curve formula = y = ax bCumulative average time per unit for 8 units:Y = 12 x 8–·415= 5·0628948 hours. Therefore cumulative total time for 8 units = 40·503158 hours.Cumulative average time per unit for 7 units:Y = 12 x 7–·415= 5·3513771 hours. Therefore cumulative total time for 7 units = 37·45964 hours.Therefore incremental time for 8th unit = 40·503158 hours – 37·45964 hours = 3·043518 hours. Total labour cost for 8th unit =3·043518 x $15 = $45·65277 Material and overheads cost per unit = $230 Therefore total cost per unit = $275·65277 Therefore price per unit = $413·47915 (b) (i) Actual learningrateCumulative number of seats produced 1 2 4 8Cumulative totalCumulative average hours per unit 12·512·5 x r 12·5 x r 2 hours 12·5 ? ? 34·3 12·5 x r 3Using algebra: 34·3 = 8 x (12·5 x r 3)4·2875 = (12·5 x r 3) 0·343 = r 3r = 0·70 The learning effect was 70% as compared to the forecast rate of 75%, meaning that the labour force learnt morequicklythan anticipated. (ii) Adjusted priceThe adjusted price charged will be lower than the original price calculated in part (a). This is because the incrementalcost of the 8th unit will be lower given the 70% learning rate, even though the first unit took 12·5 hours. W know thisbecause we are told that the cumulative time for 8 units was actually 34·3 hours. This is lower than t estimatedcumulative time in part (a) for 8 units of 40·503158 hours and therefore, logically, the actual incremental for the8th unit must be lower than the estimated 3·043518 hours calculated in part (a). Consequently, total cost willowerand price will be lower, given that this is based on cost. 2Glam Co Bottleneckactivity(a) The bottleneck may have been worked out as follows: Total salon hours = 8 x 6 x 50 = 2,400 each year. The capacity for each senior stylist must be 2,400 hours, which equatesto 2,400 cuts each year (2,400/1). Since there are three senior stylists, the total capacity is 7,200 hours or 7,2cuts eachyear. Using this method, the capacity for each activity is as follows: Cut Treatment16,000 4,800 Assistants Senior stylists Juniorstylists 48,000 7,200 9,600 9,600 The bottleneck activity is clearly the work performed by the senior stylists.The senior stylists’ time is called a bottleneck activity because it is the activity which prevents the salon throughput frombeing higher than it is. The total number of cuts or treatments which can be completed by the salon’s senior stylists is lessthan the number which can be completed by other staff members, considering the number of each type of staff availa andthe time required by each type of staff for each client.(b) TPARCut $Treatment$ Selling price 60 110Materials Throughput Throughput per bottleneck hour Total salon costs per BN hour (w1) TPAR 0·60 59·40 59·40 42·56 1·4 8 (7·40+0·6) 102 68 42·56 1·6Working 1: Total salon costs(3 x $40,000) + (2 x $28,000) + (2 x $12,000) + $106,400 = $306,400 Therefore cost for each bottleneck hour = $306,400/7,200 = $42·56Note: Answers based on total salary costs were $80,000 were also equally acceptable since the wording of quest wasopen to interpretation.3Hi Life Co Direct materials: Fabric WoodNote 1 2 $ 200 m 2 at $17·50 per m 2 20 m at $8·20 per m 30 m at $8·50 per m 3,500 164 2552 Direct labour: SkilledSemi-skilledFactory overheadsAdministration overheads50 hours at $24 per hour 300 hours at $14 per hour 20 hours at $15 per hour3 4 5 61,200 4,200 300 –––––––Total cost 9,619–––––– 1 2 Since the material is in regular use by HL Co, it is replacement cost which is the relevant cost for the contract.30 m will have to be ordered from the alternative supplier for immediate delivery but the remaining 20 m can be frominventory and replaced by an order from the usual supplier at a cost of $8·20 per m.3 4 5There is no cost for the first 150 hours of labour because there is spare capacity. The remaining 50 hours will be at timeand a half, which is $16 x 1·5, i.e. $24 per hour.HL Co will choose to use the agency workers, who will cost $14 per hour, since this is cheaper than pa existingsemi-skilled workers at $18 per hour ($12 x 1·5) to work overtime.None of the general factory costs are incremental, so they have all been excluded. How ever, the supervisor’s ove pay isincremental, so has been included. The supervisor’s normal salary, on the other hand, has been excluded becaus is notincremental. 6These are general overheads and are not incremental, so no value should be included for them.4 Jamair(a) The four perspectivesFinancial perspective – this perspective is concerned with how a company looks to its shareholders. How can it c valuefor them? Kaplan and Norton identified three core financial themes which will drive the business strategy: rev growthand mix, cost reduction and asset utilisation. Customer perspective – this considers how the organisation appears to customers. The organisation should as itself: ‘toachieve our vision, how should we appear to our customers?’ The customer perspective should identify the cus andmarket segments in which the business will compete. There is a strong link between the customer perspectiv therevenue objectives in the financial perspective. If customer objectives are achieved, revenue objectives should b Internal perspective – this requires the organisation to ask itself: ‘what must we excel at to achieve our finan and customerobjectives?’ It must identify the interna l business processes which are critical to the implementation of t organisation’sstrategy. These will include the innovation process, the operations process and the post-sales process. Learning and growth perspective – this requires the organisation to ask itself whether it can continue to impro and createvalue. The organisation must continue to invest in its infrastructure – i.e. people, systems and organisational procedures – inorder to improve the capabilities which will help the other three perspectives to be achieved.(b) Goals and measuresFinancial perspective Goal Performance measure To use fewer planes to transport customers Lease costs of plane per customerExplanation – operating efficiency will be driven by getting more customers on fewer planes. This goal and measur cover thecost side of this. Goal Performance measure To increase seat revenue per planeRevenue per available passenger mile Explanation – this covers the first part of achieving operating efficiency – by having fewer empty seats on planes.Customer perspective Goal Performance measure To ensure that flights are on time ‘On time arrival’ ranking from the aviation authorityExplanation – Jamair is currently number 7 in the rankings. If it becomes known as a particularly reliable airl customersare more likely to use it, which will ultimately increase revenue. Goal Performance measure To reduce the number of flights cancelled The number of flights cancelledExplanation – again, if flights are seen to be cancelled frequently by Jamair, customers will not want to use it needs to beperceived as reliable by its customers. Internal perspective Goal Performance measure To improve turnaround time on the ground ‘On the ground’timeExplanation – less time spent on the ground means fewer planes are needed, which will reduce plane leasing costs.However,it is important not to compromise the quality of cleaning or make errors in refuelling as a consequence of reducing on the ground time.Goal Performance measure To improve the cleanliness of Jamair’s planes The percentage of customers happy with the standard of the planes,as reported in the customer satisfaction surveys.Explanation – at present, only 85% of customers are happy with the standard of cleanliness on Jamair’s planes.couldbe causing loss of revenue. Goal Performance measure To develop the online booking system Percentage downtime.Explanation – since the company relies entirely on the booking system for customer booking of flights and c in, it iscritical that it can deal with the growing number of customers. Learning perspective Goal Performance measure To reduce the employee absentee rate The number of days absent per employeeExplanation – it is critical to Jamair that its workforce is reliable as, at worse, absent staff lead to cancelled flights. Goal Performance measureTo increase ground crew training on cleaning andrefuelling proceduresNumber of days’ training per ground crew member Explanation – if ground crew are better trained, they can reduce the number of minutes that the plane stays on ground,which will result in fewer planes being required and therefore lower costs. Also, if their cleaning is better, cus satisfactionand retention will increase. Note: Only one goal and measure were required for each perspective. In order to gain full marks, answers had to be specificto Jamair as stated in the requirements.5 Safe Soap Co (a) VariancecalculationsMix variance Total kg of materials per standard batch = 0·25 + 0·6 + 0·5 = 1·35 kgTherefore standard quantity to produce 136,000 batches = 136,000 x 1·35 kg = 183,600 kgActual total kg of materials used to produce 136,000 batches = 34,080 + 83,232 + 64,200 = 181,512 kgMaterialActual quantity Standard mix kgs 181,512 x 0·25/1·35 = 33,613·33 181,512 x 0·6/1·35 = Actual quantity Actual mix kgs 34,080 83,232 Variance Standard cost per kgVariance kgs (466·67) (2,560) $ 10 4 $(4,666·70) (10,240) Lye Coconut oil Shea butter 80,672 181,512 x 0·5/1·35 = 67,226·67 64,200 3,026·67 3 9,080·01––––––––– –––––––– ––––––––– 181,512 181,512 (5,826·69)A ––––––––– ––––––––– –––––––– Yield variance MaterialStandard quantityStandard mixActual quantity Standard mix kgs 33,613·33 80,672 Variance Standard cost per kgVariance kgs 386·67 928 $ 10 4 $3,866·70 3,712 Lye Coconut oil Shea butter 0·25 x 136,000 = 0·6 x 136,000 = 0·5 x 136,000 = 34,000 81,600 68,000 67,226·67 773·33 3 2,319·99–––––––– 183,600 ––––––––– –––––––––181,512 9,898·69F ––––––––– –––––––– –––––––––(b) (i) A materials mix variance will occur when the actual mix of materials used in production is different from tstandardmix. So, it is inputs which are being considered. Since the total mix variance is adverse for the Safe Soap Co this meansthat the actual mix used in September and October was more expensive than the standard mix. A material yield variance arises because the output which was achieved is different from the output which wo havebeen expected from the inputs. So, whereas the mix variance focuses on inputs, the yield variance focuses on outputs.In both September and October, the yield variance was favourable, meaning that the inputs produced a higher level of output than one would have expected.(ii) Whilst the mix and yield variances provide Safe Soap Co with a certain level of information, they do notnecessarilyexplain any quality issues which arise because of the change in mix. The consequences of the change may wel havean impact on sales volumes. In Safe Soap Co’s case, the sales volume variance is adverse, meaning that sales volumeshave fallen in October. It is not known whether they also fell in September but it would be usual for the eff on sales of the change in mix to be slightly delayed, in this case by one month, given that it is only once the customers startreceiving the slightly altered soap that they may start expressing their dissatisfaction with the product.There may also be other reasons for the adverse sales volume variance but given the customer complaints whic havebeen received, the sales manager’s views should be taken on board.Fundamentals Level – Skills Module, Paper F5Performance Management December 2014 Marking Scheme Section A Marks2 marks per question40––––––Section B1(a)PriceCumulative average time per unit for 8 unitsTotal time for 8 unitsCumulative average time per unit for 7 unitsTotal time for 7 unitsIncremental time for 8th unitCost for 8th unitTotal cost1 0·5 1 0·5 0·5 0·5 0·5Price0·5–––5–––(b)(i)Learning rateCalculating learning rate Saying whether better or worse 2·5 0·5–––3–––(ii)Effect on price2–––Total marks10––––––2(a)(b)Calculation and justification ofbottleneckExplanation of bottleneck31–––4–––TPARThroughput1111 Throughput per bottleneck hourTotal salon costsCost per hourTPAR2–––6–––Total marks10––––––3FabriccalculationFabric reasonWood calculation 0·5 0·5 1Wood reason1Skilled labour calculationSkilled labour reason 1 1Semi-skilled labour calculation Semi-skilled labour reason Factory overheads calculation Factory overheads reason Administration overheads reason Total relevant cost (lowest cost estimate)0·5 1 0·5 1·5 1 0·5–––Total marks10––––––（注：可编辑下载，若有不当之处，请指正，谢谢!）Marks4(a)(b)PerspectivesExplanation for eachperspective1·5–––6–––Goals and measuresEach goal/measure/explanationPresentation and structure21–––9–––Total marks15––––––5(a)(b)VariancecalculationsMix varianceQuantity variance44–––8–––(i)VariancesMarks per variance explained2–––4–––(ii)DiscussionPer valid point1–––3–––Total marks15––––––。
ACCA_F5_201406_Que
Pa per F 5 An.cnALL FIVE questions are compulsory and MUST be attempted 1Duff Co manufactures three products, X, Y and Z. Demand for products X and Y is relatively elastic whilst demand for product Z is relatively inelastic. Each product uses the same materials and the same type of direct labour but in different quantities. For many years, the company has been using full absorption costing and absorbing overheads on the basis of direct labour hours. Selling prices are then determined using cost plus pricing. This is common within this industry, with most competitors applying a standard mark-up.Budgeted production and sales volumes for X, Y and Z for the next year are 20,000 units, 16,000 units and 22,000 units respectively.The budgeted direct costs of the three products are shown below:ProductX Y Z $ per unit$ per unit$ per unitDirect materials252822Direct labour ($12 per hour)303624In the next year, Duff Co also expects to incur indirect production costs of $1,377,400, which are analysed as follows:Cost pools$Cost driversMachine set up costs 280,000Number of batchesMaterial ordering costs 316,000Number of purchase orders Machine running costs 420,000Number of machine hours General facility costs361,400Number of machine hours––––––––––1,377,400––––––––––The following additional data relate to each product:ProductX Y Z Batch size (units)500800400No of purchase orders per batch 454Machine hours per unit1·51·251·4Duff Co wants to boost sales revenue in order to increase profits but its capacity to do this is limited because of its use of cost plus pricing and the application of the standard mark-up. The finance director has suggested using activity based costing (ABC) instead of full absorption costing, since this will alter the cost of the products and may therefore enable a different price to be charged.Required:(a)Calculate the budgeted full production cost per unit of each product using Duff Co’s current method ofabsorption costing. All workings should be to two decimal places.(3 marks)(b)Calculate the budgeted full production cost per unit of each product using activity based costing. All workings should be to two decimal places.(11 marks)(c)Discuss the impact on the selling prices and the sales volumes OF EACH PRODUCT which a change to activity based costing would be expected to bring about.(6 marks)(20 marks)高顿财经A C C A a c c a .g a o d u n .c n2T ablet Co makes two types of tablet computer, the Xeno (X) and the Yong (Y). X currently generates a contribution of $30 per unit and Y generates a contribution of $40 per unit. There are three main stages of production: the build stage, the program stage and the test stage. Each of these stages requires the use of skilled labour which, due to a huge increase in demand for tablet computers over recent months, is now in short supply. The following information is available for the two products:StageXeno (X)Yong (Y)Minutes per unitMinutes per unitBuild ($10 per hour)2420Program ($16 per hour)1614T est ($12 per hour)104T ablet Co is now preparing its detailed production plans for the next quarter. During this period it expects that the skilled labour available will be 30,000 hours (1,800,000 minutes) for the build stage, 28,000 hours (1,680,000 minutes) for the program stage and 12,000 hours (720,000 minutes) for the test stage. The maximum demand for X and Y over the three-month period is expected to be 85,000 units and 66,000 units respectively. Fixed costs are $650,000 per month.Due to rapid technological change, the company holds no inventory of finished goods.Required:(a)On the graph paper provided, use linear programming to calculate the optimum number of each productwhich Tablet Co should make in the next quarter assuming it wishes to maximise contribution. Calculate the total profit for the quarter. (14 marks)(b)Calculate the amount of any slack resources arising as a result of the optimum production plan and explain the implications of these amounts for decision-making within Tablet Co.(6 marks)(20 marks)高顿财经A C C A a c c a .g a o d u n .c n3The Rotech group comprises two companies, W Co and C Co.W Co is a trading company with two divisions: The Design division, which designs wind turbines and supplies the designs to customers under licences and the Gearbox division, which manufactures gearboxes for the car industry.C Co manufactures components for gearboxes. It sells the components globally and also supplies W Co with components for its Gearbox manufacturing division.The financial results for the two companies for the year ended 31 May 2014 are as follows:W CoC Co Design division Gearbox division$’000$’000$’000External sales14,30025,5358,010Sales to Gearbox division7,550–––––––15,560–––––––Cost of sales(4,900)(16,200)*(5,280)Administration costs (3,400)(4,200)(2,600)Distribution costs –(1,260)(670)–––––––––––––––––––––Operating profit 6,0003,8757,010––––––––––––––––––––––––––––––––––––––––––Capital employed23,54032,32082,975* Includes cost of components purchased from C Co.Required:(a)Discuss the performance of C Co and each division of W Co, calculating and using the following threeperformance measures:(i)Return on capital employed (ROCE)(ii)Asset turnover(iii)Operating profit marginNote: There are 4·5 marks available for calculations and 5·5 marks available for discussion.(10 marks)(b) C Co is currently working to full capacity. The Rotech group’s policy is that group companies and divisions mustalways make internal sales first before selling outside the group. Similarly, purchases must be made from within the group wherever possible. However, the group divisions and companies are allowed to negotiate their own transfer prices without interference from Head Office.C Co has always charged the same price to the Gearbox division as it does to its external customers. However,after being offered a 5% lower price for similar components from an external supplier, the manager of the Gearbox division feels strongly that the transfer price is too high and should be reduced. C Co currently satisfies 60% of the external demand for its components. Its variable costs represent 40% of revenue.Required:Advise, using suitable calculations, the total transfer price or prices at which the components should be supplied to the Gearbox division from C Co.(10 marks)(20 marks)高顿财经A C C A a c c a .g a o d u n .c n4Gam Co sells electronic equipment and is about to launch a new product onto the market. It needs to prepare its budget for the coming year and is trying to decide whether to launch the product at a price of $30 or $35 per unit.The following information has been obtained from market research:Price per unit $30Price per unit $35Probability Sales volume Probability Sales volume 0·4120,0000·3108,0000·5110,0000·3100,0000·1140,0000·494,000Notes1Variable production costs would be $12 per unit for production volumes up to and including 100,000 units eachyear. However, if production exceeds 100,000 units each year, the variable production cost per unit would fall to $11 for all units produced.2Advertising costs would be $900,000 per annum at a selling price of $30 and $970,000 per annum at a priceof $35.3Fixed production costs would be $450,000 per annum.Required:(a)Calculate each of the six possible profit outcomes which could arise for Gam Co in the coming year.(8 marks)(b)Calculate the expected value of profit for each of the two price options and recommend, on this basis, whichoption Gam Co would choose.(3 marks)(c)Briefly explain the maximin decision rule and identify which price should be chosen by management if they use this rule to decide which price should be charged.(3 marks)(d)Discuss the factors which may give rise to uncertainty when setting budgets.(6 marks)(20 marks)高顿财经A C C A a c c a .g a o d u n .c n5Valet Co is a car valeting (cleaning) company. It operates in the country of Strappia, which has been badly affected by the global financial crisis. Petrol and food prices have increased substantially in the last year and the average disposable household income has decreased by 30%. Recent studies have shown that the average car owner keeps their car for five years before replacing it, rather than three years as was previously the case. Figures over recent years also show that car sales in Strappia are declining whilst business for car repairs is on the increase.Valet Co offers two types of valet – a full valet and a mini valet. A full valet is an extensive clean of the vehicle, inside and out; a mini valet is a more basic clean of the vehicle. Until recently, four similar businesses operated in Valet Co’s local area, but one of these closed down three months ago after a serious fire on its premises. Valet Co charges customers $50 for each full valet and $30 for each mini valet and this price never changes. Their budget and actual figures for the last year were as follows:Budget ActualNumber of valets:Full valets 3,6004,000Mini valets2,0003,980$$$$Revenue240,000319,400Variable costs:Staff wages(114,000)(122,000)Cleaning materials (6,200)(12,400)Energy costs(6,520)(9,200)––––––––––––––––(126,720)(143,600)––––––––––––––––Contribution 113,280175,800Fixed costs:Rent, rates and depreciation (36,800)(36,800)––––––––––––––––Operating profit76,480139,000––––––––––––––––––––––––––––––––The budgeted contribution to sales ratios for the two types of valet are 44·6% for full valets and 55% for mini valets.Required:(a)Using the data provided for full valets and mini valets, calculate:(i)The total sales mix contribution variance;(4 marks)(ii)The total sales quantity contribution variance.(4 marks)(b)Briefly describe the sales mix contribution variance and the sales quantity contribution variance.(2 marks)(c)Discuss the SALES performance of the business for the period, taking into account your calculations frompart (a) AND the information provided in the scenario.(10 marks)(20 marks)高顿财经A C C A a c c a .g a o d u n .c nFormulae Sheet Learning curve Y = ax bDemand curve Where Y =cumulative average time per unit to produce x unitsa =the time taken for the first unit of output x =the cumulative number of units producedb =the index of learning (log LR/log2)LR =the learning rate as a decimalP =a –bQ b =change in price change in quantity a =price when Q =0MR =a –2bQEnd of Question Paper高顿财经A C C A a c c a .g a o d u n .c n。
2014年12月ACCA F5考试真题_东亚国际
P a p e r F 5Section A – ALL 20 questions are compulsory and MUST be attemptedPlease use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.Each question is worth 2 marks.1Dust Co has two divisions, A and B. Each division is currently considering the following separate projects:Division A Division BCapital required for the project$32·6 million$22·2 millionSales generated by project$14·4 million$8·8 millionOperating profit margin30%24%Cost of capital10%10%Current return on investment of division15%9%If residual income is used as the basis for the investment decision, which Division(s) would choose to invest in the project?A Division A onlyB Division B onlyC Both Division A and Division BD Neither Division A nor Division B2The following costs have arisen in relation to the production of a product:(i)Planning and concept design costs(ii)T esting costs(iii)Production costs(iv)Distribution and customer service costsIn calculating the life cycle costs of a product, which of the above items would be included?A(iii) onlyB(i), (ii) and (iii) onlyC(i), (ii) and (iv) onlyD All of the above3Which of the following describes a ‘basic standard’ within the context of budgeting?A A standard which is kept unchanged over a period of timeB A standard which is based on current price levelsC A standard set at an ideal level, which makes no allowance for normal losses, waste and machine downtimeD A standard which assumes an efficient level of operation, but which includes allowances for factors such asnormal loss, waste and machine downtime4The following statements have been made about planning and control as described in the three tiers of Robert Anthony’s decision-making hierarchy:(1)Strategic planning is concerned with making decisions about the efficient and effective use of existing resources(2)Operational control is about ensuring that specific tasks are carried out efficiently and effectivelyWhich of the above statements is/are true?A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 225P Co makes two products – P1 and P2 – budgeted details of which are as follows:P1P2$$Selling price10·008·00Cost per unit:Direct materials3·504·00Direct labour1·501·00Variable overhead0·600·40Fixed overhead1·201·00––––––––––Profit per unit3·201·60––––––––––Budgeted production and sales for the year ended 30 November 2015 are:Product P110,000 unitsProduct P212,500 unitsThe fixed overhead costs included in P1 relate to apportionment of general overhead costs only. However, P2 also includes specific fixed overheads totalling $2,500.If only product P1 were to be made, how many units (to the nearest unit) would need to be sold in order to achieve a profit of $60,000 each year?A25,625 unitsB19,205 unitsC18,636 unitsD26,406 units6 A company has the following production planned for the next four weeks. The figures reflect the full capacity level ofoperations. Planned output is equal to the maximum demand per product.Product A B C D$ per unit$ per unit$ per unit$ per unit Selling price 160214100140 Raw material cost24562240 Direct labour cost 66883322 Variable overhead cost24182418 Fixed overhead cost16108 12––––––––––––––––Profit 30421348––––––––––––––––Planned output300125240400 Direct labour hours per unit6832 The direct labour force is threatening to go on strike for two weeks out of the coming four. This means that only 2,160 hours will be available for production rather than the usual 4,320 hours.If the strike goes ahead, which product or products should be produced if profits are to be maximised?A D and AB B and DC D onlyD B and C3[P.T.O.7The following table shows the number of clients who attended a particular accountancy practice over the last four weeks and the total costs incurred during each of the weeks:Week Number of clients Total cost$140036,880244039,840342036,800446040,000Applying the high low method to the above information, which of the following could be used to forecast total cost ($) from the number of clients expected to attend (where x = the expected number of clients)?A7,280 + 74xB16,080 + 52xC3,200 + 80xD40,000/x8Oxco has two divisions, A and B. Division A makes a component for air conditioning units which it can only sell to Division B. It has no other outlet for sales.Current information relating to Division A is as follows:Marginal cost per unit$100T ransfer price of the component$165T otal production and sales of the component each year2,200unitsSpecific fixed costs of Division A per year$10,000Cold Co has offered to sell the component to Division B for $140 per unit. If Division B accepts this offer, Division A will be shut.If Division B accepts Cold Co’s offer, what will be the impact on profits per year for the group as a whole?A Increase of $65,000B Decrease of $78,000C Decrease of $88,000D Increase of $55,0009The following statements have been made in relation to activity-based costing:(1) A cost driver is a factor which causes a change in the cost of an activity(2)T raditional absorption costing tends to under-estimate overhead costs for high volume productsWhich of the above statements is/are true?A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 2410 A linear programming model has been formulated for two products, X and Y. The objective function is depicted by theformula C = 5X + 6Y, where C = contribution, X = the number of product X to be produced and Y = the number of product Y to be produced.Each unit of X uses 2 kg of material Z and each unit of Y uses 3 kg of material Z. The standard cost of material Z is $2 per kg.The shadow price for material Z has been worked out and found to be $2·80 per kg.If an extra 20 kg of material Z becomes available at $2 per kg, what will the maximum increase in contribution be?A Increase of $96B Increase of $56C Increase of $16D No change11The following statements have been made about both standard costing and total quality management (TQM):(1)They focus on assigning responsibility solely to senior managers(2)They work well in rapidly changing environmentsWhich of the above statements is/are true?A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 212The following statements have been made about environmental cost accounting:(1)The majority of environmental costs are already captured within a typical organisation’s accounting system. Thedifficulty lies in identifying them(2) Input/output analysis divides material flows within an organisation into three categories: material flows; systemflows; and delivery and disposal flowsWhich of the above statements is/are true?A 1 onlyB 2 onlyC Neither 1 nor 2D Both 1 and 25[P.T.O.13Def Co provides accounting services to government departments. On average, each staff member works six chargeable hours per day, with the rest of their working day being spent on non-chargeable administrative work. One of the company’s main objectives is to produce a high level of quality and customer satisfaction.Def Co has set its targets for the next year as follows:(1)Cutting departmental expenditure by 5%(2)Increasing the number of chargeable hours handled by advisers to 6·2 per day(3)Obtaining a score of 4·7 or above on customer satisfaction surveysWhich of the above targets assesses economy, efficiency and effectiveness at Def Co?Economy Efficiency EffectivenessA132B213C321D12314Which of the following is an advantage of non-participative budgeting as compared to participative budgeting?A It increases motivationB It is less time consumingC It increases acceptanceD The budgets produced are more attainable15The following are all steps in the implementation of the target costing process for a product:(1)Calculate the target cost(2)Calculate the estimated current cost based on the existing product specification(3)Set the required profit(4)Set the selling price(5)Calculate the target cost gapWhich of the following represents the correct sequence if target costing were to be used?A(1), (2), (3), (4), (5)B(2), (3), (4), (1), (5)C(4), (3), (1), (2), (5)D(4), (5), (3), (1), (2)16What is the name given to a budget which has been prepared by building on a previous period’s budgeted or actual figures?A Incremental budgetB Flexible budgetC Zero based budgetD Functional budget617T ree Co is considering employing a sales manager. Market research has shown that a good sales manager can increase profit by 30%, an average one by 20% and a poor one by 10%. Experience has shown that the company has attracted a good sales manager 35% of the time, an average one 45% of the time and a poor one 20% of the time.The company’s normal profits are $180,000 per annum and the sales manager’s salary would be $40,000 per annum.Based on the expected value criterion, which of the following represents the correct advice which Tree Co should be given?A Do not employ a sales manager as profits would be expected to fall by $1,300B Employ a sales manager as profits will increase by $38,700C Employ a sales manager as profits are expected to increase by $100D Do not employ a sales manager as profits are expected to fall by $39,90018 A company manufactures two products, C and D, for which the following information is available:Product C Product D TotalBudgeted production (units)1,0004,0005,000Labour hours per unit/in total81048,000Number of production runs required131528Number of inspections during production538T otal production set up costs$140,000T otal inspection costs$80,000Other overhead costs$96,000Other overhead costs are absorbed on the basis of labour hours per unit.Using activity-based costing, what is the budgeted overhead cost per unit of product D?A$43·84B$46·25C$131·00D$140·6419X Co uses rolling budgeting, updating its budgets on a quarterly basis. After carrying out the last quarter’s update to the cash budget, it projected a forecast cash deficit of $400,000 at the end of the year. Consequently, the planned purchase of new capital equipment has been postponed.Which of the following types of control is the sales manager’s actions an example of?A Feedforward controlB Negative feedback controlC Positive feedback controlD Double loop feedback control7[P.T.O.20The following circumstances may arise in relation to the launch of a new product:(i)Demand is relatively inelastic(ii)There are significant economies of scale(iii)The firm wishes to discourage new entrants to the market(iv)The product life cycle is particularly shortWhich of the above circumstances favour a penetration pricing policy?A(ii) and (iii) onlyB(ii) and (iv)C(i), (ii) and (iii)D(ii), (iii) and (iv) only(40 marks)8Section B –ALL FIVE questions are compulsory and MUST be attempted1Chair Co has developed a new type of luxury car seat. The estimated labour time for the first unit is 12 hours but a learning curve of 75% is expected to apply for the first eight units produced. The cost of labour is $15 per hour. The cost of materials and other variable overheads is expected to total $230 per unit.Chair Co plans on pricing the seat by adding a 50% mark-up to the total variable cost per seat, with the labour cost being based on the incremental time taken to produce the 8th unit.Required:(a)Calculate the price which Chair Co expects to charge for the new seat.Note: The learning index for a 75% learning curve is –0·415.(5 marks)(b)The first phase of production has now been completed for the new car seat. The first unit actually took12·5 hours to make and the total time for the first eight units was 34·3 hours, at which point the learning effect came to an end. Chair Co are planning on adjusting the price to reflect the actual time it took to complete the 8th unit.Required:(i)Calculate the actual rate of learning and state whether this means that the labour force actually learntmore quickly or less quickly than expected. (3 marks) (ii)Briefly explain whether the adjusted price charged by Chair Co will be higher or lower than the price you calculated in part (a) above. You are NOT required to calculate the adjusted price.(2 marks)(10 marks)9[P.T.O.2Glam Co is a hairdressing salon which provides both ‘cuts’ and ‘treatments’ to clients. All cuts and treatments at the salon are carried out by one of the salon’s three senior stylists. The salon also has two salon assistants and two junior stylists.Every customer attending the salon is first seen by a salon assistant, who washes their hair; next, by a senior stylist, who cuts or treats the hair depending on which service the customer wants; then finally, a junior stylist who dries their hair. The average length of time spent with each member of staff is as follows:Cut TreatmentHours HoursAssistant0·10·3Senior stylist11·5Junior stylist0·50·5The salon is open for eight hours each day for six days per week. It is only closed for two weeks each year. Staff salaries are $40,000 each year for senior stylists, $28,000 each year for junior stylists and $12,000 each year for the assistants. The cost of cleaning products applied when washing the hair is $0·60 per client. The cost of all additional products applied during a ‘treatment’ is $7·40 per client. Other salon costs (excluding labour and raw materials) amount to $106,400 each year.Glam Co charges $60 for each cut and $110 for each treatment.The senior stylists’ time has been correctly identified as the bottleneck activity.Required:(a) Briefly explain why the senior stylists’ time has been described as the ‘bottleneck activity’, supporting youranswer with calculations.(4 marks)(b)Calculate the throughput accounting ratio (TPAR) for ‘cuts’ and the TPAR for ‘treatments’ assuming thebottleneck activity is fully utilised.(6 marks)(10 marks)103The Hi Life Co (HL Co) makes sofas. It has recently received a request from a customer to provide a one-off order of sofas, in excess of normal budgeted production. The order would need to be completed within two weeks. The following cost estimate has already been prepared:Direct materials:Note$Fabric200 m2at $17 per m213,400Wood50 m at $8·20 per m22410Direct labour:Skilled200 hours at $16 per hour33,200Semi-skilled300 hours at $12 per hour43,600Factory overheads500 hours at $3 per hour51,500–––––––T otal production cost12,110Administration overheads at 10% of total production cost61,211–––––––T otal cost13,321–––––––Notes1The fabric is regularly used by HL Co. There are currently 300 m2in inventory, which cost $17 per m2. The current purchase price of the fabric is $17·50 per m2.2This type of wood is regularly used by HL Co and usually costs $8·20 per m2. However, the company’s current supplier’s earliest delivery time for the wood is in three weeks’ time. An alternative supplier could deliver immediately but they would charge $8·50 per m2. HL Co already has 500 m2in inventory but 480 m2of this is needed to complete other existing orders in the next two weeks. The remaining 20 m2is not going to be needed until four weeks’ time.3The skilled labour force is employed under permanent contracts of employment under which they must be paid for 40 hours’ per week’s labour, even if their time is idle due to absence of orders. Their rate of pay is $16 per hour, although any overtime is paid at time and a half. In the next two weeks, there is spare capacity of 150 labour hours.4There is no spare capacity for semi-skilled workers. They are currently paid $12 per hour or time and a half for overtime. However, a local agency can provide additional semi-skilled workers for $14 per hour.5The $3 absorption rate is HL Co’s standard factory overhead absorption rate; $1·50 per hour reflects the cost of the factory supervisor’s salary and the other $1·50 per hour reflects general factory costs. The supervisor is paid an annual salary and is also paid $15 per hour for any overtime he works. He will need to work 20 hours’overtime if this order is accepted.6This is an apportionment of the general administration overheads incurred by HL Co.Required:Prepare, on a relevant cost basis, the lowest cost estimate which could be used as the basis for the quotation.Explain briefly your reasons for including or excluding each of the costs in your estimate.(10 marks)4Jamair was founded in September 2007 and is one of a growing number of low-cost airlines in the country of Shania.Jamair’s strategy is to operate as a low-cost, high efficiency airline, and it does this by:–Operating mostly in secondary cities to reduce landing costs.–Using only one type of aircraft in order to reduce maintenance and operational costs. These planes are leased rather than bought outright.–Having only one category of seat class.–Having no pre-allocated seats or in-flight entertainment.–Focusing on e-commerce with customers both booking tickets and checking in for flights online.The airline was given an ‘on time arrival’ ranking of seventh best by the country’s aviation authority, who rank all 50 of the country’s airlines based on the number of flights which arrive on time at their destinations. 48 Jamair flights were cancelled in 2013 compared to 35 in 2012. This increase was due to an increase in the staff absentee rate at Jamair from 3 days per staff member per year to 4·5 days.The average ‘ground turnaround time’ for airlines in Shania is 50 minutes, meaning that, on average, planes are on the ground for cleaning, refuelling, etc for 50 minutes before departing again. Customer satisfaction surveys have shown that 85% of customers are happy with the standard of cleanliness on Jamair’s planes.The number of passengers carried by the airline has grown from 300,000 passengers on a total of 3,428 flights in 2007 to 920,000 passengers on 7,650 flights in 2013. The overall growth of the airline has been helped by the limited route licensing policy of the Shanian government, which has given Jamair almost monopoly status on some of its routes. However, the government is now set to change this policy with almost immediate effect, and it has become more important than ever to monitor performance effectively.Required:(a)Describe each of the four perspectives of the balanced scorecard. (6 marks)(b)For each perspective of the balanced scorecard, identify one goal together with a corresponding performancemeasure which could be used by Jamair to measure the company’s performance. The goals and measures should be specifically relevant to Jamair. For each pair of goals and measures, explain why you have chosen them.(9 marks)(15 marks)5The Safe Soap Co makes environmentally-friendly soap using three basic ingredients. The standard cost card for one batch of soap for the month of September was as follows:Material Kilograms Price per kilogram ($)Lye0·25 10Coconut oil0·64Shea butter0·53The budget for production and sales in September was 120,000 batches. Actual production and sales were 136,000 batches. The actual ingredients used were as follows:Material KilogramsLye34,080Coconut oil83,232Shea butter64,200Required:(a)Calculate the total material mix variance and the total material yield variance for September.(8 marks)(b)In October the materials mix and yield variances were as follows:Mix: $6,000 adverseYield: $10,000 favourableThe production manager is pleased with the results overall, stating:‘At the beginning of September I made some changes to the mix of ingredients used for the soaps. As I expected, the mix variance is adverse in both months because we haven’t yet updated our standard cost card but, in both months, the favourable yield variance more than makes up for this. Overall, I think we can be satisfied that the changes made to the product mix are producing good results and now we are able to produce more batches and meet the growing demand for our product.’The sales manager, however, holds a different view and says:‘I’m not happy with this change in the ingredients mix. I’ve had to explain to the board why the sales volume variance for October was $22,000 adverse. I’ve tried to explain that the quality of the soap has declined slightly and some of my customers have realised this and simply aren’t happy but no-one seems to be listening. Some customers are even demanding that the price of the soap be reduced and threatening to go elsewhere if the problem isn’t sorted out.’Required:(i)Briefly explain what the adverse materials mix and favourable materials yield variances indicate aboutproduction at Safe Soap Co in October.Note: You are NOT required to discuss revision of standards or operational and planning variances.(4 marks)(ii)Discuss whether the sales manager could be justified in claiming that the change in the materials mix has caused an adverse sales volume variance in October.(3 marks)(15 marks)Formulae Sheet Learning curve Y = ax bDemand curve Where Y =cumulative average time per unit to produce x unitsa =the time taken for the first unit of output x =the cumulative number of units producedb =the index of learning (log LR/log2)LR =the learning rate as a decimalP =a –bQ b =change in price change in quantitya =price when Q =0MR =a –2bQEnd of Question Paper。
ACCA 历年真题f5_2013_jun_q
Option 2 Expand the exercise studio. The capital cost of this would be $360,000.The expected effect on membership numbers for the next three years is as follows:
All contracts to customers of Squarize are for a minimum three-month period. The pay-tv box is sold to the customer at the beginning of the contract; however, the broadband and telephone equipment is only rented to them.
1. In the economy as a whole, discretionary spending had been severely hit by rising unemployment and inflation. In a bid to save cash, many pay-tv customers were cancelling their contracts after the minimum three-month period as they were then able to still keep the pay-tv box. The box comes with a number of free channels, which the customer can still continue to receive free of charge, even after the cancellation of their contract.
2014年6月ACCA F2考试真题
Fundamentals Level – Knowledge Module Management AccountingSpecimen Exam applicable from June 2014Time allowed: 2 hoursThis paper is divided into two sections:Section A – ALL 35 questions are compulsory and MUSTbe attemptedSection B – ALL THREE questions are compulsory and MUSTbe attemptedFormulae Sheet, Present Value and Annuity Tables are onpages 16, 17 and 18.Do NOT open this paper until instructed by the supervisor.This question paper must not be removed from the examination hall. The Association of Chartered Certified AccountantsSection A – ALL 35 questions are compulsory and MUST be attemptedPlease use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.Each question is worth 2 marks.1 A manufacturing company benchmarks the performance of its accounts receivable department with that of a leadingcredit card company.What type of benchmarking is the company using?A B C D Internal benchmarking Competitive benchmarking Functional benchmarking Strategic benchmarking2 3 Which of the following BEST describes target costing?ABCDSetting a cost by subtracting a desired profit margin from a competitive market price Setting a price by adding a desired profit margin to a production costSetting a cost for the use in the calculation of variancesSetting a selling price for the company to aim for in the long runInformation relating to two processes (F and G) was as follows:Process Normal loss as% of inputInput(litres)Output(litres)FG8565,00037,50058,90035,700For each process, was there an abnormal loss or an abnormal gain?Process F Process GABCDAbnormal gainAbnormal gainAbnormal lossAbnormal lossAbnormal gainAbnormal lossAbnormal gainAbnormal loss4 The following budgeted information relates to a manufacturing company for next period:Units $Production Sales 14,00012,000Fixed production costsFixed selling costs63,00012,000The normal level of activity is 14,000 units per period.Using absorption costing the profit for next period has been calculated as $36,000. What would be the profit for next period using marginal costing?A B C D $25,000$27,000$45,000$47,00025 The Eastland Postal Service is government owned. The government requires it to provide a parcel delivery service toevery home and business in Eastland at a low price which is set by the government. Express Couriers Co is a privately owned parcel delivery company that also operates in Eastland. It is not subject to government regulation and most of its deliveries are to large businesses located in Eastland’s capital city. You have been asked to assess the relative efficiency of the management of the two organisations.Which of the following factors should NOT be allowed for when comparing the ROCE of the two organisations to assess the efficiency of their management?A B C D Differences in prices charged Differences in objectives pursued Differences in workforce motivation Differences in geographic areas served6 Under which sampling method does every member of the target population has an equal chance of being in thesample?A B C D Stratified sampling Random sampling Systematic sampling Cluster sampling7 A Company manufactures and sells one product which requires 8 kg of raw material in its manufacture. The budgeteddata relating to the next period are as follows:UnitsSalesOpening inventory of finished goods Closing inventory of finished goods 19,000 4,000 3,000KgOpening inventory of raw materials Closing inventory of raw materials 50,000 53,000What is the budgeted raw material purchases for next period (in kg)?A B C D 141,000147,000157,000163,0003 [P.T.O.8 Up to a given level of activity in each period the purchase price per unit of a raw material is constant. After that pointa lower price per unit applies both to further units purchased and also retrospectively to all units already purchased.Which of the following graphs depicts the total cost of the raw materials for a period?$ $A B0 0$ $C D0 0A B C D Graph A Graph B Graph C Graph D9 Which of the following are benefits of budgeting?1 2 3 4 It helps coordinate the activities of different departments It fulfils legal reporting obligationsIt establishes a system of controlIt is a starting point for strategic planningA B C D 1 and 4 only1 and 3 only2 and3 only 2 and4 only10 The following statements relate to the participation of junior management in setting budgets:1.2.3. It speeds up the setting of budgetsIt increases the motivation of junior managers It reduces the level of budget paddingWhich statements are true?A B C D 1 only2 only2 and3 only1, 2 and 3411 A company has a capital employed of $200,000. It has a cost of capital of 12% per year. Its residual income is$36,000.What is the company’s return on investment?A B C D 30% 12% 18% 22%12 A company has calculated a $10,000 adverse direct material variance by subtracting its flexed budget direct materialcost from its actual direct material cost for the period.Which of the following could have caused the variance?(1) An increase in direct material prices(2) An increase in raw material usage per unit(3) Units produced being greater than budgeted(4) Units sold being greater than budgetedA B C D 2 and 3 only3 and4 only 1 and 2 only 1 and 4 only13 A company has recorded the following variances for a period:Sales volume variance Sales price variance Total cost variance $10,000 adverse $5,000 favourable $12,000 adverseStandard profit on actual sales for the period was $120,000. What was the fixed budget profit for the period?A B C D $137,000 $103,000 $110,000 $130,00014 Which of the following are suitable measures of performance at the strategic level?(1) Return on investment(2) Market share(3) Number of customer complaintsA B C D 1 and 22 only2 and 31 and 35 [P.T.O.15 Which of the following are feasible values for the correlation coefficient?1 2 3 4 +1·40 +1·04 0–0·94A B C D 1 and 2 only3 and4 only 1, 2 and 4 only 1, 2, 3 and 416 A company’s operating costs are 60% variable and 40% fixed.Which of the following variances’ values would change if the company switched from standard marginal costing to standard absorption costing?A B C D Direct material efficiency variance Variable overhead efficiency variance Sales volume varianceFixed overhead expenditure variance17 ABC Co has a manufacturing capacity of 10,000 units. The flexed production cost budget of the company is asfollows:Capacity 60% 100%Total production costs $11,280 $15,120What is the budgeted total production cost if it operates at 85% capacity?A B C D $13,680 $12,852 $14,025 $12,34018 Using an interest rate of 10% per year the net present value (NPV) of a project has been correctly calculated as $50.If the interest rate is increased by 1% the NPV of the project falls by $20.What is the internal rate of return (IRR) of the project?A B C D 7·5%11·7%12·5%20·0%619 A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocatedand apportioned overhead for each is as follows:P Q X Y $95,000 $82,000 $46,000 $30,000It has been estimated that each service cost centre does work for other cost centres in the following proportions: P 50 30Q 50 60X – 10Y – –Percentage of service cost centre X to Percentage of service cost centre Y toThe reapportionment of service cost centre costs to other cost centres fully reflects the above proportions. After the reapportionment of service cost centre costs has been carried out, what is the total overhead for production cost centre P? A B C D$124,500 $126,100 $127,000 $128,50020 A company always determines its order quantity for a raw material by using the Economic Order Quantity (EOQ)model.What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material? EOQ Annual holding cost Lower Higher Higher LowerA B C D Higher Higher Lower Lower21 A company which operates a process costing system had work-in-progress at the start of last month of 300 units(valued at $1,710) which were 60% complete in respect of all costs. Last month a total of 2,000 units werecompleted and transferred to the finished goods warehouse. The cost per equivalent unit for costs arising last month was $10. The company uses the FIFO method of cost allocation.What was the total value of the 2,000 units transferred to the finished goods warehouse last month? A B C D$19,910 $20,000 $20,510 $21,71022 A manufacturing company operates a standard absorption costing system. Last month 25,000 production hours werebudgeted and the budgeted fixed production cost was $125,000. Last month the actual hours worked were 24,000 and standard hours for actual production were 27,000.What was the fixed production overhead capacity variance for last month? A B C D$5,000 Adverse $5,000 Favourable $10,000 Adverse $10,000 Favourable7 [P .T.O.23 The following statements have been made about value analysis.(1) It seeks the lowest cost method of achieving a desired function(2) It always results in inferior products(3) It ignores esteem valueWhich is/are true ?A B C D 1 only2 only3 only1 and 3 only24 Under which of the following labour remuneration methods will direct labour cost always be a variable cost?A B C D Day ratePiece rate Differential piece rate Group bonus scheme25 A company manufactures and sells a single product. In two consecutive months the following levels of production andsales (in units) occurred:Month 1 3,800 Month 2 4,400SalesProduction 3,900 4,200The opening inventory for Month 1 was 400 units. Profits or losses have been calculated for each month using both absorption and marginal costing principles.Which of the following combination of profits and losses for the two months is consistent with the above data?Absorption costing profit/(loss) Marginal costing profit/(loss)Month 1$ Month 2$Month 1$Month 2$A B C D200(400)2004,4004,4003,2003,200(400)200(400)2003,2003,2004,4004,400 (400)26 The following statements relate to the advantages that linear regression analysis has over the high low method in theanalysis of cost behaviour:1.2.3. the reliability of the analysis can be statistically tested it takes into account all of the datait assumes linear cost behaviourWhich statements are true?A B C D 1 only1 and2 only2 and3 only1, 2 and 3827 A company operates a process in which no losses are incurred. The process account for last month, when there wasno opening work-in-progress, was as follows:Process Account$ $ Costs arising 624,000 Finished output (10,000 units) 480,000Closing work-in-progress (4,000 units) 144,000––––––––––––––––624,000 624,000––––––––––––––––The closing work in progress was complete to the same degree for all elements of cost.What was the percentage degree of completion of the closing work-in-progress?A B C D 12% 30% 40% 75%28 Which of the following would not be expected to appear in an organisation’s mission statement?A B C D The organisation’s values and beliefsThe products or services offered by the organisation Quantified short term targets the organisation seeks to achieve The organisation’s major stakeholders29 An organisation operates a piecework system of remuneration, but also guarantees its employees 80% of a time-basedrate of pay which is based on $20 per hour for an eight hour working day. Three minutes is the standard time allowed per unit of output. Piecework is paid at the rate of $18 per standard hour.If an employee produces 200 units in eight hours on a particular day, what is the employee’s gr oss pay for that day?A B C D $128 $144 $160 $18030 A company uses an overhead absorption rate of $3·50 per machine hour, based on 32,000 budgeted machine hoursfor the period. During the same period the actual total overhead expenditure amounted to $108,875 and 30,000 machine hours were recorded on actual production.By how much was the total overhead under or over absorbed for the period?A B C D Under absorbed by $3,875Under absorbed by $7,000Over absorbed by $3,875Over absorbed by $7,0009 [P.T.O.31 Which of the following statements relating to management information are true?1.2.3.4. It is produced for parties external to the organisationThere is usually a legal requirement for the information to be produced No strict rules govern the way in which the information is presentedIt may be presented in monetary or non monetary termsA B C D 1 and 2 3 and 41 and 32 and 432 A company’s sales in the last year in its three different markets were as follows$Market 1 Market 2 Market 3 100,000 150,000 50,000 ––––––––Total 300,000––––––––In a pie chart representing the proportion of sales made by each region what would be the angle of the section representing Market 3 (to the nearest whole degree)?A B C D 17 degrees 50 degrees 61 degrees 120 degrees33 Which of the following BEST describes a flexible budget?A B C D A budget which shows variable production costs onlyA monthly budget which is changed to reflect the number of days in the monthA budget which shows sales revenue and costs at different levels of activityA budget that is updated halfway through the year to incorporate the actual results for the first half of the year34 The purchase price of an item of inventory is $25 per unit. In each three month period the usage of the item is20,000 units. The annual holding costs associated with one unit equate to 6% of its purchase price. The cost of placing an order for the item is $20.What is the Economic Order Quantity (EOQ) for the inventory item to the nearest whole unit?A B C D 7308941,4611,633.1035 Two products G and H are created from a joint process. G can be sold immediately after split-off. H requires furtherprocessing into product HH before it is in a saleable condition. There are no opening inventories and no work in progress of products G, H or HH. The following data are available for last period:$Total joint production costsFurther processing costs of product H 350,000 66,000Product Productionunits420,000330,000Closing inventory 20,000 30,000GHHUsing the physical unit method for apportioning joint production costs, what was the cost value of the closing inventory of product HH for last period?A B C D $16,640$18,625$20,000$21,600(70 marks)11 [P.T.O.Section B – ALL THREE questions are compulsory and MUST be attempted1 Cab Co owns and runs 350 taxis and had sales of $10 million in the last year. Cab Co is considering introducing anew computerised taxi tracking system.The expected costs and benefits of the new computerised tracking system are as follows:(i) The system would cost $2,100,000 to implement.(ii) (iii) Depreciation would be provided at $420,000 per annum.$75,000 has already been spent on staff training in order to evaluate the potential of the new system. Further training costs of $425,000 would be required in the first year if the new system is implemented.(iv) Sales are expected to rise to $11 million in Year 1 if the new system is implemented, thereafter increasing by 5% per annum. If the new system is not implemented, sales would be expected to increase by $200,000 per annum.(v) Despite increased sales, savings in vehicle running costs are expected as a result of the new system. These are estimated at 1% of total sales.(vi) Six new members of staff would be recruited to manage the new system at a total cost of $120,000 per annum. (vii) Cab Co would have to take out a maintenance contract for the new system at a cost of $75,000 per annum for five years.(viii) Interest on money borrowed to finance the project would cost $150,000 per annum.(ix) Cab Co’s cost of capital is 10% per annum.Required:(a) State whether each of the following items are relevant or irrelevant cashflows for a net present value (NPV)evaluation of whether to introduce the computerised tracking system.(i) Computerised tracking system investment of $2,100,000;(ii) Depreciation of $420,000 in each of the five years;(iii) Staff training costs of $425,000;(iv) New staff total salary of $120,000 per annum;(v) Staff training costs of $75,000;(vi) Interest cost of $150,000 per annum.Note: The following mark allocation is provided as guidance for this requirement:(i) 0·5 marks(ii) 1 mark(iii) 0·5 marks(iv) 1 mark(v) 1 mark(vi) 1 mark(5 marks)(b) Calculate the following values if the computerised tracking system is implemented.(i) Incremental sales in Year 1;(ii) Savings in vehicle running costs in Year 1;(iii) Present value of the maintenance costs over the life of the contract.Note: The following mark allocation is provided as guidance for this requirement:(i) 1 mark(ii) 0·5 marks(iii) 1·5 marks(3 marks)12(c) Cab Co wishes to maximise the wealth of its shareholders. It has correctly calculated the following measures forthe proposed computerised tracking system project:–––The internal rate of return (IRR) is 14%,The return on average capital employed (ROCE) is 20% and The payback period is four years.Required:Which of the following is true?A B C D The project is worthwhile because the IRR is a positive valueThe project is worthwhile because the IRR is greater than the cost of capitalThe project is not worthwhile because the IRR is less than the ROCEThe project is not worthwhile because the payback is less than five years (2 marks)(10 marks)13 [P.T.O.2 Castilda Co manufactures toy robots. The company operates a standard marginal costing system and values inventoryat standard cost.The following is an extract of a partly completed spreadsheet for calculating variances in month 1.Required:(a) Which formula will correctly calculate the direct labour efficiency variance in cell B18?A B C D = (C9*C4)- B13=B13-(C9*C4)= (C9*C4)- (150,000*8)=(150,000-(C9*6))*8 (2 marks)(5 marks)(b) Calculate the following for month 1:Sales volume variance and state whether it is favourable or adverse;(i)(ii) Sales price variance and state whether it is favourable or adverse.Note: The total marks will be split equally between each part.(c) Castilda’s management accountant thinks that the direct labour rate and efficiency variances for Month 1 couldbe interrelated.Required:Briefly explain how the two direct labour variances could be interrelated. (3 marks)(10 marks)143 Nicholson Co sells mobile telephones. It supplies its customers with telephones and wireless telephone connections.Customers pay an annual fee plus a monthly charge based on calls made.The company has recently employed a consultant to install a balanced scorecard system of performance measurement and to benchmark the results against those of Nicholson Co’s competitors. Unfortunately the consultant was called away before the work was finished. You have been asked to complete the work. The following data is available.Nicholson CoOperating data for the year ended 30 November 2013Sales revenueSales attributable to new products Average capital employed $480 million $8 million $192 million $48 million 1,960,00010,000Profit before interest and taxAverage numbers of customersAverage number of telephones returned for repair each dayNumber of bill queries 12,000Number of customer complaintsNumber of customers lostAverage number of telephones unrepaired at the end of each day21,600 117,600804Required:(a) Calculate the following ratios and other statistics for Nicholson Co for the year ended 30 November 2013.Return on capital employed;(i)(ii) Return on sales (net profit percentage);(iii) Asset turnover;(iv) Average wait for telephone repair (in days);(v) Percentage of customers lost per annum;(vi) Percentage of sales attributable to new products.Note: The following mark allocation is provided as guidance for this requirement:(i) 1·5 marks(ii) 1·5 marks(iii) 1·5 marks(iv) 1·5 marks(v) 1 mark(vi) 1 mark(8 marks)(c) A balanced scorecard measures performance from four perspectives: customer satisfaction, growth, financialsuccess and process efficiency.Required:Briefly explain any ONE of the four perspectives above. (2 mark)(10 marks)15 [P.T.O.Formulae Sheet Regression analysisy = a + bxEconomic order quantity2C 0D C hEconomic batch quantity2C 0D C h (1–DR)16Present Value TablePresent value of 1 i.e. (1 +r)–nWhere r = discount raten = number of periods until paymentDiscount rate (r)Periods(n) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%12345 0·9900·9800·9710·9610·9510·9800·9610·9420·9240·9060·9710·9430·9150·8880·8630·9620·9250·8890·8550·8220·9520·9070·8640·8230·7840·9430·8900·8400·7920·7470·9350·8730·8160·7630·7130·9260·8570·7940·7350·6810·9170·8420·7720·7080·6500·9090·8260·7510·6830·62112345678910 0·9420·9330·9230·9410·9050·8880·8710·8530·8370·8200·8370·8130·7890·7660·7440·7900·7600·7310·7030·6760·7460·7110·6770·6450·6140·7050·6650·6270·5920·5580·6660·6230·5820·5440·5080·6300·5830·5400·5000·4630·5960·5470·5020·4600·4220·5640·5130·4670·4240·3866789101112131415 0·8960·8870·8790·8700·8610·8040·7880·7730·7580·7430·7220·7010·6810·6610·6420·6500·6250·6010·5770·5550·5850·5570·5300·5050·4810·5270·4970·4690·4420·4170·4750·4440·4150·3880·3620·4290·3970·3680·3400·3150·3880·3560·3260·2990·2750·3050·3190·2900·2630·2391112131415(n) 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%12345 0·9010·8120·7310·6590·5930·8930·7970·7120·6360·5670·8850·7830·6930·6130·5430·8770·7690·6750·5920·5190·8700·7560·6580·5720·4970·8620·7430·6410·5520·4760·8550·7310·6240·5340·4560·8470·7180·6090·5160·4370·8400·7060·5930·4990·4190·8330·6940·5790·4820·40212345678910 0·5350·4820·4340·3910·3520·5070·4520·4040·3610·3220·4800·4250·3760·3330·2950·4560·4000·3510·3080·2700·4320·3760·3270·2840·2470·4100·3540·3050·2630·2270·3900·3330·2850·2430·2080·3700·3140·2660·2250·1910·3520·2960·2490·2090·1760·3350·2790·2330·1940·1626789101112131415 0·3170·2860·2580·2320·2090·2870·2570·2290·2050·1830·2610·2310·2040·1810·1600·2370·2080·1820·1600·1400·2150·1870·1630·1410·1230·1950·1680·1450·1250·1080·1780·1520·1300·1110·0950·1620·1370·1160·0990·0840·1480·1240·1040·0880·0740·1350·1120·0930·0780·065111213141517 [P.T.O.Annuity Table1 – (1 + r)–nPresent value of an annuity of 1 i.e. ————––rWhere r = discount raten = number of periodsDiscount rate (r)Periods(n) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%12345 0·9901·9702·9413·9024·8530·9801·9422·8843·8084·7130·9711·9132·8293·7174·5800·9621·8862·7753·6304·4520·9521·8592·7233·5464·3290·9431·8332·6733·4654·2120·9351·8082·6243·3874·1000·9261·7832·5773·3123·9930·9171·7592·5313·2403·8900·9091·7362·4873·1703·79112345678910 5·7956·7287·6528·5669·4715·6016·4727·3258·1628·9835·4176·2307·0207·7868·5305·2426·0026·7337·4358·1115·0765·7866·4637·1087·7224·9175·5826·2106·8027·3604·7675·3895·9716·5157·0244·6235·2065·7476·2476·7104·4865·0335·5355·9956·4184·3554·8685·3355·7596·1456789101112131415 10·3711·2612·1313·0013·879·78710·5811·3512·1112·859·2539·95410·6311·3011·948·7609·3859·98610·5611·128·3068·8639·3949·89910·387·8878·3848·8539·2959·7127·4997·9438·3588·7459·1087·1397·5367·9048·2448·5596·8057·1617·4877·7868·0616·4956·8147·1037·3677·6061112131415(n) 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%12345 0·9011·7132·4443·1023·6960·8931·6902·4023·0373·6050·8851·6682·3612·9743·5170·8771·6472·3222·9143·4330·8701·6262·2832·8553·3520·8621·6052·2462·7983·2740·8551·5852·2102·7433·1990·8471·5662·1742·6903·1270·8401·5472·1402·6393·0580·8331·5282·1062·5892·99112345678910 4·2314·7125·1465·5375·8894·1114·5644·9685·3285·6503·9984·4234·7995·1325·4263·8894·2884·6394·9465·2163·7844·1604·4874·7725·0193·6854·0394·3444·6074·8333·5893·9224·2074·4514·6593·4983·8124·0784·3034·4943·4103·7063·9544·1634·3393·3263·6053·8374·0314·1926789101112131415 6·2076·4926·7506·9827·1915·9386·1946·4246·6286·8115·6875·9186·1226·3026·4625·4535·6605·8426·0026·1425·2345·4215·5835·7245·8475·0295·1975·3425·4685·5754·8364·9885·1185·2295·3244·6564·7934·9105·0085·0924·4864·6114·7154·8024·8764·3274·4394·5334·6114·6751112131415End of Question Paper18。
2014年12月ACCA F5考试真题
Performance ManagementMonday 1 December 2014Time allowedReading and planning: 15 minutesWriting: 3 hoursThis paper is divided into two sections:Section A – ALL 20 questions are compulsory and MUST beattemptedSection B – ALL FIVE questions are compulsory and MUST beattemptedFormulae Sheet is on page 14.Do NOT open this paper until instructed by the supervisor.During reading and planning time only the question paper maybe annotated. You must NOT write in your answer booklet until instructed by the supervisor.This question paper must not be removed from the examination hall.The Association of Chartered Certified AccountantsSection A – ALL 20 questions are compulsory and MUST be attemptedPlease use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.Each question is worth 2 marks.1 Dust Co has two divisions, A and B. Each division is currently considering the following separate projects:Division A $32·6 million $14·4 million30%Division B $22·2 million $8·8 million24%Capital required for the projectSales generated by projectOperating profit marginCost of capital 10% 10%Current return on investment of division 15% 9%If residual income is used as the basis for the investment decision, which Division(s) would choose to invest in the project?A B C D Division A onlyDivision B onlyBoth Division A and Division B Neither Division A nor Division B2 The following costs have arisen in relation to the production of a product:(i) Planning and concept design costs(ii) Testing costs(iii) Production costs(iv) Distribution and customer service costsIn calculating the life cycle costs of a product, which of the above items would be included?A B C D (iii) only(i), (ii) and (iii) only (i), (ii) and (iv) only All of the above3 Which of the following describes a ‘basic standard’ within the context of budgeting?A B C D A standard which is kept unchanged over a period of timeA standard which is based on current price levelsA standard set at an ideal level, which makes no allowance for normal losses, waste and machine downtime A standard which assumes an efficient level of operation, but which includes allowances for factors such as normal loss, waste and machine downtime4 The following statements have been made about planning and control as described in the three tiers of RobertAnthony’s decision-making hierarchy:(1) Strategic planning is concerned with making decisions about the efficient and effective use of existing resources(2) Operational control is about ensuring that specific tasks are carried out efficiently and effectivelyWhich of the above statements is/are true?A B C D 1 only2 onlyNeither 1 nor 2 Both 1 and 25 P Co makes two products – P1 and P2 – budgeted details of which are as follows:P1 $ P2 $Selling price 10·00 8·00 Cost per unit:Direct materials Direct labour Variable overhead Fixed overhead3·501·500·604·001·000·40 1·20 1·00 ––––––––––Profit per unit 3·20 1·60––––––––––Budgeted production and sales for the year ended 30 November 2015 are:Product P1 Product P2 10,000 units 12,500 unitsThe fixed overhead costs included in P1 relate to apportionment of general overhead costs only. However, P2 also includes specific fixed overheads totalling $2,500.If only product P1 were to be made, how many units (to the nearest unit) would need to be sold in order to achieve a profit of $60,000 each year?A B C D 25,625 units 19,205 units 18,636 units 26,406 units6 A company has the following production planned for the next four weeks. The figures reflect the full capacity level ofoperations. Planned output is equal to the maximum demand per product.Product A$ per unit160B$ per unit214C$ per unit100D$ per unit140Selling priceRaw material cost Direct labour cost Variable overhead cost Fixed overhead cost246624568818223324402218 16 10 8 12 ––––––––––––––––Profit 30 42 13 48––––––––––––––––Planned outputDirect labour hours per unit 3006125824034002The direct labour force is threatening to go on strike for two weeks out of the coming four. This means that only 2,160 hours will be available for production rather than the usual 4,320 hours.If the strike goes ahead, which product or products should be produced if profits are to be maximised?A B C D D and A B and D D only B and C7 The following table shows the number of clients who attended a particular accountancy practice over the last fourweeks and the total costs incurred during each of the weeks:Week Number of clients Total cost$1 2 3 4 40044042046036,88039,84036,80040,000Applying the high low method to the above information, which of the following could be used to forecast total cost ($) from the number of clients expected to attend (where x = the expected number of clients)?A B C D 7,280 + 74x 16,080 + 52x 3,200 + 80x 40,000/x8 Oxco has two divisions, A and B. Division A makes a component for air conditioning units which it can only sell toDivision B. It has no other outlet for sales.Current information relating to Division A is as follows:Marginal cost per unit $100Transfer price of the component $165Total production and sales of the component each year Specific fixed costs of Division A per year2,200 units $10,000Cold Co has offered to sell the component to Division B for $140 per unit. If Division B accepts this offer, Division A will be shut.If Division B accepts Cold Co’s offer, what will be the impact on profits per year for the group as a whole?A B C D Increase of $65,000 Decrease of $78,000 Decrease of $88,000 Increase of $55,0009 The following statements have been made in relation to activity-based costing:(1) A cost driver is a factor which causes a change in the cost of an activity(2) Traditional absorption costing tends to under-estimate overhead costs for high volume productsWhich of the above statements is/are true?A B C D 1 only2 onlyNeither 1 nor 2 Both 1 and 210 A linear programming model has been formulated for two products, X and Y. The objective function is depicted by theformula C = 5X + 6Y, where C = contribution, X = the number of product X to be produced and Y = the number of product Y to be produced.Each unit of X uses 2 kg of material Z and each unit of Y uses 3 kg of material Z. The standard cost of material Z is $2 per kg.The shadow price for material Z has been worked out and found to be $2·80 per kg.If an extra 20 kg of material Z becomes available at $2 per kg, what will the maximum increase in contribution be?A B C D Increase of $96 Increase of $56 Increase of $16 No change11 The following statements have been made about both standard costing and total quality management (TQM):(1) They focus on assigning responsibility solely to senior managers(2) They work well in rapidly changing environmentsWhich of the above statements is/are true?A B C D 1 only2 onlyNeither 1 nor 2 Both 1 and 212 The following statements have been made about environmental cost accounting:(1) The majority of environmental costs are already captured within a typical organisation’s accounting system. Thedifficulty lies in identifying them(2) Input/output analysis divides material flows within an organisation into three categories: material flows; systemflows; and delivery and disposal flowsWhich of the above statements is/are true?A B C D 1 only2 onlyNeither 1 nor 2 Both 1 and 213 Def Co provides accounting services to government departments. On average, each staff member works six chargeablehours per day, with the rest of their working day being spent on non-chargeable administrative work. One of thecompany’s main objectives is to produce a high level of quality and customer satisfaction.Def Co has set its targets for the next year as follows:(1) Cutting departmental expenditure by 5%(2) Increasing the number of chargeable hours handled by advisers to 6·2 per day(3) Obtaining a score of 4·7 or above on customer satisfaction surveysWhich of the above targets assesses economy, efficiency and effectiveness at Def Co?Economy Efficiency EffectivenessA B C D 12313122231314 Which of the following is an advantage of non-participative budgeting as compared to participative budgeting?A B C D It increases motivationIt is less time consumingIt increases acceptanceThe budgets produced are more attainable15 The following are all steps in the implementation of the target costing process for a product:(1) Calculate the target cost(2) Calculate the estimated current cost based on the existing product specification(3) Set the required profit(4) Set the selling price(5) Calculate the target cost gapWhich of the following represents the correct sequence if target costing were to be used?A B C D (1), (2), (3), (4), (5)(2), (3), (4), (1), (5) (4), (3), (1), (2), (5) (4), (5), (3), (1), (2)16 What is the name given to a budget which has been prepared by building on a previous period’s budgeted oractual figures?A B C D Incremental budget Flexible budget Zero based budget Functional budget17 Tree Co is considering employing a sales manager. Market research has shown that a good sales manager can increaseprofit by 30%, an average one by 20% and a poor one by 10%. Experience has shown that the company hasattracted a good sales manager 35% of the time, an average one 45% of the time and a poor one 20% of the time.The company’s normal profits are $180,000 per annum and the sales manager’s salary would be $40,000 perannum.Based on the expected value criterion, which of the following represents the correct advice which Tree Co should be given?A B C D Do not employ a sales manager as profits would be expected to fall by $1,300 Employ a sales manager as profits will increase by $38,700Employ a sales manager as profits are expected to increase by $100Do not employ a sales manager as profits are expected to fall by $39,90018 A company manufactures two products, C and D, for which the following information is available:Product C 1,0008135 Product D4,00010153Total5,00048,00028Budgeted production (units)Labour hours per unit/in totalNumber of production runs requiredNumber of inspections during production 8Total production set up costs Total inspection costsOther overhead costs $140,000 $80,000 $96,000Other overhead costs are absorbed on the basis of labour hours per unit.Using activity-based costing, what is the budgeted overhead cost per unit of product D?A B C D $43·84 $46·25 $131·00 $140·6419 X Co uses rolling budgeting, updating its budgets on a quarterly basis. After carrying out the last quarter’s update tothe cash budget, it projected a forecast cash deficit of $400,000 at the end of the year. Consequently, the planned purchase of new capital equipment has been postponed.Which of the following types of control is the sales manager’s actions an example of?A B C D Feedforward control Negative feedback control Positive feedback control Double loop feedback control20 The following circumstances may arise in relation to the launch of a new product:(i) Demand is relatively inelastic(ii) There are significant economies of scale(iii) The firm wishes to discourage new entrants to the market(iv) The product life cycle is particularly shortWhich of the above circumstances favour a penetration pricing policy?A B C D (ii) and (iii) only(ii) and (iv)(i), (ii) and (iii)(ii), (iii) and (iv) only(40 marks)Section B – ALL FIVE questions are compulsory and MUST be attempted1 Chair Co has developed a new type of luxury car seat. The estimated labour time for the first unit is 12 hours but alearning curve of 75% is expected to apply for the first eight units produced. The cost of labour is $15 per hour. The cost of materials and other variable overheads is expected to total $230 per unit.Chair Co plans on pricing the seat by adding a 50% mark-up to the total variable cost per seat, with the labour cost being based on the incremental time taken to produce the 8th unit.Required:(a) Calculate the price which Chair Co expects to charge for the new seat.Note: The learning index for a 75% learning curve is –0·415. (5 marks)(b) The first phase of production has now been completed for the new car seat. The first unit actually took12·5 hours to make and the total time for the first eight units was 34·3 hours, at which point the learning effectcame to an end. Chair Co are planning on adjusting the price to reflect the actual time it took to complete the8th unit.Required:(i) Calculate the actual rate of learning and state whether this means that the labour force actually learntmore quickly or less quickly than expected. (3 marks) (ii) Briefly explain whether the adjusted price charged by Chair Co will be higher or lower than the price you calculated in part (a) above. You are NOT required to calculate the adjusted price. (2 marks)(10 marks)2 Glam Co is a hairdressing salon which provides both ‘cuts’ and ‘treatments’ to clients. All cuts and treatments at thesalon are carried out by one of the salon’s three senior stylists. The salon also has two salon assistants and two junior stylists.Every customer attending the salon is first seen by a salon assistant, who washes their hair; next, by a senior stylist, who cuts or treats the hair depending on which service the customer wants; then finally, a junior stylist who dries their hair. The average length of time spent with each member of staff is as follows:Cut Hours 0·11 Treatment Hours0·31·50·5AssistantSenior stylistJunior stylist 0·5The salon is open for eight hours each day for six days per week. It is only closed for two weeks each year. Staff salaries are $40,000 each year for senior stylists, $28,000 each year for junior stylists and $12,000 each year for the assistants. The cost of cleaning products applied when washing the hair is $0·60 per client. The cost of all additional products applied during a ‘treatment’ is $7·40 per client. Other salon costs (excluding labour and raw materials) amount to $106,400 each year.Glam Co charges $60 for each cut and $110 for each treatment.The senior stylists’ time has been correctly identified as the bottleneck activity.Required:(a) Briefly explain why the senior stylists’ time has been described as the ‘bottleneck activity’, supporting youranswer with calculations. (4 marks) (b) Calculate the throughput accounting ratio (TPAR) for ‘cuts’ and the TPAR for ‘treatments’ assuming thebottleneck activity is fully utilised. (6 marks)(10 marks)3 The Hi Life Co (HL Co) makes sofas. It has recently received a request from a customer to provide a one-off order ofsofas, in excess of normal budgeted production. The order would need to be completed within two weeks. The following cost estimate has already been prepared:Direct materials: FabricWoodNote12$3,400410 200 m2 at $17 per m250 m at $8·20 per m 2Direct labour:SkilledSemi-skilled Factory overheads 200 hours at $16 per hour300 hours at $12 per hour500 hours at $3 per hour3453,2003,6001,500–––––––Total production cost 12,110Administration overheads at 10% of total production cost 6 1,211–––––––Total cost 13,321–––––––Notes1 The fabric is regularly used by HL Co. There are currently 300 m2 in inventory, which cost $17 per m 2. Thecurrent purchase price of the fabric is $17·50 per m 2.2 This type of wood is regularly used by HL Co and usually costs $8·20 per m 2. However, the company’s currentsupplier’s earliest delivery time for the wood is in three weeks’ time. An alternative supplier could deliver immediately but they would charge $8·50 per m 2. HL Co already has 500 m 2 in inventory but 480 m 2 of this is needed to complete other existing orders in the next two weeks. The remaining 20 m2 is not going to be needed until four weeks’ time.3 The skilled labour force is employed under permanent contracts of employment under which they must be paidfor 40 hours’ per week’s labour, even if their time is idle due to absence of orders. Their rate of pay is $16 per hour, although any overtime is paid at time and a half. In the next two weeks, there is spare capacity of 150 labour hours.4 5 There is no spare capacity for semi-skilled workers. They are currently paid $12 per hour or time and a half for overtime. However, a local agency can provide additional semi-skilled workers for $14 per hour.The $3 absorption rate is HL Co’s standard factory overhead absorption rate; $1·50 per hour reflects the cost of the factory supervisor’s salary and the other $1·50 per hour reflects general factory costs. The supervisor is paid an annual salary and is also paid $15 per hour for any overtime he works. He will need to work 20 hours’overtime if this order is accepted.6 This is an apportionment of the general administration overheads incurred by HL Co.Required:Prepare, on a relevant cost basis, the lowest cost estimate which could be used as the basis for the quotation. Explain briefly your reasons for including or excluding each of the costs in your estimate.(10 marks)4 Jamair was founded in September 2007 and is one of a growing number of low-cost airlines in the country of Shania.Jamair’s strategy is to operate as a low-cost, high efficiency airline, and it does this by:––Operating mostly in secondary cities to reduce landing costs.Using only one type of aircraft in order to reduce maintenance and operational costs. These planes are leased rather than bought outright.–––Having only one category of seat class.Having no pre-allocated seats or in-flight entertainment.Focusing on e-commerce with customers both booking tickets and checking in for flights online.The airline was given an ‘on time arrival’ ranking of seventh best by the country’s aviation authority, who rank all 50 of the country’s airlines based on the number of flights which arrive on time at their destinations. 48 Jamair flights were cancelled in 2013 compared to 35 in 2012. This increase was due to an increase in the staff absentee rate at Jamair from 3 days per staff member per year to 4·5 days.The average ‘ground turnaround time’ for airlines in Shania is 50 minutes, meaning that, on average, planes are on the ground for cleaning, refuelling, etc for 50 minutes before departing again. Customer satisfaction surveys have shown that 85% of customers are happy with the standard of cleanliness on Jamair’s planes.The number of passengers carried by the airline has grown from 300,000 passengers on a total of 3,428 flights in 2007 to 920,000 passengers on 7,650 flights in 2013. The overall growth of the airline has been helped by the limited route licensing policy of the Shanian government, which has given Jamair almost monopoly status on some of its routes. However, the government is now set to change this policy with almost immediate effect, and it has become more important than ever to monitor performance effectively.Required:(a) Describe each of the four perspectives of the balanced scorecard. (6 marks)(b) For each perspective of the balanced scorecard, identify one goal together with a corresponding performancemeasure which could be used by Jamair to measure the company’s performance. The goals and measures should be specifically relevant to Jamair. For each pair of goals and measures, explain why you have chosen them. (9 marks)(15 marks)5 The Safe Soap Co makes environmentally-friendly soap using three basic ingredients. The standard cost card for onebatch of soap for the month of September was as follows:Material Lye Coconut oil Shea butter Kilograms0·250·6Price per kilogram ($)1040·5 3The budget for production and sales in September was 120,000 batches. Actual production and sales were 136,000 batches. The actual ingredients used were as follows:Material Lye Coconut oil Shea butter Kilograms 34,080 83,232 64,200Required:(a) Calculate the total material mix variance and the total material yield variance for September. (8 marks)(b) In October the materials mix and yield variances were as follows:Mix: $6,000 adverseYield: $10,000 favourableThe production manager is pleased with the results overall, stating:‘At the beginning of September I made some changes to the mix of ingredients used for the soaps. As I expected, the mix variance is adverse in both months because we haven’t yet updated our standard cost card but, in both months, the favourable yield variance more than makes up for this. Overall, I think we can be satisfied that the changes made to the product mix are producing good results and now we are able to produce more batches and meet the growing demand for our product.’The sales manager, however, holds a different view and says:‘I’m not happy with this change in the ingredients mix. I’ve had to explain to the board why the sales volume variance for October was $22,000 adverse. I’ve tried to explain that the quality of the soap has declined slightly and some of my customers have realised this and simply aren’t happy but no-one seems to be listening. Some customers are even demanding that the price of the soap be reduced and threatening to go elsewhere if the problem isn’t sorted out.’Required:(i) Briefly explain what the adverse materials mix and favourable materials yield variances indicate aboutproduction at Safe Soap Co in October.Note: You are NOT required to discuss revision of standards or operational and planning variances.(4 marks)(ii) Discuss whether the sales manager could be justified in claiming that the change in the materials mix has caused an adverse sales volume variance in October. (3 marks)(15 marks)Formulae SheetLearning curveY = ax bWhere Y = cumulative average time per unit to produce x unitsa = the time taken for the first unit of outputx = the cumulative number of units producedb = the index of learning (log LR/log2)LR = the learning rate as a decimalDemand curveP = a – bQchange in priceb = change in quantitya = price when Q = 0MR = a – 2bQEnd of Question Paper。
KAPLAN ACCA 2014年12月模考题 F5 final QP
Date sent to markerDate received from marker Date returned to student Student's overall markFINAL ASSESSMENT SCRIPT SUBMISSION FORMScript marking is only available to Classroom, Live Online and Distance Learning students enrolled on appropriate Kaplan courses.Name: ………………………………………………………..…………………..……….….… Address: ……………………………………………………………………………………....... ………………………………………………………..……………………………………….........………………………………………………………............…………………….................. Kaplan Student Number: ………………………………………………………….....…Your email address:ACCA – Paper F5Performance ManagementDecember 2014 Final AssessmentInstructions• Please complete your personal details above.• All scripts should ideally be submitted to your Kaplan centre for marking via email to help speed up the marking process. Please scan this form and your answer script in a single PDF and email it to your Kaplan centre.• Alternatively you may post your script to us. 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No part of this examination may be reproduced or transmitted in any form orby any means, electronic or mechanical, including photocopying, recording, or by any informationstorage and retrieval system, without prior permission from Kaplan Publishing.FINAL ASSESSMENT QUESTIONSFORMULAELearning curve Y = ax bWhere y = cumulative average time per unit to produce × units a = the time taken for the first unit of output x= the cumulative number of units producedb = the index of learning (log LR/log 2)LR = the learning rate as a decimalDemand curve P = a − bQb =quantityin Change pricein Changea = price when Q = 0MR = a – 2bQ请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记PAPER F5 : PERFORMANCE MANAGEMENTSECTION AALL TWENTY questions are compulsory and must be attempted Each question is worth 2 marks(This scenario is to be used for questions 1 and 2)Bean Products Ltd manufactures two types of Beanbags - Standard and Deluxe. Bothbeanbags are produced on the same equipment and use similar processes. The following budget data has been obtained for the year ended 31 December 2013:Product Standard Deluxe Production Quantity 25,000 2,500 Number of purchase orders 400 200 Number of setups 150 100 Resources required per unit Standard Deluxe Direct Material ($) 25 62.5 Direct labour hours 10 10Machine time (in hours) 55Budgeted production overheads for the year have been analysed as follows: Volume related overheads $275,000Purchases related overheads $300,000 Set-up related overheads $525,000Labour is paid at $20 per hour. The company’s present system is to absorb overheads by product units using rates per labour hour. However, the company is considering implementing a system of activity-based costing. An activity-based costing investigation revealed that the cost drivers for the overhead costs are as follows: Volume related overheads Machine hoursPurchases related overheads Number of purchase orders Set-up related overheads Number of setups1 The unit cost for the Deluxe type of beanbag using the current absorption costing method is:2 The unit cost for the Deluxe type of beanbag using the proposed activity-based costing approach is:请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记FINAL ASSESSMENT QUESTIONS3 The following statements have been made about lifecycle costing: (1)A lifecycle costing exercise enables an organisation to appraise the profitability overthe whole life of the product rather than a period at a time. Thus, products that are loss making initially, but profitable in the longer term, , will be accepted.(2)A lifecycle costing exercise enables management to focus marketing and promotion when required, at certain critical points of the life cycle.Which of the above statements is/are true? A (1) only B (2) only C Neither (1) nor (2) D Both (1) and (2)4The following information relates to product Z:• Selling price per unit $250 •Sales for 2015500 unitsIf the company requires a return of 15% in the coming year on its investment of $250,000in product Z, the target cost for each unit for the coming year isA $145B $155C $165D $175 5You are currently in employment, earning $25,000 per annum. You have decided to go intobusiness for yourself as a freelancer for publishing companies and will operate out of a unit available for rent at the edge of the town you live in.How should (i) your current salary and (ii) the rent of the unit be treated when deciding whether or not to start your freelancing business? A (i) as an irrelevant cost and (ii) as an opportunity costB (i) as a sunk cost and (ii) as a committed costC (i) as an incremental cost and (ii) as an opportunity costD (i) as an opportunity cost and (ii) as an incremental cost请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记PAPER F5 : PERFORMANCE MANAGEMENT6 DVL plc sells three products.The budgeted fixed costs for the period amount to $592,000.请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记The budgeted contribution to sales ratio (C/S ratio) and sales mix are as follows:Product C/S ratio Mix %D 27 30V 56 20L 38 50The breakeven revenue is closest toA $238,576B $1,467,769C $1,545,692D $1,391,109Which of the following statements is/are true?Namepoint FixedcostsBreakevengraphofA Breakeven chart N MB Breakeven chart M OC Profit/Volume chart M PD Profit/Volume chart N OFINAL ASSESSMENT QUESTIONS8 A company employs skilled technicians, and unskilled labourers. Skilled technicians must be no more of 40% of the total number of persons employed. Skilled technicians are denotedby x and unskilled labourers by y.Which of the following inequalities express the above constraint? A52x ≤ x + yB x ≤5y)2(x + C52x ≤ y D x ≤52y9Crantock Ltd produced three joint products 1, 2 and 3, incurring common costs of $750,000. Each product can be sold immediately as the production process ceases, or sold for a higher price after further processing work has been undertaken. Relevant information is as follows:Product Product 1 Product 2 Product 3 Units produced 10,000 6,000 4,000 Selling price at separation point $9 per unit $11 per unit $7 p.u. Further processing costs $25,000 $35,000 $20,000 Final selling price $11 per unit $17 per unit$13 p.u.For which products is it worth the company undertaking further processing?A Products 1, 2 and 3B Products 1 and 2C Products 1 and 3D Products 2 and 310The owner of a boat-building company is deciding whether or not to exhibit at a particularboat show. The total cost of exhibiting at the show will be $6,000. Sales will be dependenton the weather. Tehre is a 0.3 chance that the weather will be dry and 0.7 chance that the weather will be wet.If the weather is dry the owner expects to see six yachts at the show. If the weather is wt he expects to sell only two yachts at the show. The contribution per yacht sold is $10,000. If the owner does not exhibit at the show, he believes that two of the yachts he expects to sell at this show would be sold at another show later in the year. What is the expected net gain from exhibiting at the show? A $0 B $6,000 C $12,000 D $26,000请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记PAPER F5 : PERFORMANCE MANAGEMENT11 Fill in the blank in the following paragraph: In some situations feedback control is inappropriate in budgetary control. It involves acting‘after the event’ to bring the process back to its planned course. This may be costly if things have gone badly wrong. By contrast, ........................control works on the basis of forecast results. 12The following statements have been made about rolling budgets: (1) The use of rolling budgets has motivational effects, which may induce improved performance.(2)When a decision has been made to adopt rolling budgets, all the budgets in a system need to be prepared on a rolling basis.Which of the above statements is/are true? A (1) only B (2) only C Neither (1) nor (2) D Both (1) and (2)13BB plc has received an order to make eight units of a new product called the Betty Boop. The time to produce the first unit is estimated to be 100 hours, and a 80% learning curve is expected. The rate of pay is $6 for each hour.The direct materials for each unit is $2,500 and the fixed costs associated with the order are $9,600.What is the average cost of each unit (to the nearest $) for this order of product Betty Boop?A $4,007B $4,180C $6,158D $10,160 14Which of the following best describes a basic standard? A A standard set at an ideal level, which makes no allowance for normal losses, waste and machine downtimeB A standard which assumes an efficient level of operation, but which includes allowances for factors such as normal loss, waste and machine downtimeC A standard which is kept unchanged over a period of timeD A standard which is based on current price levels请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记15 A company manufactures a fruit flavoured drink concentrate by mixing two liquids (X and Y). The standard cost card for 10 litres of the drink concentrate isLiquid X 5 litres @ $16 per litre $80Liquid Y 6 litres @ $25 per litre $150____________________Total11 litres 230The company does not hold any inventory. During the last period the company produced4,800 litres of the drink concentrate. This was 200 litres below the budgeted output. Thecompany purchased 2,200 litres of X for $18 per litre, and 2,750 litres of Y for $21 per litre .What was the materials mix variance for the period?A $150 adverseB $450 adverseC $6,480 favourableD $6,900 favourable (The following scenario applies to questions 16 and 17) Maigold Ltd operates a standard absorption costing system. The following information has beenextracted from the standard cost card of one of its products:Budgeted production 1,500 unitsDirect Material Cost: 7 kgs × $4.10 = $28.70 per unitActual results for the period were as follows:Production 1,600 unitsDirect Material (purchased and used) : 12,000 kgs, cost $52,200It has subsequently been noted that, due to a change in economic conditions, the best price that the material could have been purchased for was $4.50 per kg during the period.16The material price planning variance is 17The operational material usage variance is请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记18 EF plc has 3 divisions – P, Q and R – whose performance is assessed on return on investment (ROI). The ROI for the divisions for the coming year is expected to be 24%, 28%and 23%, respectively. . Three new proposals are now being considered:(i)P is considering investing $75,000 in order to increase profit by $21,600 each year. (ii) Q is considering selling a machine, forecast to earn a profit of $2,500 in the comingyear, for its carrying value (NBV) of $7,000.Which of the following division(s) will REJECT the proposal under consideration becauseof its effect on ROI?A PB QCP and Q DNeither P nor Q 19 The following statements have been made about ROI and RI:(i) If a company uses a balanced scorecard approach to the provision of information itwill not use ROI or Residual Income as divisional performance measures.(ii) The Residual Income will always increase when investments earning above the costof capital are undertaken.(iii) An advantage of the Residual Income performance measure is that it facilitatescomparisons between investment centres.Which of the above statements is/are true?A (i) onlyB (ii) onlyC(i) and (iii) only D All of the above 20 The following statements have been made about the meaning of the term ‘effectiveness’ ina Value For Money approach to performance management:(1) Effectiveness means ‘ensuring outputs succeed in achieving objectives’(2) Effectiveness means ‘Getting out as much as possible for what goes in’Which of the above statements is/are true?A (1) onlyB (2) onlyCBoth (1) and (2) fit the definition DNeither (1) nor (2) fit the definition请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记SECTION BALL FIVE questions are compulsory and MUST be attempted1 MERTA Ltd is a leading provider of nutritional product mixes targeted at all types oflivestock. The Managing Director of Merta has just returned from a conference on ‘TheTheory of Constraints and Throughput Accounting’. As he is keen to maximise profits andalready operates in a strict JIT environment, he has decided to adopt throughputaccounting for the business short-term decisions.The following information is available:1 The company specialises in three particular meal mixes: Mix A, Mix B and Mix C. Eachmix uses the same three key ingredients - although in different quantities: vitaminsupplements (Ingredient ‘V’), mineral supplements (Ingredient ‘M’), and organic acids(Ingredient ‘OA’).2The mixes are produced in batches of 100 units. Costs per batch are as follows: Mix A Mix B Mix CIngredient ‘V’ ($5 per kg) $150 $120 $90 Ingredient ‘M’ ($10 per kg) $70 $90 $40Ingredient ‘OA’ ($15 per kg) $30 $75 $45Skilled Labour $10 $30 $153The price of each of the mixes A, B and C is $340, $450 and $270 respectively. 4 Recruiting skilled food mixers is particularly difficult, but their loyalty to the companyis high and staff turnover is nil. Mixing hours have correctly been identified as thebottleneck resource. Only 5,000 hours are available every quarter, and the cost perhour is $10.5Other fixed costs (comparable to ‘factory costs’ in a traditional manufacturingenvironment) are general overheads, which amount to $224,000 per quarter. Required:(a) Calculate the throughput accounting ratio for each of the three mixes. (5 marks) (b) Merta’s production plans for the next three months have been prepared and theestimated maximum demand from customers is forecast as follows:Mix AMix B Mix C 1,150 batches1,100 batches 900 batches These figures include a contract for the delivery of 50 batches of each mix to animportant agricultural customer. If this minimum contract is not satisfied, Merta willhave to pay a substantial financial penalty for non-delivery, and suffer long-termdamage to its reputation as a top-rated supplier to farms.Required:Calculate the optimum product mix and the maximum quarterly profit that Mertacan achieve. (5 marks)(Total: 10 marks)请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记2 MOC makes and sells an executive game for two distinct markets in which it currently has a monopoly. The fixed costs of production per month are $20,000, and variable costs perunit produced, and sold, are $40. The monthly sales can be thought of as X, where X = X1 +X2, with X1 and X2 denoting monthly sales in their respective markets. Detailed marketresearch has revealed the demand functions in the markets to be as follows, with pricesshown as P1 and P2:Market 1: P1 = 55 − 0.05X1 Market 2: P2 = 200 − 0.2X2The management accountant believes there should be price discrimination; the price iscurrently $50 per game in either market.Required:Analyse the information for the executive game AND, given the managementaccountant’s belief:(a) Calculate the price to charge in EACH market, and the quantity to produce (and sell)each month, to maximise profit. (5 marks)(b) Calculate the Total Monthly Contribution for EACH market at the price andquantities calculated in part (a) and the maximum monthly profit in TOTAL.(4 marks)(Total: 10 marks)3 The Green Company (GC) was formed a couple of years ago and has recently won a five-year local government contract to provide waste recycling services in the county ofCleanland. The company recently appointed a new Director to take responsibility for thelocal government contract. He has worked in various positions in other waste recyclingcompanies for a number of years. He has put together a team of managers by recruitingsome of his former colleagues, and some of GC’s current managers.The Director is also aware that GC’s account department currently consists of one part-qualified accountant who has a heavy workload, and who prepares GC’s budget usingspreadsheets.The local government contract stipulates that the company should prepare detailedbudgets for its first year of operations to show how it intends to meet the various operatingtargets that are stated in the contract. The new Director is undecided about whether he should prepare the budgets himself, or whether he should involve his management team,including the newly recruited managers, in the process.Required:(a) Discuss the risk of using the company accountant’s own spreadsheets forbudgeting. (5 marks) (b) List the potential benefits and the potential disadvantages of involving the new andexisting managers in the budget setting process. (5 marks)(Total: 10 marks)请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记4 BWealth Ltd provides a fee-based, high quality financial planning and personalised investment service to ‘high net worth’ retired individuals, as well as to trusts, charities andsmall businesses.BWealth employees work to enhance the income of the business’ long-term investors. Theindustry BWealth operates in is becoming more and more competitive. The ManagingPartner feels that promotion of new investment products to BWealth’s clients would belikely to upset their generally conservative nature and, as a result, the business has beenmanaged with similar products for the last couple of years.The last two years of financial results are shown below:2010 2009Turnover ($000) 1,001 950Net profit ($000) 198 190Average debtor / trade receivables days(industry average 20 days) 19 days 21 daysAverage cash balances ($000) 20 19BWealth operates in a country where the average rate of inflation is around 3% per annum.Required:(a) Assess the financial performance of BWealth using the information given above.(5 marks) During the early part of 2009, BWealth employed a newly qualified management accountant. He quickly became concerned about the potential performance of thebusiness , and to investigate his concerns, he started to gather data to measure some non-financial measures of success. The data he has gathered is shown below:Internal Business Processes 2010 2009Error rates in jobs done 15% 9%Average job completion time 7 weeks 9 weeksCustomer Knowledge2010 2009 Number of customers 1,210 1,432 Average fee levels ($) 549 450Market Share 12% 19%Learning and Growth2010 2009 Percentage of revenue from non-core work 4% 5%Industry average of the proportion of revenuefrom non-core work in similar practices 30% 25%Employee retention rate. 60% 80%请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记Notes1 Error rates measure the number of jobs with mistakes made by staff as a proportionof the number of clients serviced.2 Core work is defined as being investment management. Non-core work is definedprimarily as estate planning and retail banking. Non-core work is traditionally highmargin work.Required:(b) Assess the performance of the business with comments on all non-financial aspectsseparately, as well as a concluding comment on the overall performance of thebusiness. (10 marks)(Total: 15 marks)ESTATES5 LOIRELoire Estates produces and sells a number of different types of fine wine. The followingstandard and actual information is available for September 2013 for one particular type ofwine, Sancerre.Budget ActualSales and production 3,000 3,600Material price per kg $40 $38Labour price per hour $30 $33Kg’s of material 5,000 4,500Labour hours 6,000 7,000The total materials price variance of $9,000 favourable has been correctly calculated.Additional informationThe actual labour costs and material costs for Sancerre are 10% higher and 5% lowerrespectively than the original budget. 6% of the labour cost increase from the originalstandard is due to an underestimation of a wage award. The remaining 4% increase is dueto poor short term decision making.3% of the material cost reduction is due to a fall in general market prices. The remaining2% is due to short term operational improvements.Required:(a) Calculate the following, showing all workings clearly:(i) The material price planning variance and the material price operationalvariance. (2 marks)(ii) The labour rate planning variance and the labour rate operational variance.marks)(2(b) The following information is available for September 2013 for the Chenin Blanc, another of Loire Estates’ wines.Standard material for one bottle of wine is as follows:MaterialAmount in kg Standard cost per kg ($) Ingredient A5 0.50 Ingredient B 0.5 1.50During September 2013 actual production of Chenin Blanc was 4,500 bottles. Theactual materials used are as follows:MaterialAmount in kgs Actual cost per kg ($) Ingredient A21,500 0.60 Ingredient B2,700 1.60Required:Calculate the material mix and yield variance for Chenin Blanc for September 2013.Include a brief comment on the two variances calculated. (6 marks)(c) Discuss the problems that can arise from using standard costs in a rapidly changingenvironment. (5 marks) (Total: 15 marks) 请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记请联系ＱＱ １３９２５７６２０１ 获取答案！ ２０１５版ＢＰＰ ＫＡＰＬＡＮ 高清ＰＤＦ教材 练习册 复习卡 笔记。
ACCA 历年真题f5_2009_jun_q
P a p e r F 5This is a blank page.The question paper begins on page 3.2ALL FIVE questions are compulsory and MUST be attempted1Yam Co is involved in the proc essing of sheet metal into produc ts A, B and C using three proc esses, pressing, stretching and rolling. Like many businesses Yam faces tough price competition in what is a mature world market.The factory has 50 production lines each of which contain the three processes: Raw material for the sheet metal is first pressed then stretched and finally rolled. The processing capacity varies for each process and the factory manager has provided the following data:Processing time per metre in hoursProduct A Product B Product CPressing0·500·500·40Stretching0·250·400·25Rolling0·400·250·25The factory operates for 18 hours each day for five days per week. It is closed for only two weeks of the year for holidays when maintenance is carried out. On average one hour of labour is needed for each of the 225,000 hours of factory time. Labour is paid $10 per hour.The raw materials cost per metre is $3·00 for product A, $2·50 for product B and $1·80 for product C. Other factory costs (excluding labour and raw materials) are $18,000,000 per year. Selling prices per metre are $70 for product A, $60 for product B and $27 for product C.Yam carries very little inventory.Required:(a)Identify the bottleneck process and briefly explain why this process is described as a ‘bottleneck’.(3 marks)(b)Calculate the throughput accounting ratio (TPAR) for each product assuming that the bottleneck process isfully utilised. (8 marks)(c)Assuming that the TPAR of product C is less than 1:(i)Explain how Yam could improve the TPAR of product C. (4 marks)(ii)Briefly discuss whether this supports the suggestion to cease the production of product C and briefly outline three other factors that Yam should consider before a cessation decision is taken.(5 marks)(20 marks)3[P.T.O.2Oliver is the owner and manager of Oliver’s Salon which is a quality hairdresser that experiences high levels of competition. The salon traditionally provided a range of hair services to female clients only, including cuts, colouring and straighteningA year ago, at the start of his 2009 financial year, Oliver decided to expand his operations to include the hairdressingneeds of male clients. Male hairdressing prices are lower, the work simpler (mainly hair cuts only) and so the time taken per male client is much less.The prices for the female clients were not increased during the whole of 2008 and 2009 and the mix of services provided for female clients in the two years was the same.The latest financial results are as follows:20082009$$$$ Sales200,000238,500 Less cost of sales:Hairdressing staff costs65,00091,000Hair products –female29,00027,000Hair products – male8,000––––––––––––––94,000126,000––––––––––––––––Gross profit106,000112,500 Less expenses:Rent10,00010,000Administration salaries9,0009,500Electricity7,0008,000Advertising2,0005,000––––––––––––––T otal expenses28,00032,500––––––––––––––––Profit78,00080,000––––––––––––––––Oliver is disappointed with his financial results. He thinks the salon is much busier than a year ago and was expecting more profit. He has noted the following extra information:1.Some female clients complained about the change in atmosphere following the introduction of male services,which created tension in the salon.2.T wo new staff were recruited at the start of 2009. The first was a junior hairdresser to support the specialisthairdressers for the female clients. She was appointed on a salary of $9,000 per annum. The second new staff member was a specialist hairdresser for the male clients. There were no increases in pay for existing staff at the start of 2009 after a big rise at the start of 2008 which was designed to cover two years’ worth of increases.Oliver introduced some non-financial measures of success two years ago.20082009Number of complaints1246Number of male client visits03,425Number of female client visits8,0006,800Number of specialist hairdressers for female clients45Number of specialist hairdressers for male clients014Required:(a)Calculate the average price for hair services per male and female client for each of the years 2008 and 2009.(3 marks)(b)Assess the financial performance of the Salon using the data above. (11 marks)(c)Analyse and comment on the non-financial performance of Oliver’s business, under the headings of qualityand resource utilisation.(6 marks)(20 marks)5[P.T.O.3Crumbly Cakes make cakes, which are sold directly to the public. The new production manager (a celebrity chef) has argued that the business should use only organic ingredients in its cake production. Organic ingredients are more expensive but should produce a product with an improved flavour and give health benefits for the customers. It was hoped that this would stimulate demand and enable an immediate price increase for the cakes.Crumbly Cakes operates a responsibility based standard costing system which allocates variances to specific individuals. The individual managers are paid a bonus only when net favourable variances are allocated to them.The new organic cake production approach was adopted at the start of March 2009, following a decision by the new production manager. No change was made at that time to the standard costs card. The variance reports for February and March are shown below (Fav = Favourable and Adv = Adverse)Manager responsible Allocated variancesFebruary March Variance $Variance $Production managerMaterial price (total for all ingredients)25Fav 2,100Adv Material mix 0600Adv Material yield20Fav 400Fav Sales managerSales price40Adv 7,000Fav Sales contribution volume35Adv3,000FavThe production manager is upset that he seems to have lost all hope of a bonus under the new system. The sales manager thinks the new organic cakes are excellent and is very pleased with the progress made.Crumbly Cakes operate a JIT stock system and holds virtually no inventory.Required:(a)Assess the performance of the production manager and the sales manager and indicate whether the currentbonus scheme is fair to those concerned.(7 marks)In April 2009 the following data applied:Standard cost card for one cake (not adjusted for the organic ingredient change)Ingred ients Kg $Flour 0·100·12 per kg Eggs 0·100·70 per kg Butter 0·101·70 per kg Sugar0·100·50 per kg T otal input0·40Normal loss (10%)(0·04)Standard weight of a cake 0·36Standard sales price of a cake0·85Standard contribution per cake after all variable costs0·356The budget for production and sales in April was 50,000 cakes. Actual production and sales was 60,000 cakes in the month, during which the following occurred:Ingredients used Kg$Flour5,700$741Eggs6,600$5,610Butter6,600$11,880Sugar4,578$2,747T otal input23,478$20,978Actual loss(1,878)Actual output of cake mixture21,600Actual sales price of a cake$0·99All cakes produced must weigh 0·36 kg as this is what is advertised.Required:(b)Calculate the material price, mix and yield variances and the sales price and sales contribution volumevariances for April. You are not required to make any comment on the performance of the managers.(13 marks)(20 marks)7[P.T.O.4Bits and Pieces (B&P) operates a retail store selling spares and accessories for the car market. The store has previously only opened for six days per week for the 50 working weeks in the year, but B&P is now considering also opening on Sundays.The sales of the business on Monday through to Saturday averages at $10,000 per day with average gross profit of 70% earned.B&P expects that the gross profit % earned on a Sunday will be 20 percentage points lower than the average earned on the other days in the week. This is because they plan to offer substantial discounts and promotions on a Sunday to attract customers. Given the price reduction, Sunday sales revenues are expected to be 60% more than the average daily sales revenues for the other days. These Sunday sales estimates are for new customers only, with no allowance being made for those customers that may transfer from other days.B&P buys all its goods from one supplier. This supplier gives a 5% discount on all purchases if annual spend exceeds $1,000,000.It has been agreed to pay time and a half to sales assistants that work on Sundays. The normal hourly rate is $20 per hour. In total five sales assistants will be needed for the six hours that the store will be open on a Sunday. They will also be able to take a half-day off (four hours) during the week. Staffing levels will be allowed to reduce slightly during the week to avoid extra costs being incurred.The staff will have to be supervised by a manager, currently employed by the company and paid an annual salary of $80,000. If he works on a Sunday he will take the equivalent time off during the week when the assistant manager is available to cover for him at no extra cost to B&P. He will also be paid a bonus of 1% of the extra sales generated on the Sunday project.The store will have to be lit at a cost of $30 per hour and heated at a cost of $45 per hour. The heating will come on two hours before the store opens in the 25 ‘winter’ weeks to make sure it is warm enough for customers to come in at opening time. The store is not heated in the other weeksThe rent of the store amounts to $420,000 per annum.Required:(a)Calculate whether the Sunday opening incremental revenue exceeds the incremental costs over a year (ignoreinventory movements) and on this basis reach a conclusion as to whether Sunday opening is financially justifiable.(12 marks)(b)Discuss whether the manager’s pay deal (time off and bonus) is likely to motivate him.(4 marks)(c)Briefly discuss whether offering substantial price discounts and promotions on Sunday is a good suggestion.(4 marks)(20 marks)85Northland’s major towns and cities are maintained by local government organisations (LGO), which are funded by central government. The LGOs submit a budget each year which forms the basis of the funds received.You are provided with the following information as part of the 2010 budget preparation.OverheadsOverhead costs are budgeted on an incremental basis, taking the previous year’s actual expenditure and adding a set % to allow for inflation. Adjustments are also made for known changes. The details for these are:Overhead cost category2009 cost ($)Known changes Inflation adjustmentbetween 2009 and 2010 Property cost120,000None+5%Central wages150,000Note 1 below+3%Stationery25,000Note 2 below0%Note 1: One new staff member will be added to the overhead team; this will cost $12,000 in 2010Note 2: A move towards the paperless office is expected to reduce stationery costs by 40% on the 2009 spend Road repairsIn 2010 it is expected that 2,000 metres of road will need repairing but a contingency of an extra 10% has been agreed.In 2009 the average cost of a road repair was $15,000 per metre repaired, but this excluded any cost effects of extreme weather conditions. The following probability estimates have been made in respect of 2010:Weather type predicted Probability Increase in repair costGood0·70Poor0·1+10%Bad0·2+25%Inflation on road repairing costs is expected to be 5% between 2009 and 2010.New roadsNew roads are budgeted on a zero base basis and will have to compete for funds along with other capital projects such as hospitals and schools.Required:(a)Calculate the overheads budget for 2010. (3 marks)(b)Calculate the budgets for road repairs for 2010. (6 marks)(c)Explain the problems associated with using expected values in budgeting by an LGO and explain why acontingency for road repairs might be needed. (8 marks)(d)Explain the process involved for zero based budgeting.(3 marks)(20 marks)9[P.T.O.10。
ACCA考试F4公司法与商法真题2014年12月_真题-无答案
ACCA考试F4公司法与商法真题2014年12月(总分100,考试时间120分钟)Section A – ALL 45 questions **pulsory and MUST be attemptedPlease use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer toeach multiple choice question.1. Which of of the following involves an offer which may only be accepted by performing an action?A. A collateral contractB. A unilateral contractC. A bilateral contract2. An agency relationship which is made retrospectively is referred to by which of thefollowing terms?A. Agency by estoppelB. Agency by ratificationC. Agency by necessity3. In contract law, the ‘market rule’ arises in relation to which of the following?A. OfferB. ConsiderationC. RemotenessD. Mitigation4. In relation to a debenture, which of the following is NOT true?A. It may be issued at a discountB. Interest on it may be paid from capitalC. It is paid after preference sharesD. It is freely transferable5. Tan writes to Yun stating that he will sell his car to him for £10,000. At the same time, Yun writes to Tan stating that he will buy his car for £10,000.Which of the following statements applies to this situation?A. There is a binding agreement due to the postal ruleB. There is a collateral contractC. There is neither an agreement nor a contract6. Which of the following statements about contracts of employment is true?A. They can be made either orally or in writingB. They must be made in writingC. They must be evidenced in writing7. Where directors make a false statement of solvency prior to a members’ voluntary liquidation, which of the following have **mitted under the relevant legislation?A. A breach of criminal law with criminal penaltiesB. A breach of civil law with criminal penaltiesC. A breach of civil law with civil liabilityD. A breach of both civil and criminal law with liabilities under both8. Which of the following is the consequence when a patient signs a medical consent form before an operation?A. The patient gives up any right of action for any injury sufferedB. Any action for any injury suffered during the operation is limited to negligenceC. The level of any potential payment for any injury suffered is reduced9. Where a contract states the sum to be paid in the event of a breach of contract, the stated sum is known as which of the following?A. Unliquidated damagesB. Liquidated damagesC. C Specific damagesD. Nominal damages10. Which of the following applies to the concept of enlightened shareholder value?A. It is the price shares can be expected to raise if they were to be soldB. It is the yardstick for assessing the performance of directors’ dutiesC. It is the standard of behaviour expected of shareholders in general meetings11. Which of the following involves a summary dismissal in relation to a contract of employment?A. Both parties agree to end the contract immediately without noticeB. The employee breaks the contract without noticeC. The employer terminates the contract without notice12. What qualification is **pany secretary of a private **pany required to have?A. An appropriate legal qualificationB. An appropriate professional qualification such as ACCAC. No qualification13. Statutory redundancy payment is calculated on the basis of which of the following?A. Length of service and pay onlyB. Age and length of service onlyC. Age, length of service and pay14. In relation to wrongful trading, the standard against which the conduct of directors will be assessed is which of the following?A. Purely subjective, depending on the actual skill of the directorB. Purely objective, depending on what is expected of a director in that positionC. A mixture of subjective and objective but only to increase potential liabilityD. A mixture of subjective and objective but only to reduce potential liability15. Which of the following statements as regards an acceptance of an offer ‘subject to contract’ is true?A. It binds the offerorB. It binds neither partyC. It binds both parties16. Su had just passed her driving test when she negligently drove into a pedestrian. What standard of care will Su be judged by?A. The objective standard of a newly qualified driver, lack of experience will be taken intoaccountB. The objective standard of a competent driver, lack of experience will not be taken into accountC. The subjective standard of actual ability17. Which of the following are ordinary partnerships UNABLE to create in relation to their property?A. MortgagesB. Fixed chargesC. Floating charges18. Which of the following courts deal with civil law matters ONL Y?A. The Crown CourtB. The magistrates’ courtC. The county court19. Jo promises to pay a reward for the return of her lost phone. Mia finds the phone and returns it to Jo.Which of the following types of consideration has Mia provided?A. Executed considerationB. Executory considerationC. Past consideration20. Which of the following requires court approval before the appointment of an administrator?A. CreditorsB. Holders of floating chargesC. The directors of **panyD. **pany itself21. Which of the following is an English court NORMALL Y bound to follow?A. An obiter statement of a higher courtB. A ratio of a lower courtC. A ratio of a court at the same levelD. An obiter statement of the Supreme Court22. Which of the following courts hear appeals from the magistrates’ court?(1) County court(2) Crown Court(3) High CourtA. (1) and (2) onlyB. (2) and (3) onlyC. (1) and (3) onlyD. (1), (2) and (3)23. Which of the following is NOT an automatic consequence of a compulsory winding up order against a public **pany?A. Transfers of shareholdings are suspendedB. Liquidation is deemed to start on the date of the issuing of the orderC. Directors cease to exercise any management powerD. Employees are immediately dismissed24. Which TWO of the following apply to shares of companies whose names end in ‘Ltd’?(1) They may not be issued to non-members(2) They may not be offered to the public (3) They may not be transferred (4) They may not be traded on the stock exchangeA. (1) and (2)B. (2) and (3)C. (1) and (4)D. (2) and (4)25. Which of the following statements regarding the age limits for serving as a director in a public **pany is true?A. Minimum age 16 years and no maximum ageB. Minimum age 21 years and no maximum ageC. Minimum age 21 years and maximum age 75 yearsD. Minimum age 16 years and maximum age 75 years26. Which TWO of the following are private law actions?(1) Those between individuals(2) Those between business organisations(3) Those between individuals and the stateA. (1) and (2)B. (1) and (3)C. (2) and (3)27. In which procedure does a **mittee operate?(1) Compulsory liquidation (2) A members’ voluntary liquidation (3) A creditors’ voluntary liquidation (4) AdministrationA. (1) and (2)B. (2) and (4)C. (1) and (3)D. (3) and (4)28. The category of treasury **es into existence under which of the following circumstances?A. They are issued as such by a **panyB. They are issued as such by a **panyC. They are purchased as such by the exchequerD. They are purchased as such by a private or **pany29. Which of the following is NOT a source of English law?A. CustomB. EquityC. Public law30. Which of the following are owed a duty of care by auditors when preparing a company’s audit report?A. A potential investor with no current holdingB. An existing shareholder looking to increase their holdingC. A company looking to make a takeover bid for **panyD. **pany and the existing shareholders in **pany as a body31. In a potential redundancy situation, an employee may lose the right to payment if they reject an offer of alternative employment within the business.Which of the following will allow the employee to reject the employment offered and claim redundancy?A. The alternative was suitable but the employee reasonably felt that it was not of the same statusB. The alternative was suitable but the employee refused to consider itC. The alternative was suitable but the employee’s grounds for refusing to acc ept it were unreasonable32. hich TWO of the following are reasons for dismissal which must be justified as FAIR?(1) Capability or qualifications of the employee (2) Legal prohibitions relating to the employee (3) Refusal of the employee to join a trade union(4) Taking part in unofficial industrial actionA. (1) and (2)B. (1) and (3)C. (2) and (3)D. (2) and (4)33. What type of contract does an employee have?A. A contract for serviceB. A contract of serviceC. A contract for servicesD. A contract of services34. Which of the following describes a pre-contractual statement which does NOT form a term ofa contract but induces the contract?A. A conditionB. A warrantyC. A representationD. An innominate term35. Which of the following exists as a separate legal entity from its members?A. An ordinary partnershipB. A limited partnershipC. A limited liability partnership36. Which of the following must a **pany ALWAYS have?A. SharesB. Limited liabilityC. A company secretaryD. A registration certificate37. A breach of a contractual warranty enables the injured party to do which of the following?A. To sue for damages onlyB. To sue for damages or terminate the contractC. To sue for damages and terminate the contractD. To terminate the contract only38. n relation to the tort of negligence, which TWO of the following criteria are required to establish the existence of a duty of care?(1) The claimant suffered a financial loss (2) The harm suffered was reasonably foreseeable (3) A relationship of proximity existed between the parties(4) The claimant did not consent to cause the injury sufferedA. (1) and (2)B. (1) and (3)C. (2) and (3)D. (2) and (4)39. In relation to defences to the tort of negligence, which of the following is the consequence of a finding of volentinon fit injuria?A. It removes the requirement to pay damagesB. It reverses the burden of proof as to who can claim damagesC. It increases the level of damagesD. It decreases the level of damages40. Which of the following actions is open to a party who has only partly performed work under a contract?A. Quantum meruitB. Action for the priceC. DamagesD. Restitution41. Which of the following is an example of the purposive approach to statutory interpretation?A. The mischief ruleB. The literal ruleC. The golden rule42. Which is the correct minimum period of notice an employee is entitled to after five years’ service?A. One calendar monthB. Five weeksC. Ten weeksD. Five calendar months43. In relation to agency law, ‘warrant of authority’ is provided by which of the following?A. The agentB. The principalC. The third party44. Which of the following correctly applies to the burden of proof in a criminal case?A. It must be proved beyond reasonable doubtB. It must be proved on the balance of probabilitiesC. It lies with the prosecutionD. It lies with the defence45. Where a business includes a term in a contract which excludes liability for death and personal injuries through negligence, which of the following states the effect of the term?A. It is invalidB. It is invalid unless it is reasonable in the circumstances of the caseC. It is valid only if specifically brought to the attention of the other partyD. It is valid if it is clearly included in the contract termsSection B – ALL FIVE questions **pulsory and MUST be attemptedPlease write your answers to all parts of these questions on the lined pages within the Candidate Answer Booklet.1.Ann owns a shop selling prints. She placed an advertisement in the Friday edition of her local paper stating: ‘Unique opportunity to own a Bell print for £500 cash. Offer valid for one day only –tomorrow Saturday.’When Con saw the advert, he immediately posted a letter of acceptance.On Saturday, Di asked Ann if she would take a cheque for £500, but she refused to accept the cheque and told hershe could not have the print. Later that day Ann sold the print to Evi.On Monday morning Con’s letter arrived.Requir ed:In the context of the rules governing the creation of contracts:(a) Describe the precise legal nature of Ann’s advertisement; (2 marks)(b) Explain whether Con has any right of action against Ann; (2 marks)(c) Explain whether Di has any right of action against Ann. (2 marks)2.Fred is a member of Glad Ltd, a small **pany, holding 100 of its 500 shares. The other 400 shares are held by four other members.It has recently become apparent that Fred has set up a rival business to Glad Ltd and the other members have decided that he should be expelled from **pany. To that end they propose to alter the articles of association to include a new power to ‘require any member to transfer their shares for fair value to the other members upon the passing ofa resolution so to do’. Required:(a) State the procedure which Glad Ltd must follow to alter its articles of association.(2 marks)(b) Explain the effect of the requirement that any alteration to a company’s articles of association must be for the benefit of **pany as a whole. (2 marks)(c) Explain whether or not the articles of association of Glad Ltd can be altered as proposed.(2 marks)3.Three years ago Ho subscribed for shares in **panies: Ice Ltd and Jet plc. In relation to the shares in Ice Ltd,Ho was only required to pay 50 pence per £1 share when he took the shares and was assured that he would not be required to make any further payment on them to IceLtd and **pany passed a resolution to that effect.Unfortunately, Ice Ltd has gone into insolvent liquidation owing a substantial sum of money to its creditors. In relation to the shares in Jet plc, Ho was required to pay a premium of 50 pence per £1 share. The shares are currently trading at 75 pence per share.Required:(a) Describe any potential liability Ho may have with regard to the shares he holds in Ice Ltd and to whom any such liability would be owed.(2 marks)(b) Explain the meaning and purposes of a share premium account.(2 marks)(c) Explain whether Ho can gain access to the premium paid on the shares in Jet plc.(2 marks)4.Kut Ltd is a small **pany. Although there are three members of its board of directors, the actual day-to-day running of the business is left to Leo, who simply reports back to the board on the business he has carried out. Leo refers to himself as the chief executive officer of Kut Ltd, although he has never been officially appointed as such.In October 2014, Leo entered into a normal business contract on Kut Ltd’s behalf with Max. However, the other members of the board have subsequently lost confidence in Leo and have refused to pay Max, claiming that Leo did not have the necessary authority to enter into the contract with him. Required:(a) State the usual authority of individual directors to enter into binding contracts on ehalf of **pany.(2 marks)(b) Explain whether or not Kut Ltd is liable to pay Max.(4 marks)5.Nit is involved in illegal activity, from which he makes a large amount of money. He also owns a legitimate **pany and passes off his illegally gained money as profits of that business. Nit employs Owen, who is aware of the illegal source of the money, to act as the manager of the **pany, and Pat as his accountant to produce false business accounts for the taxi business.Required:In the context of the law relating to money laundering:(a)Explain the meaning of layering.(2 marks)(b) Explain whether any criminal offences relating to money laundering may have **mitted by Nit, Owen and Pat.(4 marks)。
2014年ACCA考试F4公司法与商法第十四章总汇5
2014年ACCA考试F4公司法与商法第十四章总汇5本文由高顿ACCA整理发布，转载请注明出处5 Lifting the veil of incorporationOverview5.1 A company is said to be separated from its members and/or directors by a veil of incorporation. There are a number of situations when this 'veil' will be 'lifted'.Case Law5.2 Courts lift the corporate veil to counter fraud, oppression and illegality.(a) Gilford Motor Co. v. HorneThe veil was lifted to prevent the circumvention of a restraint of trade clause.(b) Daimler v. Continental Tyre and Rubber Co.The veil was lifted to recognise the 'enemy alien character' of the shareholders and directors of a U.K. registered company.(c) Ebrahimi v Westborne GalleriesThe veil was lifted to recognise the 'partnership' relationship of the members.(d) R v Oll LtdThe veil was lifted to impose criminal liability for corporate manslaughter on the‘controlling mind’ of the company.Statute5.3 Directors can be made personally liable for the company's debts.(a) S 213 IA '86 Fraudulent Trading('carry on business with intent to defraud creditors')This is also a criminal offence.(b) S 214 IA '86 Wrongful Trading('director knew/ought to have concluded that the company would go into insolvent liquidation' ... and failed to take every reasonable step to minimise creditors' potential losses').(c) S 117 Failure to obtain a trading certificate (plcs only).(d) S 349 Signing documents which fail to disclose the correct company name.5.4 Members can also be made personally liable(a) S 213 IA 86 Fraudulent Trading(b) S 24 Sole memberPublic companies must have at least 2 members. Breach of this rule makes the remaining member jointly and severally liable with the company if(i) they are aware of the fact; and(ii) the situation exists for more than 6 months.Liability is only in relation to debts incurred after the initial 6 month period.5.5 Other examples of lifting the veil:(a) personal guarantees by members/directors(b) preparation of group accounts(c) under tax law.更多ACCA资讯请关注高顿ACCA官网：。
2014年6月ACCA F2考试真题
Fundamentals Level – Knowledge Module Management AccountingSpecimen Exam applicable from June 2014Time allowed: 2 hoursThis paper is divided into two sections:Section A – ALL 35 questions are compulsory and MUSTbe attemptedSection B – ALL THREE questions are compulsory and MUSTbe attemptedFormulae Sheet, Present Value and Annuity Tables are onpages 16, 17 and 18.Do NOT open this paper until instructed by the supervisor.This question paper must not be removed from the examination hall. The Association of Chartered Certified AccountantsSection A – ALL 35 questions are compulsory and MUST be attemptedPlease use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.Each question is worth 2 marks.1 A manufacturing company benchmarks the performance of its accounts receivable department with that of a leadingcredit card company.What type of benchmarking is the company using?A B C D Internal benchmarking Competitive benchmarking Functional benchmarking Strategic benchmarking2 3 Which of the following BEST describes target costing?ABCDSetting a cost by subtracting a desired profit margin from a competitive market price Setting a price by adding a desired profit margin to a production costSetting a cost for the use in the calculation of variancesSetting a selling price for the company to aim for in the long runInformation relating to two processes (F and G) was as follows:Process Normal loss as% of inputInput(litres)Output(litres)FG8565,00037,50058,90035,700For each process, was there an abnormal loss or an abnormal gain?Process F Process GABCDAbnormal gainAbnormal gainAbnormal lossAbnormal lossAbnormal gainAbnormal lossAbnormal gainAbnormal loss4 The following budgeted information relates to a manufacturing company for next period:Units $Production Sales 14,00012,000Fixed production costsFixed selling costs63,00012,000The normal level of activity is 14,000 units per period.Using absorption costing the profit for next period has been calculated as $36,000. What would be the profit for next period using marginal costing?A B C D $25,000 $27,000 $45,000 $47,0005 The Eastland Postal Service is government owned. The government requires it to provide a parcel delivery service toevery home and business in Eastland at a low price which is set by the government. Express Couriers Co is a privately owned parcel delivery company that also operates in Eastland. It is not subject to government regulation and most of its deliveries are to large businesses located in Eastland’s capital city. You have been asked to asses s the relative efficiency of the management of the two organisations.Which of the following factors should NOT be allowed for when comparing the ROCE of the two organisations to assess the efficiency of their management?A B C D Differences in prices charged Differences in objectives pursued Differences in workforce motivation Differences in geographic areas served6 Under which sampling method does every member of the target population has an equal chance of being in thesample?A B C D Stratified sampling Random sampling Systematic sampling Cluster sampling7 A Company manufactures and sells one product which requires 8 kg of raw material in its manufacture. The budgeteddata relating to the next period are as follows:UnitsSalesOpening inventory of finished goods Closing inventory of finished goods 19,000 4,000 3,000KgOpening inventory of raw materials Closing inventory of raw materials 50,000 53,000What is the budgeted raw material purchases for next period (in kg)?A B C D 141,000 147,000 157,000 163,000。
ACCA2014年6月份考试真题
ACCA2014年6月份考试真题(P2)更新日期：2014年11月14日来源：月亮岛教育作者：编辑组点击：484次The following information needs to be taken into account in the preparation of the group financial statements of Robby:(i) On 1 June 2010, Robby acquired 80% of the equity interests of Hail. The purchase consideration comprisedcash of $50 million. Robby has treated the investment in Hail at fair value through other comprehensive income(OCI).A dividend received from Hail on 1 January 2012 of $2 million has similarly been credited to OCI.It is Robby’s policy to measure the non-controlling interest at fair value and this was $15 million on 1 June 2010.On 1 June 2010, the fair value of the identifiable net assets of Hail were $60 million and the retained earningsof Hail were $16 million. The excess of the fair value of the net assets is due to an increase in the value ofnon-depreciable land.(ii) On 1 June 2009, Robby acquired 5% of the ordinary shares of Zinc. Robby had treated this investment at fairvalue through profit or loss in the financial statements to 31 May 2011.On 1 December 2011, Robby acquired a further 55% of the ordinary shares of Zinc and gained control of thecompanyThe fair value of the identifiable net assets at 1 December 2011 of Zinc was $26 million, and the retainedearnings were $15 million. The excess of the fair value of the net assets is due to an increase in the value ofproperty, plant and equipment (PPE), which was provisional pending receipt of the final valuations. Thesevaluations were received on 1 March 2012 and resulted in an additional increase of $3 million in the fair valueof PPE at the date of acquisition. This increase does not affect the fair value of the non-controlling interest atacquisition. PPE is to be depreciated on the straight-line basis over a remaining period of five years.(iii) Robby has a 40% share of a joint operation, a natural gas station. Assets, liabilities, revenue and costs areapportioned on the basis of shareholding.The following information relates to the joint arrangement activities:– The natural gas station cost $15 million to construct and was completed on 1 June 2011 and is to bedismantled at the end of its life of 10 years. The present value of this dismantling cost to the jointarrangement at 1 June 2011, using a discount rate of 5%, was $2 million.– In the year, gas with a direct cost of $16 million was sold for $20 million. Additionally, the joint arrangementincurred operating costs of $0·5 million during the year.Robby has only contributed and accounted for its share of the construction cost, paying $6 million. The revenueand costs are receivable and payable by the other joint operator who settles amounts outstanding with Robbyafter the year end.(iv) Robby purchased PPE for $10 million on 1 June 2009. It has an expected useful life of 20 years and isdepreciated on the straight-line method. On 31 May 2011, the PPE was revalued to $11 million. At 31 May2012, impairment indicators triggered an impairment review of the PPE. The recoverable amount of the PPE was$7·8 million. The only accounting entry posted for the year to 31 May 2012 was to account for the depreciationbased on the revalued amount as at 31 May 2011. Robby’s accounting policy is to make a transfer of the excessdepreciation arising on the revaluation of PPE.(v) Robby held a portfolio of trade receivables with a carrying amount of $4 million at 31 May 2012. At that date,the entity entered into a factoring agreement with a bank, whereby it transfers the receivables in exchange for$3·6 million in cash. Robby has agreed to reimburse the factor for any shortfall between the amount collectedand $3·6 million. Once the receivables have been collected, any amounts above $3·6 million, less interest onthis amount, will be repaid to Robby. Robby has derecognised the receivables and charged $0·4 million as a lossto profit or loss.(vi) Immediately prior to the year end, Robby sold land to a third party at a price of $16 million with an option topurchase the land back on 1 July 2012 for $16 million plus a premium of 3%. The market value of the land is$25 million on 31 May 2012 and the carrying amount was $12 million. Robby accounted for the sale,consequently eliminating the bank overdraft at 31 May 2012.Required:(a) Prepare a consolidated statement of financial position of the Robby Group at 31 May 2012 in accordancewith Hong Kong Financial Reporting Standards. (35 marks)3 [P.T.O.(b) (i) In the above scenario (information point (v)), Robby holds a portfolio of trade receivables and enters into afactoring agreement with a bank, whereby it transfers the receivables in exchange for cash. Robbyadditionally agreed to other terms with the bank as regards any collection shortfall and repayment of anymonies to Robby. Robby derecognised the receivables. This is an example of the type of complex transactionthat can arise out of normal terms of trade. The rules regarding derecognition are quite complex and areoften not understood by entities.Describe the rules of HKFRS 9 Financial Instruments relating to the derecognition of a financial assetand how these rules affect the treatment of the portfolio of trade receivables in Robby’s financialstatements. (9 marks)(ii) Discuss the legitimacy of Robby selling land just prior to the year end in order to show a better liquidityposition for the group and whether this transaction is consistent with an accountant’s responsibilities tousers of financial statements.Note: Your answer should include reference to the above scenario. (6 marks)(50 marks)4Section B – TWO questions ONLY to be attempted2 William is a public limited company and would like advice in relation to the following transactions.(a) William owned a building on which it raised finance. William sold the building for $5 million to a financecompany on 1 June 2011 when the carrying amount was $3·5 million. The same building was leased back fromthe finance company for a period of 20 years, which was felt to be equivalent to the majority of the asset’seconomic life. The lease rentals for the period are $441,000 payable annually in arrears. The interest rate implicitin the lease is 7%. The present value of the minimum lease payments is the same as the sale proceeds.William wishes to know how to account for the above transaction for the year ended 31 May 2012.(7 marks)(b) William operates a defined benefit scheme for its employees. At June 2011, the net pension liability recognisedin the statement of financial position was $18 million, excluding an unrecognised actuarial gain of $15 millionwhich William wishes to spread over the remaining working lives of the employees. The scheme was revised on1 June 2011. This resulted in the benefits being enhanced for some members of the plan and because benefitsdo not vest for these members for five years, William wishes to spread the increased cost over that period.However, part of the scheme was to be closed, without any redundancy of employees.William requires advice on how to account for the above scheme under HKAS 19 Employee Benefits includingthe presentation and measurement of the pension expense. (7 marks)(d) William acquired another entity, Chrissy, on 1 May 2012. At the time of the acquisition, Chrissy was being suedas there is an alleged mis-selling case potentially implicating the entity. The claimants are suing for damages of$10 million. William estimates that the fair value of any contingent liability is $4 million and feels that it is morelikely than not that no outflow of funds will occur.William wishes to know how to account for this potential liability in Chrissy’s entity financial statements andwhether the treatment would be the same in the consolidated financial statements.(4 marks)Required:Discuss, with suitable computations, the advice that should be given to William in accounting for the aboveevents.Note: The mark allocation is shown against each of the four events above.Professional marks will be awarded in question 2 for the quality of the discussion. (2 marks)(25 marks)5 [P.T.O.3 Ethan, a public limited company, develops, operates and sells investment properties.(a) Ethan focuses mainly on acquiring properties where it foresees growth potential, through rental income as wellas value appreciation. The acquisition of an investment property is usually realised through the acquisition of theentity, which holds the property.In Ethan’s consolidated financial statements, investment properties acquired through business combinations arerecognised at fair value, using a discounted cash flow model as approximation to fair value. There is currently anactive market for this type of property. The difference between the fair value of the investment property asdetermined under the accounting policy, and the value of the investment property for tax purposes results in adeferred tax liability.Goodwill arising on business combinations is determined using the measurement principles for the investmentproperties as outlined above. Goodwill is only considered impaired if and when the deferred tax liability is reducedbelow the amount at which it was first recognised. This reduction can be caused both by a reduction in the valueof the real estate or a change in local tax regulations. As long as the deferred tax liability is equal to, or largerthan, the prior year, no impairment is charged to goodwill. Ethan explained its accounting treatment by confirmingthat almost all of its goodwill is due to the deferred tax liability and that it is normal in the industry to accountfor goodwill in this way.Since 2008, Ethan has incurred substantial annual losses except for the year ended 31 May 2011, when it madea small profit before tax. In year ended 31 May 2011, most of the profit consisted of income recognised onrevaluation of investment properties. Ethan had announced early in its financial year ended 31 May 2012 thatit anticipated substantial growth and profit. Later in the year, however, Ethan announced that the expected profitwould not be achieved and that, instead, a substantial loss would be incurred. Ethan had a history of reportingconsiderable negative variances from its budgeted results. Ethan’s recognised deferred tax assets have beenincreasing year-on-year despite the deferred tax liabilities recognised on business combinations. Ethan’s deferredtax assets consist primarily of unused tax losses that can be carried forward which are unlikely to be offset againstanticipated future taxable profits. (11 marks)(b) Ethan wishes to apply the fair value option rules of HKFRS 9 Financial Instruments to debt issued to finance itsinvestment properties. Ethan’s argument for applying the fair value option is based upon the fact that therecognition of gains and losses on its investment properties and the related debt would otherwise be inconsistent.Ethan argued that there is a specific financial correlation between the factors, such as interest rates, that formthe basis for determining the fair value of both Ethan’s investment properties and the related debt. (7 marks)(c) Ethan has an operating subsidiary, which has in issue A and B shares, both of which have voting rights. Ethanholds 70% of the A and B shares and the remainder are held by shareholders external to the group. Thesubsidiary is obliged to pay an annual dividend of 5% on the B shares. The dividend payment is cumulative evenif the subsidiary does not have sufficient legally distributable profit at the time the payment is due.In Ethan’s consolidated statement of financial position, the B shares of the subsidiary were accounted for in thesame way as equity instruments would be, with the B shares owned by external parties reported as anon-controlling interest. (5 marks)Required:Discuss how the above transactions and events should be recorded in the consolidated financial statements ofEthan.Note: The mark allocation is shown against each of the three transactions above.Professional marks will be awarded in question 3 for the quality of the discussion. (2 marks)(25 marks)64 (a) The existing standard dealing with provisions HKAS 37, Provisions, Contingent Liabilities and Contingent Assets,has been in place for many years and is sufficiently well understood and consistently applied in most areas.Standard setters have felt it is time for a fundamental change in the underlying principles for the recognition andmeasurement of non-financial liabilities. To this end, the International Accounting Standards Board (IASB) hasissued an Exposure Draft, ‘Measurement of Liabilities in IAS 37 – Proposed amendments to IAS 37’. The HongKong Institute of Certified Public Accountants has also invited its members and other interested parties tocomment on the exposure draft.Required:(i) Discuss the existing guidance in HKAS 37 as regards the recognition and measurement of provisionsand why standard setters feel the need to replace existing guidance; (9 marks)(ii) Describe the new proposals that the IASB has outlined in the Exposure Draft.(7 marks)(b) Royan, a public limited company, extracts oil and has a present obligation to dismantle an oil platform at the endof the platform’s life, which is 10 years. Royan cannot cancel this obligation or transfer it. Royan intends to carryout the dismantling work itself and estimates the cost of the work to be $150 million in 10 years time. Thepresent value of the work is $105 million.A market exists for the dismantling of an oil platform and Royan could hire a third party contractor to carry outthe work. The entity feels that if no risk or probability adjustment were needed then the cost of the externalcontractor would be $180 million in ten years time. The present value of this cost is $129 million. If risk andprobability are taken into account, then there is a probability of 40% that the present value will be $129 millionand 60% probability that it would be $140 million, and there is a risk that the costs may increase by $5 million.Required:Describe the accounting treatment of the above events under HKAS 37 and the possible outcomes under theproposed amendments in the Exposure Draft. (7 marks)Professional marks will be awarded in question 4 for the quality of the discussion. (2 marks)(25 marks)。
2014年12月ACCA F9考试真题
Financial Management Friday 5 December 2014Time allowedReading and planning: 15 minutesWriting: 3 hoursThis paper is divided into two sections:Section A – ALL 20 questions are compulsory and MUST beattemptedSection B – ALL FIVE questions are compulsory and MUST beattemptedFormulae Sheet, Present Value and Annuity Tables are onpages 11, 12 and 13.Do NOT open this paper until instructed by the supervisor.During reading and planning time only the question paper maybe annotated. You must NOT write in your answer booklet until instructed by the supervisor.This question paper must not be removed from the examination hall.The Association of Chartered Certified AccountantsSection A – ALL 20 questions are compulsory and MUST be attemptedPlease use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.Each question is worth 2 marks.1 TKQ Co has just paid a dividend of 21 cents per share and its share price one year ago was $3·10 per share. Thetotal shareholder return for the year was 19·7%.What is the current share price?A B C D $3·50 $3·71 $3·31 $3·352 Which of the following statements is/are correct?1 2 3 Securitisation is the conversion of illiquid assets into marketable securities The reverse yield gap refers to equity yields being higher than debt yields Disintermediation arises where borrowers deal directly with lending individualsA B C D 2 only1 and 3 only2 and3 only 1, 2 and 33 Which of the following statements are correct?1 2 3 Maximising market share is an example of a financial objectiveShareholder wealth maximisation is the primary financial objective for a company listed on a stock exchange Financial objectives should be quantitative so that their achievement can be measuredA B C D 1 and 2 only1 and 3 only2 and3 only 1, 2 and 34 A company whose home currency is the dollar ($) expects to receive 500,000 pesos in six months’ time from acustomer in a foreign country. The following interest rates and exchange rates are available to the company:Spot rateSix-month forward rate 15·00 peso per $15·30 peso per $Home country4% per year3% per yearForeign country8% per year6% per yearBorrowing interest rateDeposit interest rateWorking to the nearest $100, what is the six-month dollar value of the expected receipt using a money-market hedge?A B C D $32,500 $33,700 $31,800 $31,9005 6 Which of the following statements is correct?ABCDA bonus issue can be used to raise new equity financeA share repurchase scheme can increase both earnings per share and gearingMiller and Modigliani argued that the financing decision is more important than the dividend decisionShareholders usually have the power to increase dividends at annual general meetings of a companyWhich of the following statements is correct?A Tax allowable depreciation is a relevant cash flow when evaluating borrowing to buy compared to leasing as afinancing choiceBCAsset replacement decisions require relevant cash flows to be discounted by the after-tax cost of debtIf capital is rationed, divisible investment projects can be ranked by the profitability index when determining the optimum investment scheduleD Government restrictions on bank lending are associated with soft capital rationing7 An investment project has a cost of $12,000, payable at the start of the first year of operation. The possible futurecash flows arising from the investment project have the following present values and associated probabilities:PV ofYear 1 cash flow ($)16,000PV ofYear 2 cash flow ($)20,000Probability0·15Probability0·7512,000 0·60 (2,000) 0·25 (4,000) 0·25What is the expected value of the net present value of the investment project?A B C D $11,850 $28,700 $11,100 $76,3008 9 Which of the following statements is correct?ABCDOnce purchased, currency futures have a range of close-out datesCurrency swaps can be used to hedge exchange rate risk over longer periods than the forward marketBanks will allow forward exchange contracts to lapse if they are not used by a companyCurrency options are paid for when they are exercisedA company has 7% loan notes in issue which are redeemable in seven years’ time at a 5% premium to their nominal value of $100 per loan note. The before-tax cost of debt of the company is 9% and the after-tax cost of debt of the company is 6%.What is the current market value of each loan note?ABCD$92·67$108·90$89·93$103·1410 Which of the following statements concerning working capital management are correct?1 2 3 Working capital should increase as sales increaseAn increase in the cash operating cycle will decrease profitability Overtrading is also known as under-capitalisationA B C D 1 and 2 only1 and 3 only2 and3 only 1, 2 and 311 Which of the following is LEAST likely to fall within financial management?A B C D The dividend payment to shareholders is increasedFunds are raised to finance an investment projectSurplus assets are sold offNon-executive directors are appointed to the remuneration committee12 Which of the following statements concerning profit are correct?1 2 3 Accounting profit is not the same as economic profit Profit takes account of riskAccounting profit can be manipulated by managersA B C D 1 and 3 only1 and2 only2 and3 only 1, 2 and 313 A company has annual credit sales of $27 million and related cost of sales of $15 million. The company has thefollowing targets for the next year:Trade receivables days Inventory daysTrade payables 50 days 60 days 45 daysAssume there are 360 days in the year.What is the net investment in working capital required for the next year?A B C D $8,125,000 $4,375,000 $2,875,000 $6,375,00014 An investor believes that they can make abnormal returns by studying past share price movements.In terms of capital market efficiency, to which of the following does the investor’s belief relate?A B C D Fundamental analysis Operational efficiency Technical analysisSemi-strong form efficiency15 Which of the following statements is/are correct?1 2 3 An increase in the cost of equity leads to a fall in share priceInvestors faced with increased risk will expect increased return as compensation The cost of debt is usually lower than the cost of preference sharesA B C D 2 only1 and 3 only2 and3 only 1, 2 and 316 Governments have a number of economic targets as part of their fiscal policy.Which of the following government actions relate predominantly to fiscal policy?1 2 3 4 Decreasing interest rates in order to stimulate consumer spending Reducing taxation while maintaining public spendingUsing official foreign currency reserves to buy the domestic currency Borrowing money from the capital markets and spending it on public worksA B C D 1 only1 and 32 and 4 only 2,3 and 417 The following are extracts from the statement of financial position of a company:$000 $000EquityOrdinary shares 8,000Reserves 20,000–––––––28,000Non-current liabilitiesBonds Bank loans 4,000 6,200Preference shares 2,000–––––––12,200Current liabilitiesOverdraft 1,000Trade payables 1,500–––––––2,500–––––––Total equity and liabilities 42,700–––––––The ordinary shares have a nominal value of 50 cents per share and are trading at $5·00 per share. The preference shares have a nominal value of $1·00 per share and are trading at 80 cents per share. The bonds have a nominal value of $100 and are trading at $105 per bond.What is the market value based gearing of the company, defined as prior charge capital/equity?A B C D 15·0% 13·0% 11·8% 7·3%18 Which of the following statements is correct?A B Governments can keep interest rates low by buying short-dated government bills in the money marketThe normal yield curve slopes upward to reflect increasing compensation to investors for being unable to use their cash nowC The yield on long-term loan notes is lower than the yield on short-term loan notes because long-term debt is lessrisky for a company than short-term debtD Expectations theory states that future interest rates reflect expectations of future inflation rate movements19 A company has just paid an ordinary share dividend of 32·0 cents and is expected to pay a dividend of 33·6 centsin one year’s time. The company has a cost of equity of 13%.What is the market price of the company’s shares to the nearest cent on an ex dividend basis?A B C D $3·20 $4·41 $2·59 $4·2020 Which of the following is/are usually seen as forms of market failure where regulation may be a solution?1 2 3 Imperfect competition Social costs or externalities Imperfect informationA B C D 1 only1 and2 only2 and3 only1, 2 and 3(40 marks)Section B – ALL FIVE questions are compulsory and MUST be attempted1 Flit Co is preparing a cash flow forecast for the three-month period from January to the end of March. The followingsales volumes have been forecast:December January February March AprilSales (units) 1,200 1,250 1,300 1,400 1,500Notes:1. The selling price per unit is $800 and a selling price increase of 5% will occur in February. Sales are all on onemonth’s credit.2.3. Production of goods for sale takes place one month before sales.Each unit produced requires two units of raw materials, costing $200 per unit. No raw materials inventory is held. Raw material purchases are on one months’ credit.4. Variable overheads and wages equal to $100 per unit are incurred during production, and paid in the month ofproduction.5.6.7. The opening cash balance at 1 January is expected to be $40,000.A long-term loan of $300,000 will be received at the beginning of March.A machine costing $400,000 will be purchased for cash in March.Required:(a) Calculate the cash balance at the end of each month in the three-month period. (5 marks)(2 marks)(b) Calculate the forecast current ratio at the end of the three-month period.(c) Assuming that Flit Co expects to have a short-term cash surplus during the three-month period, discusswhether this should be invested in shares listed on a large stock market. (3 marks)(10 marks)2 Recent information on the earnings per share and share price of Par Co is as follows:YearEarnings per share (cents) Year-end share price ($) 2011649·152012689·8820137010·4920146210·90Par Co currently has the following long-term capital structure:$m $mEquity financeOrdinary shares 30·0Reserves 38·4 68·4–––––Non-current liabilitiesBank loans 15·08% convertible loan notes 40·0 55·0–––––––––––Total equity and liabilities 123·4––––––The 8% loan notes are convertible into eight ordinary shares per loan note in seven years’ time. If not converted, the loan notes can be redeemed on the same future date at their nominal value of $100. Par Co has a cost of debt of 9% per year.The ordinary shares of Par Co have a nominal value of $1 per share and have been traded on a large stock exchange for many years. Listed companies similar to Par Co have been recently reported to have an average price/earnings ratio of 12 times.Required:(a) Calculate the market price of the convertible loan notes of Par Co, commenting on whether conversion islikely. (5 marks)(b) Calculate the share price of Par Co using the price/earnings ratio method and discuss the problems in usingthis method of valuing the shares of a company. (5 marks)(10 marks)3 PZK Co, whose home currency is the dollar, trades regularly with customers in a number of different countries. Thecompany expects to receive €1,200,000 in six months’ time from a foreign customer. Current exchange rates in the home country of PZK Co are as follows:Spot exchange rate:Six-month forward exchange rate: Twelve-month forward exchange rate: 4·1780–4·2080 euros per $ 4·2302–4·2606 euros per $ 4·2825–4·3132 euros per $Required:(a) Calculate the loss or gain compared to its current dollar value which PZK Co will incur by taking out a forwardexchange contract on the future euro receipt, and explain why taking out a forward exchange contract may be preferred by PZK Co to not hedging the future euro receipt. (4 marks) (b) If the interest rate in the home country of PZK Co is 4% per year, calculate the annual interest rate in theforeign customer’s country implied by the spot exchange rate and the twelve-month forward exchange rate.(2 marks)(c) Discuss whether PZK Co should avoid exchange rate risk by invoicing foreign customers in dollars.(4 marks)(10 marks)4 Uftin Co is a large company which is listed on a major stock market. The company has been evaluating an investmentproposal to manufacture Product K3J. The initial investment of $1,800,000 will be payable at the start of the first year of operation. The following draft evaluation has been prepared by a junior employee.Year 195,000252100,000253150,000264150,00027Sales (units/year)Selling price ($/unit)Variable costs ($/unit) 11 12 12 13 (Note: The above selling prices and variable costs per unit have not been inflated.)$000 2,475 (1,097) (155)$0002,605(1,260)(155)$0004,064(1,890)(155)$0004,220(2,048)(155)Sales revenueVariable costsFixed costsInterest payments (150) (150) (150) (150)––––––––––––––––––––––––Cash flow before tax 1,073 1,040 1,869 1,867 Tax allowable depreciation (450) (450) (450) (450)––––––––––––––––––––––––Taxable profit Taxation623 590 1,419 1,417(137) (130) (312) ––––––623––––––––––––––––––Net cash flow 453 1,289 1,105 Discount at 12% 0·893 0·797 0·712 0·636––––––––––––––––––––––––Present values 556 361 918 703––––––––––––––––––––––––$000Present value of cash inflows Cost of machine2,538 (1,800) ––––––NPV 738––––––The junior employee also provided the following information:1.2.3.4. Relevant fixed costs are forecast to be $150,000 per year.Sales and production volumes are the same and no finished goods inventory is held.The corporation tax rate is 22% per year and tax liabilities are payable one year in arrears.Uftin Co can claim tax allowable depreciation of 25% per year on a reducing balance basis on the initial investment.5.6. A balancing charge or allowance can be claimed at the end of the fourth year.It is expected that selling price inflation will be 4·2% per year, variable cost inflation will be 5% per year and fixed cost inflation will be 3% per year.7.8.9. The investment has no scrap value.The investment will be partly financed by a $1,500,000 loan at 10% per year. Uftin Co has a weighted average cost of capital of 12% per year.Required:(a) Prepare a revised draft evaluation of the investment proposal and comment on its financial acceptability.(11 marks)(b) Explain any TWO revisions you have made to the draft evaluation in part (a) above. (4 marks)(15 marks)5 Tinep Co is planning to raise funds for an expansion of existing business activities and in preparation for this thecompany has decided to calculate its weighted average cost of capital. Tinep Co has the following capital structure:$m $mEquityOrdinary shares 200Reserves 650––––850Non-current liabilitiesLoan notes 200––––––1,050––––––The ordinary shares of Tinep Co have a nominal value of 50 cents per share and are currently trading on the stock market on an ex dividend basis at $5·85 per share. Tinep Co has an equity beta of 1·15.The loan notes have a nominal value of $100 and are currently trading on the stock market on an ex interest basis at $103·50 per loan note. The interest on the loan notes is 6% per year before tax and they will be redeemed in six years’ time at a 6% premium to their nominal value.The risk-free rate of return is 4% per year and the equity risk premium is 6% per year. Tinep Co pays corporation tax at an annual rate of 25% per year.Required:(a) Calculate the market value weighted average cost of capital and the book value weighted average cost ofcapital of Tinep Co, and comment briefly on any difference between the two values. (9 marks)(b) Discuss the factors to be considered by Tinep Co in choosing to raise funds via a rights issue. (6 marks)(15 marks)Formulae Sheet Economic order quantity2C 0D C h=Miller –Orr Model13Returnpoint=Lowerlimit+(⋅spread) 1 3⎩ 3⋅transactioncost ⋅varianceofcashflows ⎤Spread =3⎪ ⎥4 ⎪ ⎥ ⎦interestrate The Capital Asset Pricing Model () i( ( )–R f)mE r =R f +®i E r The asset beta formula⎩ ®a =⎪⎪ ( ⎤ ⎥ ⎥ ⎩ ⎪ ⎪ ⎤⎥ ⎥ V d (1–T ) V e V e +V d (1–T ))® + ® V e +V d (1–T ))d e ( ⎪⎥ ⎪ ⎥ ⎦ ⎦The Growth Model D 0(1+g )P o =( r e –g)Gordon’s growth approximationg =br eThe weighted average cost of capital ⎩ ⎤ ⎩ ⎤V e +V V d V +V ( ) WACC =⎪ ⎥k e +⎪ ⎥k d 1–T ⎪ V ⎥ ⎪ ⎥ ⎦⎦e d e d The Fisher formula(1+i )=(1+r )(1+h )Purchasing power parity and interest rate parity S 1=S 0⋅(1+h c )(1+h b ) F 0 =S 0⋅(1+i c )(1+i b )Present Value TablePresent value of 1 i.e. (1 +r)–nWhere r = discount raten = number of periods until paymentDiscount rate (r)Periods(n) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%12345 0·9900·9800·9710·9610·9510·9800·9610·9420·9240·9060·9710·9430·9150·8880·8630·9620·9250·8890·8550·8220·9520·9070·8640·8230·7840·9430·8900·8400·7920·7470·9350·8730·8160·7630·7130·9260·8570·7940·7350·6810·9170·8420·7720·7080·6500·9090·8260·7510·6830·62112345678910 0·9420·9330·9230·9140·9050·8880·8710·8530·8370·8200·8370·8130·7890·7660·7440·7900·7600·7310·7030·6760·7460·7110·6770·6450·6140·7050·6650·6270·5920·5580·6660·6230·5820·5440·5080·6300·5830·5400·5000·4630·5960·5470·5020·4600·4220·5640·5130·4670·4240·3866789101112131415 0·8960·8870·8790·8700·8610·8040·7880·7730·7580·7430·7220·7010·6810·6610·6420·6500·6250·6010·5770·5550·5850·5570·5300·5050·4810·5270·4970·4690·4420·4170·4750·4440·4150·3880·3620·4290·3970·3680·3400·3150·3880·3560·3260·2990·2750·3500·3190·2900·2630·2391112131415(n) 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%12345 0·9010·8120·7310·6590·5930·8930·7970·7120·6360·5670·8850·7830·6930·6130·5430·8770·7690·6750·5920·5190·8700·7560·6580·5720·4970·8620·7430·6410·5520·4760·8550·7310·6240·5340·4560·8470·7180·6090·5160·4370·8400·7060·5930·4990·4190·8330·6940·5790·4820·40212345678910 0·5350·4820·4340·3910·3520·5070·4520·4040·3610·3220·4800·4250·3760·3330·2950·4560·4000·3510·3080·2700·4320·3760·3270·2840·2470·4100·3540·3050·2630·2270·3900·3330·2850·2430·2080·3700·3140·2660·2250·1910·3520·2960·2490·2090·1760·3350·2790·2330·1940·1626789101112131415 0·3170·2860·2580·2320·2090·2870·2570·2290·2050·1830·2610·2310·2040·1810·1600·2370·2080·1820·1600·1400·2150·1870·1630·1410·1230·1950·1680·1450·1250·1080·1780·1520·1300·1110·0950·1620·1370·1160·0990·0840·1480·1240·1040·0880·0740·1350·1120·0930·0780·0651112131415Annuity Table1 – (1 + r)–nPresent value of an annuity of 1 i.e. ————––rWhere r = discount raten = number of periodsDiscount rate (r)Periods(n) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%12345 0·9901·9702·9413·9024·8530·9801·9422·8843·8084·7130·9711·9132·8293·7174·5800·9621·8862·7753·6304·4520·9521·8592·7233·5464·3290·9431·8332·6733·4654·2120·9351·8082·6243·3874·1000·9261·7832·5773·3123·9930·9171·7592·5313·2403·8900·9091·7362·4873·1703·79112345678910 5·7956·7287·6528·5669·4715·6016·4727·3258·1628·9835·4176·2307·0207·7868·5305·2426·0026·7337·4358·1115·0765·7866·4637·1087·7224·9175·5826·2106·8027·3604·7675·3895·9716·5157·0244·6235·2065·7476·2476·7104·4865·0335·5355·9956·4184·3554·8685·3355·7596·1456789101112131415 10·368 9·78711·255 10·575 9·95412·134 11·348 10·635 9·98613·004 12·106 11·296 10·563 9·8999·253 8·7609·3858·3068·8639·3947·8878·3848·8539·2957·4997·9438·3588·7459·1087·1397·5367·9048·2448·5596·8057·1617·4877·7868·0616·4956·8147·1037·3677·6061112131415 13·865 12·849 11·938 11·118 10·380 9·712(n) 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%12345 0·9011·7132·4443·1023·6960·8931·6902·4023·0373·6050·8851·6682·3612·9743·5170·8771·6472·3222·9143·4330·8701·6262·2832·8553·3520·8621·6052·2462·7983·2740·8551·5852·2102·7433·1990·8471·5662·1742·6903·1270·8401·5472·1402·6393·0580·8331·5282·1062·5892·99112345678910 4·2314·7125·1465·5375·8894·1114·5644·9685·3285·6503·9984·4234·7995·1325·4263·8894·2884·6394·9465·2163·7844·1604·4874·7725·0193·6854·0394·3444·6074·8333·5893·9224·2074·4514·6593·4983·8124·0784·3034·4943·4103·7063·9544·1634·3393·3263·6053·8374·0314·1926789101112131415 6·2076·4926·7506·9827·1915·9386·1946·4246·6286·8115·6875·9186·1226·3026·4625·4535·6605·8426·0026·1425·2345·4215·5835·7245·8475·0295·1975·3425·4685·5754·8364·9885·1185·2295·3244·6564·7934·9105·0085·0924·4864·6114·7154·8024·8764·3274·4394·5334·6114·6751112131415End of Question Paper。
ACCA 历年真题f5_2012_jun_q
P a p e r F 5ALL FIVE questions are compulsory and MUST be attempted1Robber Co manufactures control panels for burglar alarms, a very profitable product. Every product comes with a one year warranty offering free repairs if any faults arise in this period.It currently produces and sells 80,000 units per annum, with production of them being restricted by the short supply of labour. Each control panel includes two main components –one key pad and one display screen. At present, Robber Co manufactures both of these components in-house. However, the company is currently considering outsourcing the production of keypads and/or display screens. A newly established company based in Burgistan is keen to secure a place in the market, and has offered to supply the keypads for the equivalent of $4·10 per unit and the display screens for the equivalent of $4·30 per unit. This price has been guaranteed for two years.The current total annual costs of producing the keypads and the display screens are:Keypads Display screensProduction80,000units80,000units$’000$’000Direct materials160116Direct labour4060Heat and power costs6488Machine costs2630Depreciation and insurance costs8496T otal annual production costs374390Notes:1.Materials costs for keypads are expected to increase by 5% in six months’ time; materials costs for display screensare only expected to increase by 2%, but with immediate effect.2.Direct labour costs are purely variable and not expected to change over the next year.3.Heat and power costs include an apportionment of the general factory overhead for heat and power as well asthe costs of heat and power directly used for the production of keypads and display screens. The general apportionment included is calculated using 50% of the direct labour cost for each component and would be incurred irrespective of whether the components are manufactured in-house or not.4.Machine costs are semi-variable; the variable element relates to set up costs, which are based upon the numberof batches made. The keypads’ machine has fixed costs of $4,000 per annum and the display screens’ machine has fixed costs of $6,000 per annum. Whilst both components are currently made in batches of 500, this would need to change, with immediate effect, to batches of 400.5.60% of depreciation and insurance costs relate to an apportionment of the general factory depreciation andinsurance costs; the remaining 40% is specific to the manufacture of keypads and display screens.Required:(a)Advise Robber Co whether it should continue to manufacture the keypads and display screens in-house orwhether it should outsource their manufacture to the supplier in Burgistan, assuming it continues to adopta policy to limit manufacture and sales to 80,000 control panels in the coming year.(8 marks)(b)Robber Co takes 0·5 labour hours to produce a keypad and 0·75 labour hours to produce a display screen.Labour hours are restricted to 100,000 hours and labour is paid at $1 per hour. Robber Co wishes to increase its supply to 100,000 control panels (i.e. 100,000 each of keypads and display screens).Advise Robber Co as to how many units of keypads and display panels they should either manufacture and/or outsource in order to minimise their costs. (7 marks)(c)Discuss the non-financial factors that Robber Co should consider when making a decision about outsourcingthe manufacture of keypads and display screens.(5 marks)(20 marks)2The Universal Health System (UHS) provides the entire healthcare service to residents in Illopia. The UHS is funded centrally through revenues from taxpayers. However, the government is not involved in the day-to-day running of the UHS, which is largely managed regionally by a number of self-governing trusts, such as the Sickham UHS T rust.The Sickham UHS T rust runs one hospital in Sickham and, like other trusts in Illopia, receives 70% of its income largely from the UHS’ ‘payments by results’ scheme, which was established two years ago. Under this scheme, the trust receives a pre-set tariff (fee income) for each service it provides. If the T rust manages to provide any of its services at a lower cost than the pre-set tariff, it is allowed to use the surplus as it wishes. Similarly, it has to bear the cost of any deficits itself. Currently, the T rust knows that a number of its services simply cannot be provided at the tariff paid and accepts that these always lead to a deficit. Similarly, other services always seem to create a surplus. This is partly because different trusts define their services and account for overheads differently. Also, it is partly due to regional differences in costs, which are not taken into account by the scheme, which operates on the basis that ‘one tariff fits all’.The remaining 30% of the T rust’s income comes from transplant and heart operations. Since these are not covered by the scheme, the payment the T rust receives is based on the actual costs it incurs in providing the operations.However, the T rust is not allowed to exceed the total budget provided for these operations in any one year.Over recent years, the T rust’s board of directors has become increasingly dissatisfied with the financial performance of the T rust and has blamed it on poor costing systems, leading to an inability to control costs. As a result, the finance director and his second in command – the financial controller – have now been replaced. The board of directors has taken this decision after complaining that ‘the T rust simply cannot sustain the big deficit between income and spending’. The new financial controller comes from a manufacturing background and is a great advocate of target costing, believing that the introduction of a target costing system at the Sickham UHS T rust is the answer to all of its problems. The new financial director is unconvinced, believing target costing to be only really suitable in manufacturing companies.Required:(a)Explain the main steps involved in developing a target price and target cost for a product in a typicalmanufacturing company.(6 marks)(b)Explain four key characteristics that distinguish services from manufacturing.(4 marks)(c)Describe how the Sickham UHS Trust is likely, in the current circumstances, to try to derive:(i) a target cost for the services that it provides under the ‘payment by results’ scheme; and(2 marks)(ii) a target cost for transplants and heart operations.(2 marks)(d)Discuss THREE of the particular difficulties that the Sickham UHS Trust may find in using target costing inits service provision.(6 marks)(20 marks)3Sauce Co manufactures and sells cartons of cooking sauces, which deteriorate over time and must be used within three months. Over the last two years, Sauce Co has experienced all kinds of problems. The financial and sales directors believe these to be a result of persistently unrealistic sales targets imposed by the managing director, who makes forecasts based on his own subjective and overly optimistic views about future sales. Whilst an incentive scheme is in place for employees, the company has not hit its targets for the last three years, so no bonuses have been paid out. The financial director has asked you to forecast the sales for the last two quarters of 2012, hoping to present these figures to the managing director in an attempt to persuade him that the basis of forecasting needs to be changed. Production volumes are also currently based on anticipated sales rather than actual orders.The following sales figures are available for the last two years. All of the figures represent actual sales except for quarter 2 of 2012, which is an estimate. The financial director is satisfied that this estimate can be relied upon.Year Quarter One Quarter Two Quarter Three Quarter Four’000 units ’000 units’000 units’000 units 20109001,10020111,2001,0001,0501,30020121,4001,150The following centred moving averages have been calculated, using a base period of four quarters:Year Quarter One Quarter Two Quarter Three Quarter Four’000 units ’000 units’000 units’000 units20111,068·751,112·51,162·51,206·2520121,243·751,287·5The average seasonal variations for 2010 have already been made available to you and are 0·908 for quarter 3 and 1·082 for quarter 4. The random component is negligible and can therefore be ignored.Required:(a)Using the information provided above, and assuming a proportional (multiplicative) model, forecast the salesof Sauce Co for the last two quarters of 2012. Calculate your seasonal adjustments to four decimal places.(10 marks)(b)Discuss the likely impact that the budgeting style and inaccurate sales forecasts have had on the staff andbusiness of Sauce Co.(10 marks)(20 marks)4Lock Co makes a single product –a lock –and uses marginal costing. The standard cost card for one unit is as follows: Standard cost card$Selling price80–––Direct materials (4 kg at $3 per kg)12Direct labour (2 hours at $10 per hour)20Variable overhead (2 hours at $2 per hour)4–––Marginal cost36–––A junior member of the accounts team produced the following variance statement for the month of May.Budget Actual Variances(1,000 units)(960 units)$$$Sales80,00076,8003,200AdvLess:Marginal costDirect materials(12,000)(11,126)874FavDirect labour(20,000)(18,240)1,760FavVariable overheads(4,000)(3,283)717Fav––––––––––––––––––Contribution44,00044,151151Fav––––––––––––––––––Lock Co used 3,648 kg of materials in the period and the labour force worked –and was paid for –1,824 hours.Until now, Lock Co has had a market share of 25%. In the month of May, however, the market faced an unexpected 10% decline in the demand for locks.Required:(a)P repare a statement which reconciles budgeted contribution to actual contribution in as much detail aspossible. Do not calculate the sales price and the labour rate variances, since both of these have a value of nil. Clearly show all other workings.(12 marks)(b)The production director at Lock Co believes that the way to persistently increase market share in the long termis to focus on quality, and is hoping to introduce a ‘T otal Quality Management’ (TQM) approach. The finance director also shares this view and has said that ‘standard costing will no longer have a place within the organisation if TQM is introduced.’Discuss the view that there is no longer a place for standard costing if TQM is introduced at Lock Co.(8 marks)(20 marks)5The Biscuits division (Division B) and the Cakes division (Division C) are two divisions of a large, manufacturing company. Whilst both divisions operate in almost identical markets, each division operates separately as an investment centre. Each month, operating statements must be prepared by each division and these are used as a basis for performance measurement for the divisions.Last month, senior management decided to recharge head office costs to the divisions. Consequently, each division is now going to be required to deduct a share of head office costs in its operating statement before arriving at ‘net profit’, which is then used to calculate return on investment (ROI). Prior to this, ROI has been calculated using controllable profit only. The company’s target ROI, however, remains unchanged at 20% per annum. For each of the last three months, Divisions B and C have maintained ROIs of 22% per annum and 23% per annum respectively, resulting in healthy bonuses being awarded to staff. The company has a cost of capital of 10%.The budgeted operating statement for the month of July is shown below:B C$’000$’000Sales revenue1,3001,500Less variable costs(700)(800)––––––––––––Contribution600700Less controllable fixed costs(134)(228)––––––––––––Controllable profit466472Less apportionment of head office costs(155)(180)––––––––––––Net profit311292––––––––––––Divisional net assets$23·2m$22·6mRequired(a)Calculate the expected annualised Return on Investment (ROI) using the new method as preferred by seniormanagement, based on the above budgeted operating statements, for each of the divisions. (2 marks)(b)The divisional managing directors are unhappy about the results produced by your calculations in (a) and haveheard that a performance measure called ‘residual income’ may provide more information.Calculate the annualised residual income (RI) for each of the divisions, based on the net profit figures for the month of July.(3 marks)(c)Discuss the expected performance of each of the two divisions, using both ROI and RI, and making anyadditional calculations deemed necessary. Conclude as to whether, in your opinion, the two divisions have performed well.(6 marks)(d)Division B has now been offered an immediate opportunity to invest in new machinery at a cost of $2·12 million.The machinery is expected to have a useful economic life of four years, after which it could be sold for $200,000.Division B’s policy is to depreciate all of its machinery on a straight-line basis over the life of the asset. The machinery would be expected to expand Division B’s production capacity, resulting in an 8·5% increase in contribution per month.Recalculate Division B’s expected annualised ROI and annualised RI, based on July’s budgeted operating statement after adjusting for the investment. State whether the managing director will be making a decision that is in the best interests of the company as a whole if ROI is used as the basis of the decision.(5 marks)(e)Explain any behavioural problems that will result if the company’s senior management insist on using solelyROI, based on net profit rather than controllable profit, to assess divisional performance and reward staff.(4 marks)(20 marks)。
ACCA 历年真题f5_2012_dec_a
Fundamentals Level – Skills Module, Paper F5Performance Management December 2012 Answers 1Hair Co(a)Weighted average contribution to sales ratio (WA C/S ratio) = total contribution/total sales revenue.Per unit:C S D$$$Selling price110160120Material 1(12)(28)(16)Material 2(8)(22)(26)Skilled labour(16)(34)(22)Unskilled labour(14)(20)(28)–––––––––Contribution 605628–––––––––Sales units20,00022,00026,000T otal sales revenue$2,200,000$3,520,000$3,120,000T otal contribution $1,200,000$1,232,000$728,000WA C/S ratio = $1,200,000 + $1,232,000 + $728,000/$2,200,000 + $3,520,000 + $3,120,000= $3,160,000/$8,840,000 = 35·75%(b)Break-even sales revenue = fixed costs/C/S ratioTherefore break-even sales revenue = $640,000/35·75% = $1,790,209·70.(c)PV chartCalculate the individual C/S ratio for each product then rank them according to the highest one first.Per unit:C S D$$$Contribution 605628Selling price110160120C/S ratio0·550·350·23Ranking123Product Revenue Cumulative Revenue Profit Cumulative Profit(x axis co-ordinate)(y axis co-ordinate)$$$$000(640,000)(640,000)Make C2,200,0002,200,0001,200,000560,000Make S3,520,0005,720,0001,232,0001,792,000Make D3,120,0008,840,000728,0002,520,000(d)From the chart above it can be seen that, if the products are sold in order of the highest ranking first, break even will take place at a point just under $1,200,000 of sales revenue. The exact figure can be worked out by taking the fixed costs of $640,000 and dividing them by Product C’s C/S ratio of 0·55, i.e. the exact BEP is $1,163,636. This is substantially earlier than the break-even point which occurs if the products are all sold in a constant mix, which is $1,790,209, as calculated in (b) above.The reason for this is obviously because the more profitable product, C, contributes more per unit to fixed costs when being sold on its own, than when a mix of products C, S and D are sold. The weighted average C/S ratio of all three products is only 35·75%, compared to C’s C/S ratio of 55%. Obviously, then, break even will occur earlier if C is sold in priority.In reality, however, the mix of sales will vary throughout the year and Hair Co can neither assume that the products are sold in a constant mix, nor that the most profitable can be sold first.2Truffle Co (a)Basic variancesStandard cost of labour per hour = $6/0·5 = $12 per hour.Labour rate variance = (actual hours paid x actual rate) – (actual hours paid x std rate)Actual hours paid x std rate = $136,800/·95 = $144,000. Therefore rate variance = $144,000 –$136,800 = $7,200 FLabour efficiency variance =(actual production in std hours – actual hours worked) x std rate[(20,500 x 0·5) – 12,000] x $12 = $21,000 A.(b)Planning and operational variancesLabour rate planning variance(Revised rate –std rate) x actual hours paid = [$12 – ($12 x 0·95)] x 12,000 = $7,200 F .Labour rate operational varianceThere is no labour rate operational variance.(Revised rate – actual rate) x actual hours paid = $11·40 –$11·40 x 12,000 = 0Most p r ofitable fi r st Co n sta n t m ix2,0004,0006,0008,00010,000–1,000–50005001,0001,5002,0002,5003,000Sales revenue $’000P r o f i t $’000CSDLabour efficiency planning variance(Standard hours for actual production –revised hours for actual production) x std rate[10,250 –(20,500 x 0·5 x 1·2)] x $12 = $24,600 A.Labour efficiency operational variance(Revised hours for actual production – actual hours for actual production) x std rate(12,300 – 12,000) x $12 = $3,600 F.(c)DiscussionWhen looking at the total variances alone, it looks like the production manager has been extremely poor at controlling his staff’s efficiency, since the labour efficiency variance is $21,000 adverse. It also looks, at a glance, like he has managed to secure labour at a lower rate.In order to assess the production manager’s performance fairly, however, only the operational variances should be taken into account. This is because planning variances reflect differences that arise because of factors that are outside the control of the production manager. The operational variance for the labour rate was $0, which means that the labour force were paid exactly what was agreed at the end of October: their reduced rate of $11·40 per hour. The manager clearly did not have to pay anyone for overtime, for example, which would have been expected to push this rate up. The rate reduction was secured by the company and was not within the control of the production manager, so he cannot take credit for the favourable rate planning variance of $7,200. The company is the source of this improvement.As regards labour efficiency, the planning and operational variances give us more information about the total efficiency variance of $21,000A. When this is broken down into its two parts, it becomes clear that the operational variance, for which the manager does have control, is actually $3,600 favourable. This is because, when the recipe is changed as it has been in November, the chocolates usually take 20% longer to make in the first month whilst the workers are getting used to handling the new ingredient mix. When this is taken into account, it can therefore be seen that workers took less than the 20% extra time that they were expected to take, hence the positive operational variance. The planning variance, on the other hand, is $24,600 adverse. This is because the standard labour time per batch was not updated in November to reflect the fact that it would take longer to produce the truffles. The manager cannot be held responsible for this.Overall, then, the manager has performed well, given the change in the recipe.3Web CoWeb Co has made three changes and introduced two incentives in an attempt to increase sales. Using the performance indicators given in the question, it is possible to assess whether these attempts have been successful.Total sales revenueThis has increased from $2·2 million to $2·75m, an increase of 25% (W1). This is a substantial increase, especially considering the fact that a $10 discount has been given to all customers spending $100 or more at any one time. However, because a number of changes and incentives have been introduced, it is not possible to assess how effective each of the individual changes/incentives has been in increasing sales revenue without considering the other performance indicators.Net profit margin (NPM)This has decreased from 25% to 16·7%. In $ terms this means that net profit was $550,000 in quarter 1 and $459,250 in quarter 2 (W2). If the 25% NPM had been maintained in quarter 2, the net profit would have been $687,500 for quarter 2. It is therefore $228,250 lower than it would have been. This is mainly because of the $200,000 paid out for advertising and the $20,000 paid to the consultant for the search engine work. The remaining $8,250 difference could be a result of the cost of the $10 discounts given to customers who spent more than $100, depending on how these are accounted for. Alternatively, it could be due to the costs of providing the Fast T rack service. More information would be required on how the discounts are accounted for (whether they are netted off sales revenue or instead included in cost of sales) and also on the cost of providing the Fast T rack service.Whilst it is not clear how long the advert is going to run for in the fashion magazine, $200,000 does seem to be a very large cost.This expense is largely responsible for the fall in NPM. This is discussed further under ‘number of visits to website’.Number of visits to websiteThese have increased dramatically from 101,589 to 141,714, an increase of 40,125 visits (39·5% W3). The reason for this isa combination of visitors coming through the fashion magazine’s website (28,201 visitors W5), with the remainder of the increasemost probably being due to the search engine consultants’ work. Both of these changes can therefore be said to have been effective in improving the number of people who at least visit Web Co’s online store. However, given that the search engine consultant only charged a fee of $20,000 compared to the $200,000 paid for magazine advertising, in relative terms, the consultant’s work provided value for money. Web Co’s sales are not really high enough to withstand a hit of $200,000 against profit, hence the fall in NPM.Number of orders/customers spending more than $100The number of orders received from customers has increased from 40,636 to 49,600, an increase of 22% (W4). This shows that, whilst most of the 25% sales revenue increase is due to a higher number of orders, 3% of it is due to orders being of a higher purchase value. This is also reflected in the fact that the number of customers spending more than $100 per visit has increasedfrom 4,650 to 6,390, an increase of 1,740 orders. So, for example, If each of these 1,740 customers spent exactly $100 rather than the $50 they might normally spend, it would easily explain the 3% increase in sales that is not due to increased order numbers. It depends partly on how the sales discounts of $10 each are accounted for. As stated above, further information is required on these.An increase in the number of orders would also be expected, given that the number of visitors to the site has increased substantially.This leads on to the next point.Conversion rate – visitor to purchaserThe conversion rate of visitors to purchasers has gone down from 40% to 35%. This is not surprising, given the advertising on the fashion magazine’s website. Readers of the magazine may well have clicked on the link out of curiosity and may come back and purchase something at a later date. It may be useful to have a breakdown of the visitor to purchaser rate, showing one statistic for visitors who have come from the online magazine and one for those who have not. This would help clarify the position.Website availabilityRather than improving after the work completed by Web Co’s IT department, the website’s availability has stayed the same. This means that the IT department’s changes to the website have not corrected the problem. Lack of availability is not good for business, although its exact impact is difficult to ascertain. It may be that visitors have been part of the way through making a purchase only to find that the website then becomes unavailable. More information would need to be available about aborted purchases, for example, before any further conclusions could be drawn.Subscribers to online newsletterThese have increased by a massive 159%. It is not clear what impact this has had on the business as we do not know whether the level of repeat customers has increased. This information is needed. Surprisingly, it seems that there has not been an increased cost associated with providing Fast T rack delivery, as the whole fall in net profit has been accounted for, so one can only assume that Web Co managed to offer this service without incurring any additional cost itself.ConclusionWith the exception of the work carried out to make the system more available, all of the other measures seem to have increased sales or, in the case of Incentive 1, increased subscribers. More information is needed in relation to a couple of areas, as noted above. The business has therefore been responsive to changes made and incentives implemented but the cost of the advertising was so high that, overall, profits have declined substantially. This expenditure seems too high in relation to the corresponding increase in sales volumes.Workings1.Increase in sales revenue $2·75m –$2·2m/$2·2m = 25% increase.2. NPM: 25% x $2·2m = $550,000 profit in quarter 1. 16·7% x $2·75m = $459,250 profit in quarter 2.3.No. of visits to website: increase = 141,714 –101,589/101,589 = 39·5%.4.Increase in orders = 49,600 –40,636/40,636 = 22%.5.Customers accessing website through magazine line = 141,714 x 19·9% = 28,201.6.Increase in subscribers to newsletter = 11,900 –4,600/4,600 = 159%.4Designit(a)ExplanationThe rolling budget outlined for Designit would be a budget covering a 12-month period and would be updated monthly.However, instead of the 12-month period remaining static, it would always roll forward by one month. This means that, as soon as one month has elapsed, a budget is prepared for the corresponding month one year later. For example, Designit would begin by preparing a budget for the 12 months from 1 December 2012 to 30 November 2013, to correspond with its year end. Then, at the end of December 2012, a budget would be prepared for the month December 2013, so that the unexpired period covered by the budget is always 12 months.When the budget is initially prepared for the year ending 30 November 2013, the first month is prepared in detail, with much less detail being given to later months, where there is a greater uncertainty about the future. Then, when this first month has elapsed and the budget for the month of December 2013 is prepared, it is also necessary to revisit and revise the budget for January 2013, which will now be done in more detail.Note:This answer gives more level of detail than would be required to gain full marks.(b)ProblemsDesignit only has one part-qualified accountant. H e is already overworked and probably has neither the time nor the experience to prepare rolling budgets every month. One would only expect to see monthly rolling budgets of this nature in businesses which face rapid change. There is no evidence that this is the case for Designit. If it did decide to introduce rolling budgets, it would probably be sufficient if they were updated on a quarterly rather than a monthly basis. If this monthly rolling budget is going to be introduced, it is going to require a lot of input from many of the staff, meaning that they will have less time to dedicate to other things.The sales managers may react badly to the new budgeting and incentive system. They are used to having been set targets that are easily achievable. With the new system, they will have to work hard all year round. They are also likely to become frustrated with the fact that they do not know the target for the whole year in advance. Once they have hit their target for themonth, they may then also be tempted to hold back further work and let it run into the next month, so that they increase the chances of meeting next month’s target. This would not be good for the business.(c)Alternative incentive schemeThe issue with the current bonus scheme is that the reward system is stepped, rather than being a percentage of sales. The first $1·5 million fee income target is too easy to reach and the second $1·5 million target is too hard to reach. Therefore, managers are not motivated to earn additional fees once the initial $1·5 million target has been reached.A series of constantly rising bonus rates ranging over a narrower rate of sales could be used. For example, every $500,000of fee income could be rewarded with an additional bonus equivalent to 5% of salary. Alternatively, the bonus could be replaced by commission, giving the managers a reward as a percentage of the fee income rather than a percentage of salary.Currently, the company is paying out $30,000 in bonus to each of its managers each year. This is 2% of $1·5 million.Therefore, the bonus could be that each manager earns 2% commission on all sales.(d)Using spreadsheetsIf spreadsheets are used for budgeting, the part-qualified accountant could be rekeying large amounts of data taken from the company’s systems. It would be very easy for him to make a mistake when he is entering his data, especially without someone else to check his work.Similarly, if there is any error in any of the formulae, all the numbers in the budget will be wrong. Whilst this risk already exists because fixed budgets are being prepared on spreadsheets, the rolling budgets will be far more complex, which increases the risk of error in the design of the model or any of the formulae.A model can become easily corrupted simply by putting a number in the wrong cell. The accountant is unlikely to spot thisdue to his lack of experience and the time pressure on him.When spreadsheets are used, there is no audit trail that can be followed in order to check the numbers.5Wash Co(a)Transfer price using machine hoursT otal overhead costs = $877,620T otal machine hours = (3,200 x 2) + (5,450) x 1 = 11,850Overhead absorption rate = $877,620/11,850 = $74·06Overhead cost for S = 2 x $74·06 = $148·12 and for R = 1 x $74·06 = $74·06.Product S Product R$$Materials cost11795Labour cost (at $12 per hour)69Overhead costs148·1274·06––––––––––––T otal cost271·12178·0610% mark-up27·11 17·81––––––––––––T ransfer price using machine hours298·23195·87––––––––––––(b)Transfer price using ABCMachine set up costs:driver = number of production runs.30 + 12 = 42.Therefore cost per set up = $306,435/42 = $7,296·07Machine maintenance costs:driver = machine hours: 11,850 (S= 6,400; R=5,450)$415,105/11,850 = $35·03Ordering costs:driver = number of purchase orders82 + 64 = 146.Therefore cost per order = $11,680/146 = $80Delivery costs:driver = number of deliveries.64 + 80 = 144.Therefore cost per delivery = $144,400/144 = $1,002·78Allocation of overheads to each product:Product S Product R Total$$$ Machine set-up costs218,88287,553306,435Machine maintenance costs224,192190,913415,106Ordering costs6,5605,12011,680Delivery costs64,178 80,222144,400––––––––––––––––––––––––T otal overheads allocated513,812363,808877,620––––––––––––––––––––––––Number of units produced3,2005,4508,650$$Overhead cost per unit160·5766·75T ransfer price per unit:Materials cost11795Labour cost69Overhead costs160·5766·75––––––––––––––T otal cost283·57170·75Add10% mark up28·3617·08––––––––––––––T ransfer price under ABC311·93187·83––––––––––––––(c)(i)ABC monthly profitUsing ABC transfer price from part (b):Assembly division Product S Product R TotalProduction and sales3,2005,450$$10% mark up28·3617·08––––––––––––––––––––Profit90,75293,086183,838––––––––––––––––––––––––––––Retail division Product S Product R TotalProduction and sales3,2005,450$$Selling price320260Cost price(311·93)(187·83)–––––––––––––––––––––Profit per unit8·0772·17–––––––––––––––––––––T otal profit25,824393,327419,151–––––––––––––––––––––––––––––(ii)DiscussionFrom the various profit figures for the three bases of allocating overheads, various observations can be made.–There is obviously very little difference between the TOTAL profits of each division whichever method is used, except for differences arising from rounding. In each case, the total profit made by the assembly division isapproximately $183,000 and $419,000 for the retail division. It is the reallocation of profits from R to S or S toR that is the important factor in this situation, given that the retail division wants to reduce prices but increase salesvolumes for R.–As regards the assembly division, when labour hours are used to allocate overheads, there is a big difference between the profits that each of the two products makes. When machine hours or ABC are used, this differencebecomes much smaller.–As regards the retail division, when labour hours are used, product S generates 76% of the profit. When this method of allocation is then changed so that either machine hours are used or ABC is used, the main share of theprofit then moves to product R. In the case of ABC, the profit moves so much to R that S only generates a profitper unit of $8·07 for the retail division, which is very low for a selling price of $320.–From the assembly division manager’s point of view, any change that results in increased sales of either R or S to the retail division would be a good thing for the assembly division, given that both products are profitable. However,the assembly division’s manager would probably oppose the implementation of ABC to achieve this end resultbecause firstly, it is complex and secondly, it is unnecessary here. The aim of this exercise is to set more accuratetransfer prices for R and S, which should mean a reduction in R’s transfer price and an increase in S’s, accordingto the information given. This would then have the effect of enabling the retail division to lower its price for R andincrease sales volumes. This goal is achieved simply by changing the basis of overhead absorption from labourhours to machine hours, without the need for activity based costing.–The retail manager’s view is likely to be exactly the same. If the basis of absorption is changed so that a lower transfer price is charged, the retail division could potentially reduce their selling price for R, provided that the increased sales volumes more than make up for the reduced margin. There is no need to get into the complexities of ABC when the results it produces are not that different.Fundamentals Level – Skills Module, Paper F5Performance Management December 2012Marks1Hair Co(a)Weighted average C/S ratioIndividual contributions3T otal sales revenue1T otal contribution1Ratio1–––6–––(b)Break-even revenue2–––(c)PV chartIndividual CS ratios1·5Ranking1Workings for chart2Chart:Labelling 0·5Plotting each of six points4–––9–––(d)DiscussionGeneral comments re assumptions of CVP (max. 2 marks)1Each valid point re BEP1–––3–––Total20––––––2Truffle Co(a)Rate and efficiency variancesRate variance2Efficiency variance2–––4–––(b)Planning and operational variancesLabour rate planning variance2Labour rate operational variance2Labour efficiency planning variance2Labour efficiency operational variance2–––8–––(c)DiscussionOnly operational variances controllable1No labour rate operating variance 1Planning variance down to company, not manager2Labour efficiency total variance looks bad2Manager has performed well as regards efficiency2Standard for labour time was to blame2Conclusion2–––Maximum marks8–––Total20––––––Marks 3Web CoCalculations4 Missing info3 Discussion and further analysis (2–3 marks per point)18 Conclusion2–––Total20––––––4Designit(a)ExplanationUpdated after one month elapsed1 Always 12 months1 Example given1 First month in detail1 Later month less detail1 Need to revisit earlier months1–––Maximum4–––(b)ProblemsMore time1 Lack of experience1 T oo regular2 Managers’ resistance2 Work harder1 Holding back work2–––Maximum6–––(c)Simpler incentive schemeCurrent target too easy1 Second target too hard1 Other valid point re current scheme1 New scheme outlined3–––6–––(d)Using spreadsheetsErrors entering data1 Rolling budgets more complex1 Formulae may be wrong1 Corruption of model1 No audit trail1–––Maximum4–––Total20––––––Marks 5Wash Co(a)T ransfer price using machine hoursCalculating OAR1 New TP for S1 New TP for R1–––3–––(b)T ransfer price using ABCIdentify cost drivers1 Cost driver rates2 T otal overheads allocated2 Overhead cost per unit1 T otal cost per unit1 T ransfer price per unit1–––8–––(c)ABC profit and discussion(i)Profit calculation3–––(ii)Each valid comment 2–––Maximum marks6–––Total20––––––21。
ACCA 历年真题F5_2012_jun_a
Fundamentals Level –Skills Module, Paper F5Performance Management June 2012 Answers 1(a)Keypads Display screens Variable costs$$Materials ($160k x 6/12) + ($160k x 1·05 x 6/12)164,000($116k x 1·02)118,320Direct labour40,00060,000Machine set-up costs($26k –$4k) x 500/40027,500($30k –$6k) x 500/40030,000––––––––––––––––231,500208,320 Attributable fixed costsHeat and power ($64k –$20k)/($88k –$30k)44,00058,000Fixed machine costs4,0006,000Depreciation and insurance ($84/$96k x 40%)33,60038,400––––––––––––––––81,600102,400––––––––––––––––T otal incremental costs of making in-house313,100310,720––––––––––––––––––––––––––––––––Cost of buying (80,000 x $4·10/$4·30)328,000344,000––––––––––––––––T otal saving from making14,90033,280––––––––––––––––Robber Co should therefore make all of the keypads and display screens in-house(Note: It has been assumed that the fixed set-up costs only arise if production takes place.)(Alternative method)Relevant costs Keypads Display screens$$Direct materials($160,000/2) + $160,000/2 x 1·05164,000$116,000 x 1·02118,320Direct labour 40,00060,000Heat and power$64,000 –(50% x $40,000)44,000$88,000 –(50% x $60,000)58,000Machine set up costs:Avoidable fixed costs4,0006,000Activity related costs (w1)27,50030,000Avoidable depreciation and insurance costs:40% x $84,000/$96,00033,60038,400––––––––––––––––T otal relevant manufacturing costs313,100310,720––––––––––––––––Relevant cost per unit:3·913753·884Cost per unit of buying in4·14·3––––––––––––––––Incremental cost of buying in0·186250·416––––––––––––––––As each of the components is cheaper to make in-house than to buy in, the company should continue to manufacture keypads and display screens in-house.Working 1Current no. of batches produced = 80,000/500 = 160.New no. of batches produced = 80,000/400 = 200.Current cost per batch for keypads = ($26,000 –$4,000)/160 = $137·5.Therefore new activity related batch cost = 200 x $137·5 = $27,500.Current cost per batch for display screens = ($30,000 –$6,000)/160 = $150.Therefore new activity related batch cost = 200 x $150 = $30,000.(b)The attributable fixed costs remain unaltered irrespective of the level of production of keypads and display screens, becauseas soon as one unit of either is made, the costs rise. We know that we will make at least one unit of each component as both are cheaper to make than buy. Therefore they are an irrelevant common cost.Keypads Display screens$$ Buy4·14·3Variable cost of making ($231,500/80,000)2·89($208,320/80,000)2·6–––––––––Saving from making per unit1·211·7–––––––––Labour hour per unit0·50·75–––––––––Saving from making per unit of limiting factor2·422·27––––––––––––––––––Priority of making12T otal labour hours available = 100,000.Make maximum keypads, i.e. 100,000, using 50,000 labour hours (100,000 x 0·5 hours)Make 50,000/0·75 display screens, i.e. 66,666 display screens.Therefore buy in 33,334 display screens (100,000 –66,666).Note 1: It is equally as acceptable to have treated the heat and power costs as variable and include them in the above. It will not have changed the outcome and is an entirely acceptable interpretation of the scenario.Note 2: If a production run cannot be stopped part way through, then the company would only be able to make 66,400 and would have to buy 33,600, since production takes place in batches of 400 units.(c)Non-financial factors–The company offering to supply the keypads and display screens is a new company. This would make it extremely risky to rely on it for continuity of supplies. Many new businesses go out of business within the first year of being in businessand, without these two crucial components, Robber Co would be unable to meet demand for sales of control panels.Robber Co would need to consider whether there are any other potential suppliers of the components. This would beuseful as both a price comparison now and also to establish the level of dependency that would be committed to if thisnew supplier is used. If the supplier goes out of business, will any other company be able to step in? If so, at what cost?–The supplier has only agreed to these prices for the first two years. After this, it could put up its prices dramatically. By this stage, Robber Co would probably be unable to begin easily making its components in house again, as it wouldprobably have sold off its machinery and committed to larger sales of control panels.–The quality of the components could not be guaranteed. If they turn out to be poor quality, this will give rise to problems in the control panels, leading to future loss of sales and high repair costs under warranties for Robber Co. The fact thatthe supplier is based overseas increases the risk of quality and continuity of supply, since it has even less control ofthese than it would if it was a UK supplier.–Robber Co would need to establish how reliable the supplier is with meeting promises for delivery times. This kind of information may be difficult to establish because of the fact that the supplier is a new company. Late delivery could havea serious impact on Robber Co’s production and delivery schedule.2(a)Deriving a target price and cost in a manufacturing companyStep 1:A product is developed that is perceived to be needed by customers and therefore will attract adequate sales volumes.Step 2:A target price is then set based on the customers’ perceived value of the product. This will therefore be a market based price.Step 3:The required target operating profit per unit is then calculated. This may be based on either return on sales or return on investment.Step 4:The target cost is derived by subtracting the target profit from the target price.Step 5:I f there is a cost gap, attempts will be made to close the gap. T echniques such as value engineering may be performed, which looks at every aspect of the value chain business functions, with an objective of reducing costs while satisfying customer needs.Step 6:Negotiation with customers may take place before deciding whether to go ahead with the project.(b)Four characteristics of services–Spontaneity:unlike goods, a service is consumed at the exact same time as it is made available. No service exists until it is being experienced by the consumer.–Heterogeneity/variability:services involve people and, because people are all different, the service received may vary depending on which person performs it. Standardisation is expected by the customer but it is difficult to maintain.–Intangibility:unlike goods, services cannot be physically touched.–Perishability:unused capacity cannot be stored for future use.(Al so acceptabl e characteristics are that ‘No transfer of ownership takes pl ace when a service is provided’ and ‘service industries rely heavily on their staff, who often have face-to-face contact with the customer, and represent the organisation’s brand’.)(c)Deriving target costs(i)For services under the ‘payment by results’ schemeThe obvious target price is the pre-set tariff that is paid to the trust for each service. This is known with certainty andsince the trust is a not for profit organisation, there may not be any need to deduct any profit margin from the tariff.Problems may arise because of the fact that it is already known that costs sometimes exceed the pre-set tariff. Theseissues are discussed in (d).(ii)For transplant and heart operationsFor these operations, the trust is paid on the basis of its actual costs incurred. However, since the trust only has arestricted budget for such services, it is still important that it keeps costs under control. The target cost could be basedon the average cost of these services when performed in the past, or the minimum cost that it has managed to providesuch services on before, in order to encourage cost savings. It is important that quality is not affected, however.Note: All reasonable suggestions would be acceptable.(d)Difficulties for the Sickham UHS Trust in using target costingThe main difficulties for the trust are as follows:It is difficult to find a precise definition for some of the servicesIn order for target costing to be useful, it is necessary to define the service being provided. Whilst the introduction of the pre-set tariff will make this more easy for some services, as this definition can be used, for other services not covered by the tariff, definition could be difficult.It is difficult to decide on the correct target cost for servicesFor the pre-set tariff services, the obvious target cost would be the pre-set tariff. However, bearing in mind that the T rust knows that some services can be provided at less than this and some services cannot be provided at this price at all, one has to question whether it is right to use this as the target cost. A target cost which is unachievable could be demotivational for staff and one which is easily met will not provide an incentive to keep costs down.As regards the other operations, the target can be set at a level which is both achievable but feasible, so this should result in less of an issue.It would be difficult to use target costing for new servicesThe private sector initially developed the use of target costing in the service sector with the intention that it should only be used for new services rather than existing ones. Considering the work that a hospital performs particularly, it would be difficult to establish target costs when there is no comparative data available, unless other hospitals have already provided services and the information can be obtained from them.The costing systems at the Sickham UHS Trust are poorIf costs are to be analysed in depth, the analysis must be based on accurate and timely costing systems, which do not appear to currently exist at the Sickham UHS T rust. A large part of the hospitals’ costs for services are going to be overhead costs and these need to be allocated to services on a consistent basis. This is not currently happening.Note: Only three difficulties were required.3(a)Quarter Actual volume Centred moving Seasonal percentageof sales average’000 units’000 units2010Q3900Q41,1002011Q11,2001068·751·1228Q21,0001112·500·8989Q31,0501162·500·9032Q41,3001206·251·07772012Q11,4001243·751·1256Q21,1501287·500·8932The average seasonal variations can now be calculated to see whether any adjustment to the percentages is required, since they must be 4·0 in total.$44 ($80 –$36)Material price (SP –AP) x AQ= ($3 –$3·05) x 3,648$182AMaterial usage (SQAP –AQ) x SP(3,840 –3,648) x $3$576FLabour efficiency (SHAP –AH) x SR(1,920 –1,824) x $10$960FVariable overhead efficiency (SHAP –AH) x SR(1,920 –1,824) x $2$192FVariable overhead expenditure(AHSR –actual cost) = $3,648 –$3,283$365F–––––T otal$151F–––––Reconciliation Statement$$Budgeted sales revenue80,000Budgeted standard variable cost(36,000)––––––––Budgeted contribution44,000Sales contribution variances–market share2,640–market size(4,400)(1,760)––––––––––––––––42,240Variable cost variancesMaterials–price(182)–usage576394––––––––Labour efficiency960Variable overhead–efficiency192–expenditure365557––––––––––––––––Actual contribution44,151––––––––––––––––(b)TQM and standard costing–TQM relies on a culture of continuous improvement within an organisation. For this to succeed, the focus must be on quality, not quantity. The cost of failing to achieve the desired level of quality must be measured in terms of internal andexternal failure costs.–T raditional variance analysis focuses on quantity rather than quality. This could mean that, for example, lower grade labour is used in an attempt to reduce costs. This would be totally at odds with a TQM culture, which is the basis ofthe problem of the two systems running side by side.– A traditional standard system allocates responsibility for variances to the different departmental managers. When a TQM system is adopted, all employees’ roles in ensuring quality are highlighted and everyone is seen as equally important inthe quality assurance process. This difference would make it difficult for the two systems to co-exist.–T raditional standard costing systems usually make allowances for waste. This would be totally contrary to the TQM philosophy, which aims to eliminate all waste.–Continuous improvement makes the standard cost system less relevant due to regular small changes to the process.It would seem to be the case that the two systems would struggle to co-exist at Lock Co.5(a)ROIReturn on investment= net profit/net assetsDivision B$311,000 x 12/$23,200,000 = 16·09%Division C$292,000 x 12/$22,600,000 = 15·5%(b)Residual incomeB C$’000$’000Net profit3,7323,504Less:imputed interest charge$22·6 x 10%(2,260)$23·2m x 10%(2,320)––––––––––––Residual income1,4121,244––––––––––––(c)Performance of the two divisionsROIDivisions B and C have ROIs of 16·09% and 15·5% respectively, compared to the target of 20%. This suggests that the divisions have not performed well, but the reason for this is that now, uncontrollable head office costs are being taken into effect before calculating the ROI. The target ROI has not been reduced to reflect the change in the method being used to calculate it. Using the old method, ROI would have been as follows:B: ($311,000 + $155,000) x 12/$23·2m = 24·1%C: ($292,000 + $180,000) x 12/$22·6m = 25·06%From this it can be seen that both divisions have actually improved their performance, rather than it having become worse.RIFrom the residual income figures, it can clearly be seen that both Division B and C have performed well, with healthy RI figures of $1·4m and $1·2m respectively, even when using net profit rather than controllable profit as bases for the calculations. The cost of capital of the company is significantly lower than the target return on investment that the company seeks, making the residual income figure show a more positive position.(d)Division B’s ROI with investmentDepreciation = 2,120,000 –200,000/48 months = $40,000 per month.Net profit for July = 311k + ($600k x 8·5%) –$40k = $322kAnnualised net profit: $322k x 12 = $3,864k.Opening net assets after investment = $23,200k + $2,120 = $25,320k.ROI = $3,864k/25,320k = 15·26%Therefore, Division B will not proceed with the investment, since it will cause a decrease in its ROI.If RI is calculated with the investment, the result is as follows:B$’0003,864Less:imputed interest charge$25·32m at 10%(2,532)––––––Residual income1,332––––––This calculation shows that, if the investment is undertaken, RI is actually lower than without the investment. So, if either ROI or RI is considered by Division B’s manager when deciding whether to undertake the investment, the investment will not be undertaken. This decision will be in the best interests of the company as a whole, since the RI of the investment alone is actually negative ($132k –$212k = $(80k)).(e)Behavioural issuesThe staff in both divisions have been used to meeting targets and getting rewarded appropriately. Suddenly, they will find that even though in reality divisional performance has improved, neither division is meeting its ROI target. This will purely be asa result of the inclusion of the head office costs. The whole basis of being assessed on uncontrollable apportioned costs isquestionable in the first place. However, if it is going to be done this way, at the least the target ROI must be revised.Staff are likely to become frustrated with a new system which is inherently unfair. This could give rise to staff organising themselves together in order to oppose the system. At the least, they are likely to become quickly demotivated, working slower than possible and perhaps withdrawing things like voluntary overtime. The cost to the company as a whole is likely to be high and the situation needs to be resolved as quickly as possible.Fundamentals Level –Skills Module, Paper F5Performance Management June 2012 Marking SchemeMarks1(a)Incremental cost of buying inDirect materials1Direct labour 0·5Heat and power1Set-up costs3Depreciation and insurance1T otal cost of making/cost per unit of making0·5Conclusion1–––8–––(Method 2)Direct materials1Direct labour 0·5Heat and power 1Avoidable fixed costs1Activity related costs (w1)2Avoidable depreciation and insurance1T otal relevant cost of manufacturing/cost per unit0·5Conclusion 1–––8–––(b)If 100,000 control panels madeVariable cost of making per unit1Saving from making1Saving per labour hour1Ranking1Make 100,000 keypads1Make 66,666 display screens1Buy 33,334 display screens1–––7–––(c)Non-financial factorsPer factor 1 or 2–––Maximum5–––Total marks 20––––––Marks 2(a)StepsDevelop product1 Set target price1 Set profit margin1 Set target cost1 Close gap1 Value engineering1 Negotiate1–––Maximum6–––(b)CharacteristicsSpontaneity1 Heterogeneity1 Intangibility1 Perishability1 Other1–––Maximum marks4–––(c)Deriving target costs(i)Scheme target costs2–––(ii)Other services’ target costs2–––(d)DifficultiesEach difficulty explained2–––6–––Total marks 20––––––3(a)Predicting sales volumesSeasonal percentages3 Average seasonal variations2 Average trend of centred moving average1 Forecast moving average for Q31 Adjusted for seasonal variation1 Forecast moving average for Q41 Adjusted for seasonal variation1–––10–––(b)Likely impactPer point discussed2–––10–––Total marks 20––––––Marks 4(a)Reconciliation statementVariance calculationsMarket share1·5 Market size1·5 Material price1 Material usage1 Labour efficiency 1 Variable overhead efficiency1 Variable overhead expenditure1 Reconciliation statement4–––12–––(b)TQM and standard costingPer valid discussion point2 Conclusion1–––Maximum marks8–––Total marks 20––––––5(a)ROIROI for B1 ROI for C1–––2–––(b)RI calculationsRI for B1·5 RI for C1·5–––3–––(c)DiscussionROI discussion2 RI discussion2 Extra ROI calculation under old method1 Valid conclusion drawn1–––Maximum marks6–––(d)ROI/RI after investmentROI calculation2 RI calculation1 Comments and conclusion2–––5–––(e)Behavioural issuesROI of investmentPer valid point 1–––4–––Total marks 20––––––。
干货分享 ACCA F5的5大历史真题详解
干货分享 | ACCA F5的5大历史真题详解ACCA F5 全球统考将近, 楷博财经资深讲师将从F5中的重点通过历史真题加以解析，希望对同学们有所帮助。
Example 1: Gadget Co (DEC 2010)The Gadget Co produces three products,A, B and C, all made from the same mat erial. Until now, it has used traditionalabsorption costing to allocate overheads t o its products. The company is nowconsidering an activity based costing system i n the hope that it will improveprofitability. Information for the three products for the last year is asfollows:The price for raw materials remainedconstant throughout the year at $1.2 per kg.Similarly, the direct labor costfor the whole workforce was $14.8 per hour. The a nnual overhead costs:(a) Calculatethe full cost per unit for products A, B and C under traditional absor ptioncosting,using direct labor hours as the basis for apportionment. (5'')(b)Calculate the full cost per unit of each product using activity based costing.(9 ' ')这种题型，有很大的概率出现. 需要注意的地方:1. ABC 和 AC 目的一致 (Howto apportion total overheads into cost unit), 但方式不同;2. ABC方法明显要繁琐一些, 但是它更加适用于Overhead costs 占总成本比例高的环境;3. 上题有short cut 方式，以此解题快一点。
ACCA F5考试真题答案
AnswersFundamentals Level – Skills Module, Paper F5Performance Management December 2014 Answers Section A1ADivision A: Profit = $14·4m x 30% = $4·32mImputed interest charge = $32·6m x 10% = $3·26mResidual income = $1·06mDivision B: Profit = 8·8m x 24% = $2·112mImputed interest charge = $22·2m x 10% = $2·22mResidual income = $(0·108)m2 3 4 5DAll costs are included when using life cycle costing.AThis is the definition of a basic standard.BThe first statement is describing management control, not strategic planning.CNumber of units required to make target profit = fixed costs + target profit/contribution per unit of P1. Fixed costs = ($1·2 x 10,000) + ($1 x 12,500) – $2,500 = $22,000.Contribution per unit of P = $3·20 + $1·20 = $4·40.($22,000 + $60,000)/$4·40 = 18,636 units.6AProduct A B C DSelling price per unitRaw material costDirect labour cost at $11 per hour Variable overhead cost Contribution per unit $160$24$66$24$214$56$88$18$100$22$33$24$140$40$22$18 $46$52$21$60––––––––––––––––Direct labour hours per unit Contribution per labour hour Rank6$7·6728$6·5043$72$3013Normal monthly hours (total units x hours per unit)1,8001,000720800 If the strike goes ahead, only 2,160 labour hours will be available.Therefore make all of D, then 1,360 hours’ worth of A (2,160 – 800 hrs).7 8B460 – 400 = 60 clients$40,000 – $36,880 = $3,120VC per unit = $3,120/60 = $52Therefore FC = $40,000 – (460 x $52) = $16,080BIncrease in variable costs from buying in (2,200 units x $40 ($140 – $100)) = $88,000 Less the specific fixed costs saved if A is shut down = ($10,000)Decrease in profit = $78,000Only the first statement is correct. Traditional absorption costing tends to over-allocate costs to high volume products, not under-allocate them.10 11BBy definition, a shadow price is the amount by which contribution will increase if an extra kg of material becomes available. 20 x $2·80 = $56.CNeither statement is correct. Responsibility is not assigned solely to senior managers as, for example, in a TQM environment quality is everybody’s responsibility. In addition, standard costing can be difficult to apply in dynamic situations.12 13AThe second statement is talking about flow cost accounting, not input/output analysis.DTarget 1 is a financial target and so assesses economy factors. Target 2 is measuring the rate of work handled by staff which is an efficiency measure. Target 3 is assessing output, so is a measure of effectiveness.14 15BIn comparison to participative budgeting, an advantage of non-participative budgeting is that it should be less time consuming, as less collaboration will be required in order to produce the budgets.CThe target costing process always begins with the target selling price being set. The required profit is then determined and deducted from the target selling price to estimate the target cost. The target cost is then compared to the estimated current cost and the cost gap is then calculated.16 17AThis is a description of an incremental budget.ANew profit figures before salary paid:Good manager: $180,000 x 1·3 = $234,000Average manager: $180,000 x 1·2 = $216,000Poor: $180,000 x 1·1 = $198,000EV of profits = (0·35 x $234,000) + (0·45 x $216,000) + (0·2 x $198,000) = $81,900 + $97,200 + $39,600 = $218,700 Deduct salary cost and EV with manager = $178,700Therefore do not employ manager as profits will fall by $1,300.18BSet-up costs per production run = $140,000/28 = $5,000Cost per inspection = $80,000/8 = $10,000Other overhead costs per labour hour = $96,000/48,000 = $2 Overheads costs of product D:$Set-up costs (15 x $5,000) Inspection costs (3 x $10,000) Other overheads (40,000 x $2)75,000 30,000 80,000––––––––185,00020This is an example of feedforward control as the manager is using a forecast to assist in making a future decision.AIf demand is inelastic or the product life cycle is short, a price skimming approach would be more appropriate.1 Chair Co(a) Learning curve formula = y = ax bCumulative average time per unit for 8 units: Y = 12 x 8–·415= 5·0628948 hours.Therefore cumulative total time for 8 units = 40·503158 hours. Cumulative average time per unit for 7 units: Y = 12 x 7–·415= 5·3513771 hours.Therefore cumulative total time for 7 units = 37·45964 hours.Therefore incremental time for 8th unit = 40·503158 hours – 37·45964 hours = 3·043518 hours. Total labour cost for 8th unit =3·043518 x $15 = $45·65277 Material and overheads cost per unit = $230 Therefore total cost per unit = $275·65277 Therefore price per unit = $413·47915 (b) (i)Actual learning rate Cumulative number of seats produced 1 2 4 8Cumulative totalCumulative average hours per unit 12·5 12·5 x r 12·5 x r 2 hours 12·5 ? ? 34·312·5 x r 3Using algebra: 34·3 = 8 x (12·5 x r 3)4·2875 = (12·5 x r 3) 0·343 = r 3 r = 0·70The learning effect was 70% as compared to the forecast rate of 75%, meaning that the labour force learnt more quickly than anticipated. (ii) Adjusted priceThe adjusted price charged will be lower than the original price calculated in part (a). This is because the incremental cost of the 8th unit will be lower given the 70% learning rate, even though the first unit took 12·5 hours. We know this because we are told that the cumulative time for 8 units was actually 34·3 hours. This is lower than the estimated cumulative time in part (a) for 8 units of 40·503158 hours and therefore, logically, the actual incremental time for the 8th unit must be lower than the estimated 3·043518 hours calculated in part (a). Consequently, total cost will be lower and price will be lower, given that this is based on cost.2Glam CoBottleneck activity(a) The bottleneck may have been worked out as follows:Total salon hours = 8 x 6 x 50 = 2,400 each year. The capacity for each senior stylist must be 2,400 hours, which equates to 2,400 cuts each year (2,400/1). Since there are three senior stylists, the total capacity is 7,200 hours or 7,200 cuts each year. Using this method, the capacity for each activity is as follows: Cut Treatment 16,000 4,800 Assistants Senior stylists Junior stylists48,000 7,200 9,6009,600The bottleneck activity is clearly the work performed by the senior stylists.The senior stylists’ time is called a bottleneck activity because it is the activity which prevents the salon’s throughpu t from being higher than it is. The total number of cuts o r treatments which can be completed by the salon’s senior stylists is less than the number which can be completed by other staff members, considering the number of each type of staff available and the time required by each type of staff for each client.(b) TPARCut $ Treatment$ Selling price 60 110Materials ThroughputThroughput per bottleneck hour Total salon costs per BN hour (w1) TPAR0·60 59·40 59·40 42·56 1·48 (7·40+0·6) 102 68 42·56 1·6Working 1: Total salon costs(3 x $40,000) + (2 x $28,000) + (2 x $12,000) + $106,400 = $306,400 Therefore cost for each bottleneck hour = $306,400/7,200 = $42·56Note: Answers based on total salary costs were $80,000 were also equally acceptable since the wording of question was open to interpretation.3Hi Life Co Direct materials: Fabric WoodNote 1 2 $ 200 m 2 at $17·50 per m 2 20 m at $8·20 per m 30 m at $8·50 per m 3,500 164 2552 Direct labour: SkilledSemi-skilledFactory overheadsAdministration overheads50 hours at $24 per hour 300 hours at $14 per hour 20 hours at $15 per hour3 4 5 61,200 4,200 300 –––––––Total cost 9,619–––––– 1 2 Since the material is in regular use by HL Co, it is replacement cost which is the relevant cost for the contract. 30 m will have to be ordered from the alternative supplier for immediate delivery but the remaining 20 m can be used frominventory and replaced by an order from the usual supplier at a cost of $8·20 per m.3 4 5There is no cost for the first 150 hours of labour because there is spare capacity. The remaining 50 hours will be paid at time and a half, which is $16 x 1·5, i.e. $24 per hour.HL Co will choose to use the agency workers, who will cost $14 per hour, since this is cheaper than paying existing semi-skilled workers at $18 per hour ($12 x 1·5) to work overtime.None of the general factory costs are incremental, so they have all been excluded. However, the supervisor’s overtime pay is incremental, so has been included. The supervisor’s normal salary, on the other hand, h as been excluded because it is not incremental.6 These are general overheads and are not incremental, so no value should be included for them.4Jamair(a) The four perspectivesFinancial perspective – this perspective is concerned with how a company looks to its shareholders. How can it create value for them? Kaplan and Norton identified three core financial themes which will drive the business strategy: revenue growth and mix, cost reduction and asset utilisation.Customer perspective – this co nsiders how the organisation appears to customers. The organisation should ask itself: ‘to achieve our vision, how should we appear to our customers?’ The customer perspective should identify the customer and market segments in which the business will compete. There is a strong link between the customer perspective and the revenue objectives in the financial perspective. If customer objectives are achieved, revenue objectives should be too.Internal perspective – this requires the organ isation to ask itself: ‘what must we excel at to achieve our financial and customer objectives?’ It must identify the internal business processes which are critical to the implementation of the organisation’s strategy. These will include the innovation process, the operations process and the post-sales process.Learning and growth perspective – this requires the organisation to ask itself whether it can continue to improve and create value. The organisation must continue to invest in its infrastructure – i.e. people, systems and organisational procedures – in order to improve the capabilities which will help the other three perspectives to be achieved.(b)Goals and measuresFinancial perspectiveGoal Performance measureTo use fewer planes to transport customers Lease costs of plane per customerExplanation – operating efficiency will be driven by getting more customers on fewer planes. This goal and measure cover the cost side of this.Goal Performance measureTo increase seat revenue per plane Revenue per available passenger mileExplanation – this covers the first part of achieving operating efficiency – by having fewer empty seats on planes.Customer perspectiveGoal Performance measureTo ensure that flights are on time‘On time arrival’ ranking from the aviation authorityExplanation – Jamair is currently number 7 in the rankings. If it becomes known as a particularly reliable airline, customers are more likely to use it, which will ultimately increase revenue.Goal Performance measureTo reduce the number of flights cancelled The number of flights cancelledExplanation – again, if flights are seen to be cancelled frequently by Jamair, customers will not want to use it. It needs to be perceived as reliable by its customers.Internal perspectiveGoal Performance measureTo improve turnaround time on the ground‘On the ground’ timeExplanation – less time spent on the ground means fewer planes are needed, which will reduce plane leasing costs. However, it is important not to compromise the quality of cleaning or make errors in refuelling as a consequence of reducing on the ground time.Goal Performance measureTo improve the cleanliness of Jamair’s planes The percentage of customers happy with the standard of the planes,as reported in the customer satisfaction surveys.Explanation –at present, only 85% of customers are happy with the standard of cleanliness on Jamair’s planes. This could be causing loss of revenue.Goal Performance measureTo develop the online booking system Percentage downtime.Explanation – since the company relies entirely on the booking system for customer booking of flights and check-in, it is critical that it can deal with the growing number of customers.Learning perspectiveGoal Performance measureTo reduce the employee absentee rate The number of days absent per employeeExplanation – it is critical to Jamair that its workforce is reliable as, at worse, absent staff lead to cancelled flights.Goal Performance measureNumber of days’ training per ground crew member To increase ground crew training on cleaning andrefuelling proceduresExplanation – if ground crew are better trained, they can reduce the number of minutes that the plane stays on the ground, which will result in fewer planes being required and therefore lower costs. Also, if their cleaning is better, customer satisfaction and retention will increase.Note: Only one goal and measure were required for each perspective. In order to gain full marks, answers had to be specific to Jamair as stated in the requirements.5Safe Soap Co(a) Variance calculationsMix varianceTotal kg of materials per standard batch = 0·25 + 0·6 + 0·5 = 1·35 kgTherefore standard quantity to produce 136,000 batches = 136,000 x 1·35 kg = 183,600 kgActual total kg of materials used to produce 136,000 batches = 34,080 + 83,232 + 64,200 = 181,512 kgMaterial Actual quantityStandard mixkgs181,512 x 0·25/1·35 = 33,613·33181,512 x 0·6/1·35 =Actual quantityActual mixkgs34,08083,232Variance Standard costper kgVariancekgs(466·67)(2,560)$104$(4,666·70)(10,240)LyeCoconut oil Shea butter80,672181,512 x 0·5/1·35 = 67,226·6764,2003,026·6739,080·01––––––––––––––––––––––––––181,512181,512(5,826·69)A––––––––––––––––––––––––––Yield varianceMaterial Standard quantityStandard mix Actual quantityStandard mixkgs33,613·3380,672Variance Standard costper kgVariancekgs386·67928$104$3,866·703,712Lye Coconut oil Shea butter 0·25 x 136,000 =0·6 x 136,000 =0·5 x 136,000 =34,00081,60068,00067,226·67773·3332,319·99––––––––183,600––––––––––––––––––181,5129,898·69F––––––––––––––––––––––––––(b)(i) A materials mix variance will occur when the actual mix of materials used in production is different from the standardmix. So, it is inputs which are being considered. Since the total mix variance is adverse for the Safe Soap Co, this means that the actual mix used in September and October was more expensive than the standard mix.A material yield variance arises because the output which was achieved is different from the output which would havebeen expected from the inputs. So, whereas the mix variance focuses on inputs, the yield variance focuses on outputs.In both September and October, the yield variance was favourable, meaning that the inputs produced a higher level of output than one would have expected.(ii)Whilst the mix and yield variances provide Safe Soap Co with a certain level of information, they do not necessarily explain any quality issues which arise because of the change in mix. The consequences of the change may well havean impact on sales volumes. In Safe Soap Co’s case, the sales volume variance is adverse, meaning that sales volumeshave fallen in October. It is not known whether they also fell in September but it would be usual for the effects on sales of the change in mix to be slightly delayed, in this case by one month, given that it is only once the customers startreceiving the slightly altered soap that they may start expressing their dissatisfaction with the product.There may also be other reasons for the adverse sales volume variance but given the customer complaints which have been received, the sales manager’s views should be taken on b oard.Fundamentals Level – Skills Module, Paper F5Performance Management December 2014 Marking Scheme Section A Marks2 marks per question40––––––Section B1(a)PriceCumulative average time per unit for 8 units Total time for 8 unitsCumulative average time per unit for 7 units Total time for 7 unitsIncremental time for 8th unitCost for 8th unitTotal cost1 0·5 1 0·5 0·5 0·5 0·5Price0·5–––5–––(b)(i)Learning rateCalculating learning rate Saying whether better or worse 2·5 0·5–––3–––(ii)Effect on price2–––Total marks10––––––2(a)(b)Calculation and justification of bottleneckExplanation of bottleneck31–––4–––TPARThroughput1111 Throughput per bottleneck hourTotal salon costsCost per hourTPAR2–––6–––Total marks10––––––3Fabric calculation Fabric reasonWood calculation 0·5 0·5 1Wood reason1Skilled labour calculation Skilled labour reason 1 1Semi-skilled labour calculationSemi-skilled labour reasonFactory overheads calculation Factory overheads reason Administration overheads reason Total relevant cost (lowest cost estimate)0·5 1 0·5 1·5 1 0·5–––Total marks10––––––（此文档部分内容来源于网络，如有侵权请告知删除，文档可自行编辑修改内容，供参考，感谢您的配合和支持）Marks4(a)(b)PerspectivesExplanation for each perspective1·5–––6–––Goals and measuresEach goal/measure/explanationPresentation and structure21–––9–––Total marks15––––––5(a)(b)Variance calculationsMix varianceQuantity variance44–––8–––(i)VariancesMarks per variance explained2–––4–––(ii)DiscussionPer valid point1–––3–––Total marks15––––––。
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Fundamentals Level – Skills Module, Paper F5Performance Management June 2014 Answers 1(a)Full budgeted production cost per unit using absorption costingProduct X Y Z TotalBudgeted annual production (units)20,00016,00022,000Labour hours per unit2·532T otal labour hours50,00048,00044,000142,000Overhead absorption rate = $1,377,400/142,000 = $9·70 per hour.Product X Y Z$ per unit$ per unit$ per unitDirect materials252822Direct labour303624Overhead ($9·70 x 2·5/3/2)24·2529·1019·40––––––––––––––––––Full cost per unit79·2593·1065·40––––––––––––––––––(b)Full budgeted production cost per unit using activity based costingProduct X Y Z TotalBudgeted annual production (units)20,00016,00022,000Batch size500800400Number of batches (i.e. set ups)402055115Number of purchase orders per batch454Total number of orders160100220480Machine hours per unit1·51·251·4Total machine hours30,00020,00030,80080,800Cost driver rates:Cost per machine set up$280,000/115 = $2,434·78Cost per order$316,000/480 = $658·33Cost per machine hour($420,000 + $361,400)/80,800 = $9·67Allocation of overheads to each product:Product X Y Z Total$$$Machine set up costs97,39148,696133,913280,000Material ordering costs105,33365,833144,834316,000Machine running and facility costs290,100193,400297,836781,336*––––––––––––––––––––––––––––––––––T otal492,824307,929576,5831,377,336––––––––––––––––––––––––––––––––––Number of units produced20,00016,00022,000Overhead cost per unit$24·64$19·25$26·21Total cost per unit:$ per unit$ per unit$ per unitDirect materials252822Direct labour303624Overhead24·6419·2526·21––––––––––––––––––ABC cost per unit79·6483·2572·21––––––––––––––––––*A difference of $64 arises here as compared to the cost pool total of $781,400 because of rounding differences. This has been ignored.(c)When activity based costing is used, the cost for product X is very similar to that cost calculated using full absorption costing.This means that the price for product X is likely to remain unchanged because cost plus pricing is being used. Demand for product X is relatively elastic but since no change in price is expected, sales volumes are likely to remain the same if ABC is introduced.However, the cost for product Y is almost $10 per unit less using ABC. This means that the price of product Y will go down if cost plus pricing is used. Given that demand for product Y is also elastic, like demand for product X, a reduced selling price is likely to give rise to increased sales volumes.The cost of product Z is nearly $7 per unit more using ABC and the price of product Z will therefore go up if ABC is used.Given that demand for product Z is relatively inelastic, this means that sales volumes would be expected to be largely unchanged despite an increase in price.2(a)Optimum production planDefine the variablesLet x = number of units of Xeno to be produced.Let y = number of units of Yong to be produced.Let C = contribution.State the objective functionC = 30x+ 40yState the constraintsBuild time: 24x + 20y ≤1,800,000Program time: 16x + 14y ≤1,680,000T est time: 10x + 4y ≤720,000Non-negativity constraints:x, y ≥0Sales constraintsx ≤85,000y ≤66,000Draw the graphBuild time:If x = 0, y = 1,800,000/20 = 90,000If y = 0, x = 1,800,000/24 = 75,000Program time:If x = 0, y = 1,680,000/14 = 120,000If y = 0, x = 1,680,000/16 = 105,000Test time:If x = 0, y = 720,000/4 = 180,000If y = 0, x = 720,000/10 = 72,000Solve using the iso-contribution lineIf y = 40,000, C = 40,000 x $40 = $1,600,000If C = $1,600,000 and y = 0, x = $1,600,000/$30 = 53,333·333(a)Ratios(i)ROCE = operating profit/capital employed x 100%$’000ROCEW Co Design division6,000/23,54025·49%Gearbox division3,875/32,32011·99%C Co7,010/82,9758·45%(ii)Asset turnover = sales/capital employed x 100%$’000Asset turnoverW Co Design division14,300/23,5400·61Gearbox division25,535/32,3200·79C Co15,560/82,9750·19(iii)Operating profit margin = operating profit/sales x 100%$’000Operating profitW Co Design division6,000/14,30041·96%Gearbox division3,875/25,53515·18%C Co7,010/15,56045·05%Both companies and both divisions within W Co are clearly profitable. In terms of what the different ratios tell us, ROCE tells us the return which a company is making from its capital. The Design division of W Co is making the highest return at over 25%, more than twice that of the Gearbox division and nearly three times that of C Co. This is because the nature of a design business is such that profits are largely derived from the people making the designs rather than from the assets. Certain assets will obviously be necessary in order to produce the designs but it is the employees who are mostly responsible for generating profit.The Gearbox division and C Co’s ROCE are fairly similar compared to the Design division, although when comparing the two in isolation, the Gearbox division’s ROCE is actually over three percentage points higher than C Co’s (11·99% compared to 8·45%). This is because C Co has a substantially larger asset base than the Gearbox division.From the asset turnover ratio, it can be seen that the Gearbox division’s assets generate a very high proportion of sales per $ of assets (79%) compared to C Co (19%). This is partly because the Gearbox division buys its components in from C Co and therefore does not need to have the large asset base which C Co has in order to make the components. When the unit profitability of those sales is considered by looking at the operating profit margin, C Co’s unit profitability is much higher than the Gearbox division (45% operating profit margin as compared to 15%). The Design division, like the Gearbox division, is also using its assets well to generate sales (asset turnover of 61%) but then, like C Co, its unit profitability is high too (42% operating profit margin.) This is why, when the two ratios (operating profit margin and asset turnover) are combined to make ROCE, the Design division comes out top overall – because it has both high unit profitability and generates sales at a high level compared to its asset base.It should be noted that any comparisons between such different types of business are of limited use. It would be more useful to have prior year figures for comparison and/or industry averages for similar businesses. This would make performance review much more meaningful.(b)Transfer pricesFrom C Co’s perspectiveC Co transfers components to the Gearbox division at the same price as it sells components to the external market. However,if C Co were not making internal sales then, given that it already satisfies 60% of external demand, it would not be able to sell all of its current production to the external market. External sales are $8,010,000, therefore unsatisfied external demand is ([$8,010,000/0·6] –$8,010,000) = $5,340,000.From C Co’s perspective, of the current internal sales of $7,550,000, $5,340,000 could be sold externally if they were not sold to the Gearbox division. Therefore, in order for C Co not to be any worse off from selling internally, these sales should be made at the current price of $5,340,000, less any reduction in costs which C Co saves from not having to sell outside the group (perhaps lower administrative and distribution costs).As regards the remaining internal sales of $2,210,000 ($7,550,000 –$5,340,000), C Co effectively has spare capacity to meet these sales. Therefore, the minimum transfer price should be the marginal cost of producing these goods. Given that variable costs represent 40% of revenue, this means that the marginal cost for these sales is $884,000. This is therefore the minimum price which C Co should charge for these sales.In total, therefore, C Co will want to charge at least $6,224,000 for its sales to the Gearbox division.From the Gearbox division’s perspectiveThe Gearbox division will not want to pay more for the components than it could purchase them for externally. Given that it can purchase them all for 95% of the current price, this means a maximum purchase price of $7,172,500.OverallT aking into account all of the above, the transfer price for the sales should be somewhere between $6,224,000 and $7,172,500.4(a)Profit outcomesUnit contribution Sales price per unit$30$35Up to 100,000 units$18$23Above 100,000 units$19$24Sales price $30Sales Unit Total Fixed Advertising Profitvolume contribution contribution costs costs$$’000$’000$’000$’000 120,000192,280450900930110,000192,090450900740140,000192,6604509001,310Sales price $35Sales Unit Total Fixed Advertising Profitvolume contribution contribution costs costs$$’000$’000$’000$’000 108,000242,5924509701,172100,000232,30045097088094,000232,162450970742(b)Expected valuesSales price $30Sales Profit Probability EV ofvolume profit$’000$’000120,0009300·4372110,0007400·5370140,0001,3100·1131––––873––––Sales price $35Sales Profit Probability EV ofvolume profit$’000$’000108,0001,1720·3351·6100,0008800·326494,0007420·4296·8––––––912·4––––––If the criterion of expected value is used to make a decision as to which price to charge, then the price charged should be $35 per unit since the expected value of this option is the greatest.(c)Maximin decision ruleUnder this rule, the decision-maker selects the alternative which offers the most attractive worst outcome, i.e. the alternative which maximises the minimum profit. In the case of Gam Co, this would be the price of $35 as the lowest profit here is $742,000 as compared to a lowest profit of $740,000 at a price of $30.(d)Reasons for uncertainty arising in the budgeting processUncertainty arises largely because of changes in the external environment over which a company will sometimes have little control. Reasons include:–Customers may decide to buy more or less goods or services than originally forecast. For example, if a major customer goes into liquidation, this has a huge effect on a company and could also cause them to go into liquidation.–Competitors may strengthen or emerge and take some business away from a company. On the other hand, a competitor’s position may weaken leading to increased business for a particular company.–T echnological advances may take place which lead a company’s products or services to become out-dated and therefore less desirable.–The workforce may not perform as well as expected, perhaps because of time off due to illness or maybe simply because of lack of motivation.–Materials may increase in price because of global changes in commodity prices.–Inflation can cause the price of all inputs to increase or decrease.–If a company imports or exports goods or services, changes in exchange rates can cause prices to change.–Machines may fail to meet production schedules because of breakdown.–Social/political unrest could affect productivity, e.g. the workforce goes on strike.Note:This list is not exhaustive, nor would candidates be expected to make all the points raised in order to score full marks.5(a)Variances(i)The sales mix contribution varianceCalculated as (actual sales quantity – actual sales quantity in budgeted proportions) x standard contribution per unit.Standard contributions per valet:Full = $50 x 44·6% = $22·30 per valetMini = $30 x 55% = $16·50 per valetActual sales quantity in budgeted proportions (ASQBP):Full: 7,980 x (3,600/5,600) = 5,130Mini: 7,980 x (2,000/5,600) = 2,850Valet type AQAM AQBM Difference Standard Variancecontribution$$Full4,0005,130(1,130)22·3025,199AMini3,9802,8501,13016·5018,645F–––––––6,554A–––––––(ii)The sales quantity contribution varianceCalculated as (actual sales quantity in budgeted proportions – budgeted sales quantity) x standard contribution per unit.Valet type AQBM BQBM Difference Standard Variancecontribution$$Full5,1303,6001,53022·3034,119FMini2,8502,00085016·5014,025F–––––––48,144F–––––––(b)DescriptionThe sales mix contribution varianceThis variance measures the effect on profit of changing the mix of actual sales from the standard mix.The sales quantity contribution varianceThis variance measures the effect on profit of selling a different total quantity from the budgeted total quantity.(c)Sales performance of the businessThe sales performance of the business has been very good over the last year, as shown by the favourable sales quantity variance of $48,144. Overall, total sales revenue is 33% higher than budgeted (($319,400 –$240,000)/$240,000). This is because of a higher total number of valets being performed. When you look at where the difference in sales quantity actually is, you can see from the data provided in the question that it is the number of mini valets which is substantially higher. This number is 99% ((3,980 –2,000)/2,000) higher than budgeted, whereas the number of full valets is only 11% ((4,000 –3,600)/3,600) higher. Even 11% is still positive, however.The fact that the number of mini valets is so much higher combined with the fact that they generate a lower contribution per unit than the full valet led to an adverse sales mix variance of $6,554 in the year. This cannot be looked at in isolation as a sign of poor performance; it is simply reflective of the changes which have occurred in Strappia. We are told that disposable incomes in Strappia have decreased by 30% over the last year. This means that people have less money to spend on non-essential expenditure such as car valeting. Consequently, they are opting for the cheaper mini valet rather than the more expensive full valet. At the same time, we are also told that people are keeping their cars for an average of five years now as opposed to three years. This may be leading them to take more care of them and get them valeted regularly because they know that the car has to be kept for a longer period. Thus, the total quantity of valets is higher than budgeted, particularly the mini valets.Also, there is now one less competitor for Valet Co than there was a year ago, so Valet Co may have gained some of the old competitor’s business. T ogether, all of these factors would explain the higher number of total valets being performed and in particular, of the less expensive type of valet.Note:Other valid points will be given full credit.Fundamentals Level – Skills Module, Paper F5Performance Management June 2014 Marking SchemeMarks1(a)Full absorption costOverhead absorption rate1·5Cost for X incl labour and materials0·5Cost for Y incl labour and materials0·5Cost for Z incl labour and materials0·5–––3–––(b)Activity based costCorrect cost driver rates4·5Overhead unit cost for X1Overhead unit cost for Y1Overhead unit cost for Z1Adding labour and materials costs2T otal cost for X0·5T otal cost for Y0·5T otal cost for Z0·5–––11–––(c)DiscussionEffect on price3Effect on sales volume3–––6–––Total marks20––––––2(a)Optimum production planStating the objective function0·5Defining constraint for built time0·5Defining constraint for program time0·5Defining constraint for test time0·5Non-negativity constraints0·5Sales constraint x0·5Sales constraint y0·5Iso-contribution line worked out 1The graph:Labels 0·5Build time line0·5Program time line0·5T est time line0·5Demand for x line0·5Demand for y line0·5Iso-contribution line 0·5Feasible region identified and labelled/shaded 1Optimum point identified 1Equations solved at optimum point3T otal contribution0·5T otal profit0·5–––14–––(b)Slack valuesT est time calculation1·5Program time calculation1·5Defining and identifying slack resources1·5Discussing implication of slack resources1·5–––6–––Total marks20––––––Marks 3(a)RatiosCalculating ROCE1·5Calculating asset turnover1·5Calculating operating profit margin1·5Per valid comment1–––10–––(b)Transfer pricingEach valid comment/calculation 1 or 2–––10–––Total marks20––––––4(a)Profit outcomesUnit contribution up to 100,000 units1Unit contribution above 100,000 units1Each line of table for price of $30 (3 in total)1Each line of table for price of $35 (3 in total)1–––8–––(b)Expected valuesExpected value for $301Expected value for $351Recommendation1–––3–––(c)MaximinExplanation2Decision1–––3–––(d)UncertaintyEach point made1–––6–––Total marks20––––––5(a)CalculationsSales mix contribution variance4Sales quantity contribution variance4–––8–––(b)DescriptionOne mark per description2–––(c)Discussion on sales performanceCalculations –each one, max 20·5Maximum for each point made2–––10–––Total marks20––––––。