ACCAF5考试真题答案
ACCA资料 真题 f5_2014_jun_a
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––––––。
ACCA F5 2010年12月真题答案
Actual volume
750 650
Sales price Variance
$ 15,000 A
6,500 A ––––––– 21,500 A –––––––
Sales volume contribution variance = (actual sales volume – budgeted sales volume) x standard margin
Cost of sales Cost of sales has decreased by 19·2% in 2010. This must be considered in relation to the decrease in turnover as well. In 2009, cost of sales represented 72·3% of turnover and in 2010 this figure was 63·7%. This is quite a substantial decrease. The reasons for it can be ascertained by, firstly, looking at the freelance staff costs.
It can also be seen from the non-financial performance indicators that 20% of students in 2010 are students who have transferred over from alternative training providers. It is likely that they have transferred over because they have heard about the improved service that AT Co is providing. Hence, they are most likely the reason for the increased market share that AT Co has managed to secure in 2010.
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.
2015年6月ACCA考试F5mock答案
Section A1.relevant cost for materials:A:2000*12=24000(Purchase cost)B:2000*10=20000(replacement cost)C:1400*5+600*8=11800(scrap value+purchase cost)D:6000(opportunity cost2.D3.BTarget cost=18000*0.9=16200Attainable cost=16286Cost gap=864.D5.D ZBB is not suitable for manufacturing cost and can be applied to service costs6.A7.D8.D9.C each staff only works for40*(52-5)=1880hours10.B11.B12.D(120*3.5vs410)*4=40(F)13.A contribution/unit=30-(10+8+4+2)=6BEP(units)=64000/6=1066714.DEV with perfect information=15.C16.C17.ATime9th=total time for1-8units–total time for1-7units(using the learning effect formular directly)18.A Using average growth model F=O(1+g)^419.A20.AAns for Q19+20MIX VARIANCEProduct actual mix std mix variance(units)std rate variance($)PP129803284304A123648APP230402736304F72128F60206020QUANTITY VARIANCEProduct actual QTY Budgeted qty variance(units)std rate variance($)@std mix@std mixPP132843000284F123408FPP227362500236F71652FSECTION BQUESTION1(A)Machine hour required=4000*(6+4+8)=72000hoursMachine hour available=70000Machine hour in shortage=2000Therefore machine hour is the limiting factorCP1CP2CP3$$$Relevant cost of making407248Relevant cost of buying588068Cost saving/unit18820Machine hours/unit648Cost saving/machine hour32 2.5Ranking132Machine hours available700000CP1:4000*6=24000CP3:4000*8=32000CP2:3500*4=14000TOTAL:700000Therefore the company should buy another500units of CP2from external supplier.(B)Three other factors(reference point only.In final exams please write in sentences)●the loss of control over the whole production process●the quantity and the quality supplied by the external contractor●the price stability can be sustained or not.●Any other possible ways to increase the capacity of the production etc.QUESTION2(A)Payoff tables:size demand sales@20vc/unit goodwill depre net profitsmall 11013022008801201501050 11020022008801201501050medium 1701302600915.23101374.8 170200340013601203101610large 2401302600915.24201264.8 240200400014084202172(B)Maximax rule:Size demand profit Small1101301050 Medium1702001610 Large2402002172Therefore the company should buy large oneMaximin ruleSize demand profit Small1102001050 Medium1702001374.8 Large2402001264.8Therefore the company should buy medium Mini max-regretsummary(A)demand 130200size 11010501050 1701374.81610 2401264.82172regretdemand maxregret 130200size 110324.811221122 1700562562 2401100110Therefore the company should buy large oneQUESTION3(A)ABC VarianceExpenditure variance=1800*45vs84000=3000(A)Efficicency variance=(2100vs1800)*45=13500(F)Std cost driver rate=90000/2000=45/movement10500units of product should use(10500*2000)/10000=2100movements(b)Original std:0.5hr@$20/hrRevised std0.5hr*1.1@$20*0.95/hrActual std11000hrs@140800Labor rate variance-planning=18500*0.55*(20vs20*0.95)=10175F-operational=11000*0.95*20vs140800=68200FLabor efficiency var-planning=18500*(0.5vs0.55)*20=18500A-Operational=(18500*0.55vs11000)*20*0.95=15675AQUESTION4(refer to REFERENCE ANSWER FOR DEC/2011Q3) QUESTION5(a)cost pool cost driver cost($)number of driverscost driver rateproduction set-ups production runs105,000150700process testing#of tests300,0003,000100material handling cost #of materialmovements50,0001,00050ordering cost order numbers225,0002,000112.5(b)TOTAL production overheads for10,000units are:set-ups7000number of tests800number of material movements750number of order16875Total:25425Volume:10000Production overheads/unit 2.54General overheads:OAR=1.8mil/600000hrs=$3/hrTotal labor hours for10000units of products=10000/4=2500hoursGeneral o/h per unit=2500/10000*3=$0.75/unitTotal unit cost and selling price for productCost$/unitComponent cost 1.5Direct labor(15/60*8)2Production overheads 2.54General O/H0.75Total unit cost 6.79Mark-up(6.79*0.4) 2.72Selling price9.51。
历年6月ACCA考试F5真题答案
(c) Maximin and expected value decision rules The ‘maximin’ decision rule looks at the worst possible outcome at each supply level and then selects the highest one of these. It is used when the outcome cannot be assessed with any level of certainty. The decision maker therefore chooses the outcome which is guaranteed to minimise his losses. In the process, he loses out on the opportunity of making big profits. It is often seen as the pessimistic approach to decision-making (assuming that the worst outcome will occur) and is used by decision makers who are risk averse. It can be used for one-off or repeated decisions.The ‘expected value’ rule calculates the average return that will be made if a decision is repeated again and again. It does this by weighting each of the possible outcomes with their relative probability of occurring. It is the weighted arithmetic mean of the possible outcomes.Since the expected value shows the long run average outcome of a decision which is repeated time and time again, it is a useful decision rule for a risk neutral decision maker. This is because a risk neutral person neither seeks risk or avoids it; they are happy to accept an average outcome. The problem often is, however, that this rule is often used for decisions that only occur once. In this situation, the actual outcome is unlikely to be close to the long run average. For example, with Cement Co, the closest actual outcome to the expected value of $1,172,000 is the outcome of $1,085,000. This is not too far away from the expected value but many of the others are really different.。
2016年9月份ACCA考试科目F5真题练习及答案解析
备考ACCA考试科目F5时，练习真题是很重要的，熟悉掌握考试知识点，做到充分的准备迎接考试。
在考生备考A CCA中，小编为大家整理了ACC A历年真题和答案解析，希望能帮助大家备考ACCA考试F6科目，下面跟随小编一起练习真题吧！1.VPS Is a largemanufa cturi ng busine ss that Is Introd ucing an activi ty basedcostin g system into its busine ss. VPS shipscompon entsvia 1ts own logist ics operat ion to its centra l manufa cturi ng center In Glasgo w from a wide variet y of locati ons. It is attemp tingto identi fy the correc t cost driver for the cost pool called ';compon ent handli ng';.Whichof the follow ing wouldbe the correc t figure to use?A.Averag e compon entsper unitB.Totalnumber of compon entsshippe dC.Averag e distan ce travel led by a compon entD.Totalcompon ents-distan ce travel ledAnswer：DA totalfigure is needed and assumi ng distan ce travel led increa ses the costsof handli ng, then the correc t answer is D.2.Weaver ltd prints two weekly newspa pers:the Crysta l Courie r (40,000 copies In one weekly produc tionrun) and the Palace Bugle(25,000 copies in total, splitover two produc tionruns everyweek.) Produc tionrun set-up costsamount to $2,150 everyweek. Weaver uses Activi ty BasedCostin g and the number of produc tionruns as a cost driver. 1What is the set-up cost for each copy of the Pa lace Bugle?A. $0.018 per copyB. $0.033 per copyC. $0.043 per copyD. $0.057 per copyAnswer：DThe overhe ad absorp tionrate per produc tionrun is calcul atedasOAR = (Produc tionset-up costs, in)/ (Number of produc tionruns)OAR = $2,150/ (3 produc tionruns everyweek)OAR = $716.67 per produc tionrun.For the Palace Bugle, 2 set-up runs* $716.67 per run = $1,433.33. Spread over 25,000H $1,433.33 $ copies, t is amount s to _ 0.057 per copy. 25,000 papers3.The follow ing statem entshave been made aboutABC and cost driver s.(1) A cost driver is any factor that causes a change in the cost of an activi ty.(2) For long-term variab le overhe ad costs, the cost driver will be the volume of activi ty.(3) Tradit ional absorp tioncostin g tendsto under-alloca te overhe ad coststo low-volume produc ts.Whichof the abovestatem entsis/are true?A.and (3) onlyB.and (3) onlyC.and (2) onlyD.(1), (2) and (3)Answer：DStatem ent (1) provid es a defini tionof a cost driver. Cost driver s for long-term variab le overhe ad costswill be the volume of a partic ularactivi ty to whichthe cost driver relate s, so Statem ent (2) is correc t. Statem ent (3) is also correc t. In tradit ional absorp tioncostin g, standa rd high -volume produc ts receiv e a higher amount of overhe ad coststhan with ABC. ABC allows for the unusua lly high costsof suppor t activi tiesfor low-volume produc ts (such as relati velyhigher set-up costs, orderproces singcostsand so on).结合老师的辅导和真题的练习，相信大家一定能取得优异的ACCA考试成绩。
2015年6月ACCA F5考试真题答案
A 38·80 104·64
9·28 144·00 ––––––––– 296·72 –––––––––
1,200 800
––––––––– 2,296·72 –––––––––
B 58·20 209·28 37·12 288·00 ––––––––– 592·60 –––––––––
2,640 1,620 ––––––––– 4,852·60 –––––––––
A 14,600 14,600 350,400 14,600
B 22,400 33,600 1,075,200 89,600
Total 37,000 48,200 1,425,600 104,200
Cost driver rates
Administrative costs – $1,870,160/48,200 = $38·80 per admin hour
Overhead allocation per procedure Procedure
Administrative costs Nursing costs Catering costs General facility costs
Add direct costs: Surgical Anaesthesia Total cost per procedure
Answers
Fundamentals Level – Skills Module, Paper F5 Performance Management
Section A
1C
Divisional profit before depreciation = $2·7m x 15% = $405,000 per annum. Less depreciation = $2·7m x 1/50 = $54,000 per annum. Divisional profit after depreciation = $351,000 Imputed interest = $2·7m x 7% = $189,000 Residual income = $162,000.
ACCA_F5_201212_Ans
高C A a c c a .g n .c nFundamentals Level – Skills Module, Paper F5Performance Management December 2012 Answers1Hair Co (a)Weighted average contribution to sales ratio (WA C/S ratio) = total contribution/total sales revenue. Per unit:C SD $$$Selling price 110160120Material 1(12)(28)(16)Material 2(8)(22)(26)Skilled labour (16)(34)(22)Unskilled labour (14)(20)(28)–––––––––Contribution 605628–––––––––Sales units20,00022,00026,000T otal sales revenue$2,200,000$3,520,000$3,120,000T otal contribution$1,200,000$1,232,000$728,000WA C/S ratio = $1,200,000 + $1,232,000 + $728,000/$2,200,000 + $3,520,000 + $3,120,000= $3,160,000/$8,840,000 = 35·75%(b)Break-even sales revenue = fixed costs/C/S ratio Therefore break-even sales revenue = $640,000/35·75% = $1,790,209·70.(c)PV chart Calculate the individual C/S ratio for each product then rank them according to the highest one first.Per unit:C SD $$$Contribution 605628Selling price 110160120C/S ratio 0·550·350·23Ranking 123ProductRevenueCumulative Revenue Profit Cumulative Profit (x axis co-ordinate)(y axis co-ordinate)$$$$(640,000)(640,000)Make C 2,200,0002,200,0001,200,000560,000Make S 3,520,0005,720,0001,232,0001,792,000Make D3,120,0008,840,000728,0002,520,000高顿财经A C C A a c c a .g a o d u n .c n(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 $’000CSD高顿财经A C C A a c c a .g a o d u n .c nLabour 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 is a combination of visitors coming through the fashion magazine’s website (28,201 visitors W5), with the remainder of the increase most 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 increased高顿财经A C C A a c c a .g a o d u n .c nfrom 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 the高顿财经A C C A a c c a .g a o d u n .c nmonth, 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 this due 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 SProduct R$$Materials cost11795Labour cost (at $12 per hour)69Overhead costs 148·1274·06––––––––––––T otal cost271·12178·0610% mark-up27·11 17·81 ––––––––––––T ransfer price using machine hours 298·23195·87––––––––––––(b)Transfer price using ABC Machine 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 orders 82 + 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 = $1,002·78高顿财经A C C A a c c a .g a o d u n .c nAllocation of overheads to each product:Product SProduct RTotal $$$Machine set-up costs218,88287,553306,435Machine maintenance costs 224,192190,913415,106Ordering costs 6,5605,12011,680Delivery costs64,178 80,222144,400––––––––––––––––––––––––T otal overheads allocated 513,812363,808877,620––––––––––––––––––––––––Number of units produced 3,2005,4508,650$$Overhead cost per unit 160·5766·75T ransfer price per unit:Materials cost 11795Labour cost 69Overhead costs 160·5766·75––––––––––––––T otal cost283·57170·75Add 10% 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 Total Production and sales 3,2005,450$$10% mark up 28·3617·08––––––––––––––––––––Profit90,75293,086183,838––––––––––––––––––––––––––––Retail divisionProduct S Product R TotalProduction and sales 3,2005,450$$Selling price 320260Cost price (311·93)(187·83)–––––––––––––––––––––Profit per unit 8·0772·17–––––––––––––––––––––T otal profit25,824393,327419,151–––––––––––––––––––––––––––––(ii)Discussion From 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 is approximately $183,000 and $419,000 for the retail division. It is the reallocation of profits from R to S or S to R that is the important factor in this situation, given that the retail division wants to reduce prices but increase sales volumes 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 difference becomes 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 the profit then moves to product R. In the case of ABC, the profit moves so much to R that S only generates a profit per 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 result because firstly, it is complex and secondly, it is unnecessary here. The aim of this exercise is to set more accurate transfer prices for R and S, which should mean a reduction in R’s transfer price and an increase in S’s, according to the information given. This would then have the effect of enabling the retail division to lower its price for R and increase sales volumes. This goal is achieved simply by changing the basis of overhead absorption from labour hours to machine hours, without the need for activity based costing.高顿财经A C C A a c c a .g a o d u n .c n–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.高顿财经A C C A a c c a .g a o d u n .c nFundamentals Level – Skills Module, Paper F5Performance ManagementDecember 2012Marks1Hair Co (a)Weighted average C/S ratio Individual contributions 3T otal sales revenue 1T otal contribution 1Ratio1–––6–––(b)Break-even revenue 2–––(c)PV chartIndividual CS ratios 1·5Ranking1Workings for chart 2Chart:Labelling0·5Plotting each of six points 4–––9–––(d)DiscussionGeneral comments re assumptions of CVP (max. 2 marks)1Each valid point re BEP 1–––3–––Total20––––––2Truffle Co (a)Rate and efficiency variances Rate variance2Efficiency variance 2–––4–––(b)Planning and operational variances Labour rate planning variance 2Labour rate operational variance 2Labour efficiency planning variance 2Labour efficiency operational variance 2–––8–––(c)DiscussionOnly operational variances controllable 1No labour rate operating variance1Planning variance down to company, not manager 2Labour efficiency total variance looks bad2Manager has performed well as regards efficiency 2Standard for labour time was to blame 2Conclusion 2–––Maximum marks 8–––Total20––––––高顿财经A C C A a c c a .g a o d u n .c nMarks3Web CoCalculations 4Missing info3Discussion and further analysis (2–3 marks per point)18Conclusion 2–––Total20––––––4Designit (a)ExplanationUpdated after one month elapsed 1Always 12 months 1Example given1First month in detail 1Later month less detail1Need to revisit earlier months 1–––Maximum4–––(b)Problems More time1Lack of experience 1T oo regular2Managers’ resistance 2Work harder1Holding back work 2–––Maximum 6–––(c)Simpler incentive scheme Current target too easy 1Second target too hard1Other valid point re current scheme 1New scheme outlined 3–––6–––(d)Using spreadsheets Errors entering data1Rolling budgets more complex 1Formulae may be wrong 1Corruption of model 1No audit trail 1–––Maximum 4–––Total20––––––高顿财经A C C A a c c a .g a o d u n .c nMarks5Wash Co (a)T ransfer price using machine hours Calculating OAR 1New TP for S 1New TP for R1–––3–––(b)T ransfer price using ABC Identify cost drivers 1Cost driver rates2T otal overheads allocated 2Overhead cost per unit 1T otal cost per unit 1T ransfer price per unit1–––8–––(c)ABC profit and discussion (i)Profit calculation 3–––(ii)Each valid comment 2–––Maximum marks 6–––Total20––––––21高顿财经A C C A a c c a .g a o d u n .c n。
ACCA F5考试真题答案
AnswersFundamentals Level – Skills Module, Paper F5 Performance ManagementSection A 1ADivision A: Profit = $14·4m x 30% = $4·32m Imputed interest charge = $32·6m x 10% = $3·26m Residual income = $1·06m Division B: Profit = 8·8m x 24% = $2·112m Imputed interest charge = $22·2m x 10% = $2·22m Residual income = $(0·108)m 2345DAll 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. 6AProductA BC D Selling price per unit Raw 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 Rank 6 $7·67 2 8 $6·504 3 $7 2 $30 1 3 Normal monthly hours (total units x hours per unit) 1,8001,000720800If 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). 78B460 – 400 = 60 clients$40,000 – $36,880 = $3,120 VC per unit = $3,120/60 = $52Therefore FC = $40,000 – (460 x $52) = $16,080 BIncrease 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 productsunder-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 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 co 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 = $234,000 Average manager: $180,000 x 1·2 = $216,000 Poor: $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 = $218,7Deduct salary cost and EV with manager = $178,700Therefore do not employ manager as profits will fall by $1,300. 18 BSet-up costs per production run = $140,000/28 = $5,000 Cost 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 80,00020 This 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 b Cumulative 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 rateCumulative number ofseats produced 1 2 4 8Cumulative totalCumulative averagehours 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 quicklythan anticipated. (ii) Adjusted priceThe adjusted price charged will be lower than the original price calculated in part (a). This is because the incrementa 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 estima 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 equate 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 e 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 fro being higher than it is. The total number of cuts or treatments which can be completed by the salon’s senior stylists is 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 Throughput Throughput per bottleneck hour Total salon costs per BN hour (w1) TPAR 0·60 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 3,500 164 255 2 Direct labour: SkilledSemi-skilledFactory overheadsAdministration overheads 50 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 from inventory 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 tim 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 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. However, the supervisor’s overtime pay is incremental, so has been included. The supervisor’s normal salary, on the other hand, has been excluded because it is no 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 valuefor 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 considers how the organisation appears to customers. The organisation should ask itself: achieve our vision, how should we appear to our customers?’ The customer perspective should identify the customer a market segments in which the business will compete. There is a strong link between the customer perspective and revenue objectives in the financial perspective. If customer objectives are achieved, revenue objectives should be too.Internal perspective – this requires the organisation 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 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 b 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 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, 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 measureTo increase ground crew training on cleaning andNumber of days’ training per ground crew member refuelling proceduresExplanation – if ground crew are better trained, they can reduce the number of minutes that the plane stays on the groun 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.5 Safe 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)Lye Coconut oil Shea butter80,672181,512 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 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 =34,00081,60068,000 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 the standardmix. So, it is inputs which are being considered. Since the total mix variance is adverse for the Safe Soap Co, this mea 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 necess explain any quality issues which arise because of the change in mix. The consequences of the change may well have an impact on sales volumes. In Safe Soap Co’s case, the sales volume variance is adverse, meaning that sales volumes have fallen in October. It is not known whether they also fell in September but it would be usual for the effects on sal of the change in mix to be slightly delayed, in this case by one month, given that it is only once the customers receiving 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 be en received, the sales manager’s views should be taken on board.Fundamentals Level – Skills Module, Paper F5 Performance ManagementDecember 2014 Marking SchemeSection AMarks 2 marks per question 40 ––– –––Section B 1(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 unit Cost for 8th unit Total cost 1 0·5 1 0·5 0·5 0·5 0·5 Price0·5 ––– 5 ––– (b) (i) Learning rateCalculating learning rateSaying whether better or worse2·5 0·5 ––– 3 ––– (ii) Effect on price2 ––– Total marks10 ––– ––– 2(a) (b)Calculation and justification of bottleneckExplanation of bottleneck 3 1 ––– 4 ––– TPARThroughput1 1 1 1 Throughput per bottleneck hour Total salon costs Cost per hour TPAR2 ––– 6 ––– Total marks10 ––– ––– 3Fabric calculation Fabric reason Wood calculation 0·5 0·5 1 Wood reason1 Skilled labour calculation Skilled labour reason1 1 Semi-skilled labour calculation Semi-skilled labour reason Factory overheads calculation Factory overheads reasonAdministration overheads reasonTotal relevant cost (lowest cost estimate) 0·5 1 0·5 1·5 1 0·5 ––– Total marks10 ––– –––Marks 4 (a)(b)PerspectivesExplanation for each perspective 1·5–––6–––Goals and measuresEach goal/measure/explanationPresentation and structure21–––9–––Total marks 15––––––5 (a)(b)Variance calculationsMix varianceQuantity variance44–––8–––(i) VariancesMarks per variance explained 2–––4–––(ii) DiscussionPer valid point 1–––3–––Total marks 15––––––。
2015年12月ACCA考试F5业绩管理真题SB部分_真题(含答案与解析)-交互
2015年12月ACCA考试F5业绩管理真题（SectionB部分）(总分60, 做题时间195分钟)Section BThe Chemical Free Clean Co (C Co) provides a range ofenvironmentally-friendly cleaning services to business customers, often providing a specific service to meet a client's needs. Its customers range from large offices and factories to specialist care wards at hospitals, where specialist cleaning equipment must be used and regulations adhered to. C Co offers both regular cleaning contracts and contracts for one-off jobs. For example, its latest client was a chain of restaurants which employed them to provide an extensive clean of all their business premises after an outbreak of food poisoning.The cleaning market is **petitive, although there are only a small number of companies providing a chemical free service. C Co has always used cost-plus pricing to determine the prices which it charges to its customers but recently, the cost of the cleaning products C Co uses has increased. This has meant that C Co has had to increase its prices, resulting in the loss of several regular customers to competing service providers.The finance director at C Co has heard about target costing and is considering whether it could be useful at C Co.Required:SSS_TEXT_QUSTI(a) Briefly describe the main steps involved in deriving a target cost.该题您未回答:х该问题分值: 3答案:Target costing stepsDeriving a target costStep 1: A product or service is developed which 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 oninvestment.Step 4: The target cost is derived by subtracting the target profit from the target price.Step 5: If there is a cost gap, attempts will be made to close the gap. Techniques 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.SSS_TEXT_QUSTI(b) Explain any difficulties which may be encountered and any benefits which may arise when implementing target costing at C Co.该题您未回答:х该问题分值: 7答案:Application at C CoDifficulties in implementation– C Co is a **pany and in **panies, it is often more difficult to find a precise definition for some of the services. In order for target costing to be useful, it is necessary to define the service being provided. C Co actually provides a range of services toclients including specialist care wards at hospitals. This meansthat the definition of the services being provided will vary. Different target costs will need to be derived for the different services provided.– C Co has two types of clients: regular clients and one-off clients. Since the service for regular clients is being repeated, it should be relatively easy to set a target cost for these jobs. However, for the one-off jobs, there may not be **parative data available and therefore setting the target cost will be difficult. – Similarly, some of the work available is very specialist. For example, cleaning restaurants and kitchens after an outbreak of food poisoning will require specialist techniques and adherence to a set of regulations with which C Co may not be familiar. It may be difficult to establish the market price for a service like this, thus making it difficult to derive a target cost.Benefits to C Co– Target costing is useful in competitive markets where a companyis not dominant in the market and therefore has to accept a marketprice for their products. C Co is operating in a competitive market and whilst the service offered by C Co is more specialist, it is clear from the recent drop in sales that price increases do lead to loss of customers. C Co cannot therefore ignore the market price for cleaning services and simply pass on cost increases as it has done. Target costing would therefore help C Co to focus on the marketprice of similar services provided by competitors, where this information is available.– If after calculating a target cost C Co finds that a cost gap exists, it will then be forced to examine its internal processes and costs more closely. It should establish why the prices of the products it uses have increased in the first place. If it cannot achieve any reduction in these prices, it should consider whether it can source cheaper non-chemical products from alternative suppliers. So, target costing will benefit C Co by helping it to focus on cost reduction and consequently customer retention.Note: More points could be made and would earn marks.Bus Co is a large bus operator, operating long-distance bus services across the country. There are two other national operators in the country. Bus Co's mission is to ‘be the market leader in long-distance transport providing a greener, cleaner service for passengers nationwide’. Last month, an independent survey of 40,000 passengers was carried out, the results of which are shown in the table below:Table: Bus passenger satisfaction % by national operator* denotes that the percentage has not yet been calculated.The ‘overall satisfaction’ percentages, which have not yet been inserted into the table, are calculated using a weighted average which reflects the importance customers place on each of the other three criteria above. The weightings used are as follows:The managing director (MD) of Bus Co has said: ‘Independent research has shown that our customers are the most satisfied of any national bus operator. We are now leading the way on what matters most to customers –value for money and punctuality.’Required:SSS_TEXT_QUSTI(a) Calculate the ‘overall satisfaction’ percentage for each operator.该题您未回答:х该问题分值: 2答案:CalculationsBus: (0·4 × 0·67) + (0·32 × 0·8) + (0·28 × 0·82) = 75·36%. Prime: (0·4 × 0·58) + (0·32 × 0·76) + (0·28 × 0·83) = 70·76%.Express: (0·4 × 0·67) + (0·32 × 0·76) + (0·28 × 0·89) = 76·04%.SSS_TEXT_QUSTI(b) Taking into account all the data in the table and your calculations from part (a), discuss whether the managing director's statement is true.该题您未回答:х该问题分值: 4答案:Accuracy of statementThe MD's statement says that Bus Co's customers are the mostsatisfied of any national bus operator. However, this is not quite the case since, when the ‘overall satisfaction’ levels are calculated, Express's level is 76·04% compared to Bus Co's 75·36%. So, the first part of the MD's statement is untrue.The MD then goes on to say that Bus Co is leading the way on what matters most to customers – value for money and punctuality. Given the weightings attached to these two criteria, it appears true to say that these are the factors which matter most to customers. Similarly, it is true to say that Bus Co is leading as regards punctuality, being 4 percentage points ahead of Prime and Express on this criterion. However, given that Express also has the same level of satisfaction as regards offering value for money, Bus Co is only leading ahead of Prime on this criterion, not ahead of Express. Therefore, whilst it can say that it is the leader on punctuality, it can only say that it is the joint leader on value for money.SSS_TEXT_QUSTI(c)When measuring performance using a ‘value for money’ approach, the criteria of economy, efficiency and effectiveness can be used. Required:Briefly define ‘efficiency’ and ‘effectiveness’ and suggest one performance measure for EACH, which would help Bus Co assess the efficiency and effectiveness of the service it provides.该题您未回答:х该问题分值: 4答案:VFM‘Efficiency’ focuses on the relationship between inputs and outputs, considering whether the maximum output is being achieved for the resources used.Performance measure:Occupancy rate of buses.Utilisation rate for buses.(utilisation rate = hours on theroad/total hours available)Utilisation rate for drivers.(Many others could be given too but only one was asked for.)‘Effectiveness’ focuses on the relationship between anorganisation's objectives and outputs, considering whether the objectives are being met.Possible performance measures:Percentage of customers satisfied with cleanliness of buses. Percentage of carbon emissions relative to target set.(Many others could be given too but only one was asked for.)The Organic Bread Company (OBC) makes a range of breads for sale direct to the public. The production process begins with workers weighing out ingredients on electronic scales and then placing themin a machine for mixing. A worker then manually removes the mix from the machine and shapes it into loaves by hand, after which the bread is then placed into the oven for baking.All baked loaves are then inspected by OBC's quality inspector before they are packaged up and made ready for sale. Any loaves which fail the inspection are donated to a local food bank.The standard cost card for OBC's ‘Mixed Bloomer’, one of its most popular loaves, is as follows:Budgeted production of Mixed Bloomers was 1,000 units for the quarter, although actual production was only 950 units. The total actual quantities used and their actual costs were:Required:SSS_TEXT_QUSTI(a) Calculate the total material mix variance and the total material yield variance for OBC for the last quarter.该题您未回答:х该问题分值: 7答案:Variance calculationsMix variancePer question, total g of materials per standard batch = 610 g. Therefore standard quantity to produce 950 units = 950 × 610 g = 579·5 kgPer question, actual total kg of materials used to produce 950 units = 570·5 kgAlternative yield calculation570·5 kg should yield (÷ 0·61 kg) = 935·25 loaves570·5 kg did yield = 950 loavesDifference = 14·75 FValued a t standard material cost = 14·75F × $1·34 = $19·77FSSS_TEXT_QUSTI(b) Using the information in the question, suggest THREE possible reasons why an ADVERSE MATERIAL YIELD variance could arise at OBC.该题您未回答:х该问题分值: 3答案:Material yield varianceThree reasons why an adverse material yield variance may arise:– The mix may not be **pletely out of the machine, leaving some mix behind.– Since the loaves are made by hand, they may be made slightly too large, meaning that fewer loaves can be baked.– Errors or changes in the mix may cause some loaves to be sub-standard and therefore rejected by the quality inspector.– The loaves might be baked at the wrong temperature and therefore be rejected by the quality inspector.Note: Many more reasons could be given.Cardio Co manufactures three types of fitness equipment: treadmills (T), cross trainers (C) and rowing machines (R). The budgeted sales prices and volumes for the next year are as follows:The standard cost card for each product is shown below.Labour costs are 60% fixed and 40% variable. General fixed overheads excluding any fixed labour costs are expected to be $55,000 for the next year.Required:SSS_TEXT_QUSTI(a) Calculate the weighted average contribution to sales ratio for Cardio Co.该题您未回答:х该问题分值: 4答案:Weighted average C/S ratioWeighted average contribution to sales ratio (WA C/S ratio) = total contribution/total sales revenue.WA C/S ratio = ($408,240 + $433,600 + $330,220)/($672,000 + $720,000 + $532,000)= $1,172,060/$1,924,000 = 60·92%.SSS_TEXT_QUSTI(b) Calculate the margin of safety in $ revenue for Cardio Co.该题您未回答:х该问题分值: 3答案:Margin of safetyMargin of safety = budgeted sales – breakeven salesBudgeted sales revenue = $1,924,000Fixed labour costs = {(420 × $220) + (400 × $240) + (380 × $190)} × 0·6 = $156,360k.Therefore total fixed costs = $156,360 + $55,000 = $211,360. Breakeven sales revenue = fixed costs/weighted average C/S ratio= $211,360/60·92% = $346,947Therefore margin of safety = $1,924,000 – $346,947 = $1,577,053.SSS_TEXT_QUSTI(c) Using the graph paper provided and assuming that the products are sold in a CONSTANT MIX, draw a multi-product breakeven chart for Cardio Co. Label fully both axes, any lines drawn on the graph and the breakeven point.该题您未回答:х该问题分值: 6答案:Multi-product breakeven chartWorkingsTotal revenue = $1,924,000.Total variable costs = $1,924,000 – $1,172,060 = $751,940. Therefore total costs = $211,360 + $751,940 = $963,300.SSS_TEXT_QUSTI(d) Explain what would happen to the breakeven point if the products were sold in order of the most profitable products first.Note: You are NOT required to demonstrate this on the graph drawn in part (c).该题您未回答:х该问题分值: 2答案:BEP if products sold in order of profitabilityIf the more profitable products are sold first, this means that**pany will cover its fixed costs more quickly. Consequently, the breakeven point will be reached earlier, i.e. fewer sales will need to be made in order to break even. So, the breakeven point will be lower.Cardale Industrial Metal Co (CIM Co) is a large supplier ofindustrial metals. **pany is split into two divisions: Division F and Division N. Each division operates separately as an investment centre, with each one having full control over its non-current assets. In addition, both divisions are responsible for their own current assets, controlling their own levels of inventory and cash and having full responsibility for the credit terms granted to customers and the collection of receivables balances. Similarly, each division has full responsibility for its current liabilities and deals directly with its own suppliers.Each divisional manager is paid a salary of $120,000 per annum plus an annual performance-related bonus, based on the return on investment (ROI) achieved by their division for the year. Each divisional manager is expected to achieve a minimum ROI for their division of 10% per annum. If a manager only meets the 10% target, they are not awarded a bonus. However, for each whole percentage point above 10% which the division achieves for the year, a bonus equivalent to 2% of annual salary is paid, subject to a maximum bonus equivalent to 30% of annual salary.The following figures relate to the year ended 31 August 2015:/During the year ending 31 August 2015, Division N invested $6·8m in new equipment including a technologically advanced cutting machine, which is expected to increase productivity by 8% per annum. Division F has made no investment during the year, although **puter system is badly in need of updating. Division F's manager has said that he hasalready had to delay payments to suppliers (i.e. accounts payables) because of limited cash and **puter system ‘will just have to wait’, although the cash balance at Division F is still better than that of Division N.Required:SSS_TEXT_QUSTI(a) For each division, for the year ended 31 August 2015, calculate the appropriate closing return on investment (ROI) on which the payment of management bonuses will be based. Briefly justify the figures used in your calculations.Note: There are 3 marks available for calculations and 2 marks available for discussion.该题您未回答:х该问题分值: 5答案:Division FControllable profit = $2,645k.Total assets less trade payables = $9,760k + $2,480k – $2,960k = $9,280k.ROI = 28·5%.Division NControllable profit = $1,970k.Total assets less trade payables = $14,980k + $3,260k – $1,400k = $16,840k.ROI = 11·7%.In both calculations controllable profit has been used to reflect profit, rather than net profit. This is because the managers do not have any control over the Head Office costs and responsibility accounting deems that managers should only be held responsible for costs which they control. The same principle is being applied in the choice of assets figures being used. The current assets and current liabilities figures have been taken into account in the calculation because of the fact that the managers have full control over both of these.SSS_TEXT_QUSTI(b) Based on your calculations in part (a), calculate each manager's bonus for the year ended 31 August 2015.该题您未回答:х该问题分值: 3答案:BonusBonus to be paid for each percentage point = $120,000 × 2% = $2,400. Maximum bonus = $120,000 × 0·3 = $36,000.Division F:ROI = 28·5% = 18 whole percentage points above minimum ROI of 10%.18 × $2,400 = $43,200.Therefore manager will be paid the maximum bonus of $36,000.Division N: ROI = 11·7% = 1 whole percentage point above minimum. Therefore bonus = $2,400.SSS_TEXT_QUSTI(c) Discuss whether ROI is providing a fair basis for calculating the managers' bonuses and the problems arising from its use at CIM Co for the year ended 31 August 2015.该题您未回答:х该问题分值: 7答案:Discussion– The manager of Division N will be paid a far smaller bonus than the manager of Division F. This is because of the large asset base on which the ROI figure has been calculated. Total assets ofDivision N are almost double the total assets of Division F. This is largely attributable to the fact that Division N invested $6·8m in new equipment during the year. If this investment had not been made, net assets would have been only $10·04m and the ROI for Division N would have been 19·62%. This would have led to the payment of a $21,600 bonus (9 × $2,400) rather than the $2,400 bonus. Consequently, Division N's manager is being penalised for making decisions which are in the best interests of his division. It is very surprising that he did decide to invest, given that he knewthat he would receive a lower bonus as a result. He has actedtotally in the best interests of **pany. Division F's manager, onthe other hand, has benefitted from the fact that he has made no investment even though it is badly needed. This is an example ofsub-optimal decision making.– Division F's trade payables figure is much higher than DivisionN's. This also plays a part in reducing the net assets figure on which the ROI has been based. Division F's trade payables are over double those of Division N. In part, one would expect this because sales are over 50% higher (no purchases figure is given). However,it is clear that it is also because of low cash levels at Division F. The fact that the manager of Division F is then being rewardedfor this, even though relationships with suppliers may be adversely affected, is again an example of sub-optimal decision making.– If the co ntrollable profit margin is calculated, it is 18·24%for Division F and 22·64% for Division N. Therefore, if capital employed is ignored, it can be seen that Division N is performing better. ROI is simply making the division's performance look worse because of its investment in assets. Division N's manager is likely to feel extremely demotivated by **paratively small bonus and, in the future, he may choose to postpone investment in order to increase his bonus. Managers not investing in new equipment and technology will mean that **pany will not keep up with industry changes and affect its overall **petitiveness.– To summarise, the use of ROI is leading to sub-optimal decision making and a lack of goal congruence, as what is good for the managers is not good for **pany and vice versa. Luckily, the manager at Division N still appears to be acting for the benefit of **pany but the other manager is not. The fact that one manager is receiving a much bigger bonus than the other is totally unfair here and may lead to conflict in the long run. This is not good for **pany, particularly if **es a time when the divisions need to work together.1。
2010年12月ACCA考试F5真题
2010年12月ACCA考试F5真题ALL FIVE questions are compulsory and MUST be attempted1 Carad Co is an electronics company which makes two types of televisions - plasma screen TVs and LCD TVs. It operates within a highly competitive market and is constantly under pressure to reduce prices. Carad Co operates a standard costing system and performs a detailed variance analysis of both products on a monthly basis. Extracts from the management information for the month of November are shown below: NoteTotal number of units made and sold 1,400 1Material price variance $28,000 A 2Total labour variance $6,050 A 3Notes（1）The budgeted total sales volume for TVs was 1,180 units,consisting of an equal mix of plasma screen TVs and LCD screen TVs. Actual sales volume was 750 plasma TVs and 650 LCD TVs. Standard sales prices are $350 per unit for the plasma TVs and $300 per unit for the LCD TVs.The actual sales prices achieved during November were $330 per unit for plasma TVs and $290 per unit for LCD TVs. The standard contributions for plasma TVs and LCD TVs are $190 and $180 per unit respectively.（2）The sole reason for this variance was an increase in the purchase price of one of its key components， X. Each plasma TV made and each LCD TV made requires one unit of component X,for which Carad Co's standard cost is $60 per unit. Due to a shortage of components in the market place,the market price for November went up to $85 per unit for X. Carad Co actually paid $80 per unit for it.（3）Each plasma TV uses 2 standard hours of labour and each LCD TV uses 1·5 standard hours of labour.The standard cost for labour is $14 per hour and this also reflects the actual cost per labour hour for the company's permanent staff in November. However,because of the increase in sales and production volumes in November,the company also had to use additional temporary labour at the higher cost of $18 per hour.The total capacity of Carad’s permanent workforce is 2,200 hoursproduction per month,assuming full efficiency.In the month of November,the permanent workforce were wholly efficient,taking exactly 2 hours to complete each plasma TV and exactly 1·5 hours to produce each LCD TV.The total labour variance therefore relates solely to the temporary workers,who took twice as long as the permanent workers to complete their production.Required:（a）Calculate the following for the month of November,showing all workings clearly：（i）The sales price variance and sales volume contribution variance; （6 marks）（ii）The material price planning variance and material price operational variance; （2 marks）（iii）The labour rate variance and the labour efficiency variance. （7 marks）（b）Explain the reasons why Carad Co would be interested in the material price planning variance and the material price operational variance. （5 marks）（20 marks）2 The Accountancy Teaching Co（AT Co）is a company specialising in the provision of accountancy tuition courses in the private sector.It makes up its accounts to 30 November each year.In the year ending 30 November 2009,it held 60% of market share.However,over the last twelve months,the accountancy tuition market in general has faced a 20% decline in demand for accountancy training leading to smaller class sizes on courses.In 2009 and before,AT Co suffered from an ongoing problem with staff retention,which had a knock-on effect on the quality of service provided to students.Following the completion of developments that have been ongoing for some time,in 2010 the company was able to offer a far-improved service to students.The developments included:- A new dedicated 24 hour student helpline- An interactive website providing instant support to students- A new training programme for staff- An electronic student enrolment system- An electronic marking system for the marking of students' progress tests.The costs of marking electronically were expected to be $4 million less in 2010 than marking on paper.Marking expenditure is always included in cost of sales Extracts from the management accounts for 2009 and 2010 are shown below:2009 2010$'000 $'000 $'000 $'000 Turnover 72,025 66,028Cost of sales （52,078）（42,056）——————————Gross profit 19,947 23,972 Indirect expenses：Marketing 3,291 4,678Property 6,702 6,690Staff training 1,287 3,396Interactive website running costs - 3，270Student helpline running costs - 2,872Enrolment costs 5,032 960------- -------Total indirect expenses （16,312）（21,866）------- -------Net operating profit 3,635 2,106------- -------On 1 December 2009,management asked all ＆freelance lecturers'to reduce their fees by at least 10% with immediate effect（'freelance lecturers'are not employees of the company but are used to teach students when there are not enough of AT Co's own lecturers to meet tuition needs）.All employees were also told that they would not receive a pay rise for at least one year.Total lecture staff costs（including freelance lecturers）were $41·663 million in 2009 and were included in cost of sales，as is always the case.Freelance lecturer costs represented 35% of these total lecture staff costs.In 2010 freelance lecture costs were $12·394 million.No reduction wasmade to course prices in the year and the mix of trainees studying for the different qualifications remained the same.The same type and number of courses were run in both 2009 and 2010 and the percentage of these courses that was run by freelance lecturers as opposed to employed staff also remained the same.Due to the nature of the business,non-financial performance indicators are also used to assess performance,as detailed below.20092010 Percentage of students transferring to AT Co from another training8% 20% providerNumber of late enrolments due to staff error 297 106 Percentage of students passing exams first time 48% 66% Labour turnover 32% 10% Number of student complaints 315 84 Average no. of employees 1,080 1,081 Required:Assess the performance of the business in 2010 using both financial performance indicators calculated from the above information AND the non-financial performance indicators provided.NOTE:Clearly state any assumptions and show all workings clearly.Your answer should be structured around the following main headings:turnover;cost of sales;gross profit;indirect expenses;net operating profit.However,in discussing each of these areas you should also refer to the non-financial performance indicators,where relevant.（20 marks）3 The Cosmetic Co is a company producing a variety of cosmetic creams and lotions.The creams and lotions are sold to a variety of retailers at a price of $23·20 for each jar of face cream and $16·80 for each bottle of body lotion. Each of the products has a variety of ingredients,with the key ones being silk powder,silk amino acids and aloe vera. Six months ago,silk worms were attacked by disease causing a huge reduction in the availability of silk powder and silk amino acids.The CosmeticCo had to dramatically reduce production and make part of its workforce,which it had trained over a number of years,redundant.The company now wants to increase production again by ensuring that it uses the limited ingredients available to maximise profits by selling the optimum mix of creams and lotions.Due to the redundancies made earlier in the year,supply of skilled labour is now limited in the short-term to 160 hours（9,600 minutes）per week,although unskilled labour is unlimited.The purchasing manager is confident that they can obtain 5,000 grams of silk powder and 1,600 grams of silk amino acids per week.All other ingredients are unlimited.The following information is available for the two products:Cream Lotion Materials required：silk powder （at $2·20 per gram） 3 grams 2 grams- silk amino acids （at $0·80 per gram） 1 gram 0·5 grams- aloe vera （at $1·40 per gram） 4 grams 2 grams Labour required：skilled（$12 per hour） 4 minutes 5 minutes- unskilled （at $8 per hour） 3 minutes 1·5 minutesEach jar of cream sold generates a contribution of $9 per unit,whilst each bottle of lotion generates a contribution of $8 per unit.The maximum demand for lotions is 2,000 bottles per week,although demand for creams is unlimited. ixed costs total $1,800 per week.The company does not keep inventory although if a product is partially complete at the end of one week,its production will be completed in the following week.Required：（a）On the graph paper provided,use linear programming to calculate the optimum number of each product that the Cosmetic Co should make per week,assuming that it wishes to maximise contribution. Calculate the total contribution per week for the new production plan.All workings MUST be rounded to 2 decimal places.（14 marks）（b）Calculate the shadow price for silk powder and the slack for silk amino acids. All workings MUST be rounded to 2 decimal places.（6 marks）（20 marks）4 The Gadget Co produces three products,A,B and C,all made from the same material. Until now,it has used traditional absorption costing to allocate overheads to its products.The company is now considering an activity based costing system in the hope that it will improve rmation for the three products for the last year is as follows:A B C Production and sales volumes （units）15，000 12，000 18，000 Selling price per unit $7.50 $12 $13Raw material usage（kg）per unit 2 3 4Direct labour hours per unit 0. 1 0.15 0.2 Machine hours per unit 0.5 0.7 0.9 Number of production runs per annum 16 12 8Number of purchase orders per annum 24 28 42 Number of deliveries to retailers per annum 48 30 62The price for raw materials remained constant throughout the year at $1.20 per kg. Similarly,the direct labour cost for the whole workforce was $14.80 per hour.The annual overhead costs were as follows:$Machine set up costs 26,550Machine running costs 66,400 Procurement costs 48,000Delivery costs 54,320Required:（a）Calculate the full cost per unit for products A,B and C under traditional absorption costing, using direct labour hours as the basis for apportionment.（5 marks）（b） Calculate the full cost per unit of each product using activity based costing.（9 marks）（c） Using your calculation from（a）and （b）above,explain how activity based costing may help The Gadget Co improve the profitability of each product.（6 marks）5 Some commentators argue that:＆With continuing pressure to control costs and maintain efficiency,the time has come for all public sector organisations to embrace zero-based budgeting.There is no longer a place for incremental budgeting in any organisation,particularly public sector ones,where zero-based budgeting is far more suitable anyway.Required:（a）Discuss the particular difficulties encountered when budgeting in public sector organisations compared with budgeting in private sectororganisations,drawing comparisons between the two types of organisations.（5 marks）（b）Explain the terms ＆incremental budgeting 'and ＆zero-based budgeting'.（4 marks）（c）State the main stages involved in preparing zero-based budgets.（3 marks）（d）Discuss the view that 'there is no longer a place for incremental budgeting in any organisation,particularly public sector ones,'highlighting any drawbacks of zero-based budgeting that need to be considered.（8 marks）（20 marks）Formulae SheetLearning curve。
2011年6月ACCA考试F5真题答案
2011年6月ACCA考试F5真题答案(c) Maximin and expected value decision rules The ‘maximin’decision rule looks at the worst possible outcome at each supply level and then selects the highest one of these. It is used when the outcome cannot be assessed with any level of certainty. The decision maker therefore chooses the outcome which is guaranteed to minimise his losses. In the process, he loses out on the opportunity of making big profits. It is often seen as the pessimistic approach to decision-making (assuming that the worst outcome will occur) and is used by decision makers who are risk averse. It can be used for one-off or repeated decisions.The ‘expected value’rule calculates the average return that will be made if a decision is repeated again and again. It does this by weighting each of the possible outcomes with their relative probability of occurring. It is the weighted arithmetic mean of the possible outcomes.Since the expected value shows the long run average outcome of adecision which is repeated time and time again, it is a useful decision rule for a risk neutral decision maker. This is because a risk neutral person neither seeks risk or avoids it; they are happy to accept an average outcome. The problem often is, however, that this rule is often used for decisions that only occur once. In this situation, the actual outcome is unlikely to be close to the long run average. For example, with Cement Co, the closest actual outcome to the expected value of $1,172,000 is the outcome of $1,085,000. This is not too far away from the expected value but many of the others are really different.。
2010年12月ACCA考试F5真题
2010年12月ACCA考试F5真题ALL FIVE questions are compulsory and MUST be attempted1 Carad Co is an electronics company which makes two types of televisions - plasma screen TVs and LCD TVs. It operates within a highly competitive market and is constantly under pressure to reduce prices. Carad Co operates a standard costing system and performs a detailed variance analysis of both products on a monthly basis. Extracts from the management information for the month of November are shown below: NoteTotal number of units made and sold 1,400 1Material price variance $28,000 A 2Total labour variance $6,050 A 3Notes（1）The budgeted total sales volume for TVs was 1,180 units,consisting of an equal mix of plasma screen TVs and LCD screen TVs. Actual sales volume was 750 plasma TVs and 650 LCD TVs. Standard sales prices are $350 per unit for the plasma TVs and $300 per unit for the LCD TVs.The actual sales prices achieved during November were $330 per unit for plasma TVs and $290 per unit for LCD TVs. The standard contributions for plasma TVs and LCD TVs are $190 and $180 per unit respectively.（2）The sole reason for this variance was an increase in the purchase price of one of its key components， X. Each plasma TV made and each LCD TV made requires one unit of component X,for which Carad Co's standard cost is $60 per unit. Due to a shortage of components in the market place,the market price for November went up to $85 per unit for X. Carad Co actually paid $80 per unit for it.（3）Each plasma TV uses 2 standard hours of labour and each LCD TV uses 1·5 standard hours of labour.The standard cost for labour is $14 per hour and this also reflects the actual cost per labour hour for the company's permanent staff in November. However,because of the increase in sales and production volumes in November,the company also had to use additional temporary labour at the higher cost of $18 per hour.The total capacity of Carad’s permanent workforce is 2,200 hoursproduction per month,assuming full efficiency.In the month of November,the permanent workforce were wholly efficient,taking exactly 2 hours to complete each plasma TV and exactly 1·5 hours to produce each LCD TV.The total labour variance therefore relates solely to the temporary workers,who took twice as long as the permanent workers to complete their production.Required:（a）Calculate the following for the month of November,showing all workings clearly：（i）The sales price variance and sales volume contribution variance; （6 marks）（ii）The material price planning variance and material price operational variance; （2 marks）（iii）The labour rate variance and the labour efficiency variance. （7 marks）（b）Explain the reasons why Carad Co would be interested in the material price planning variance and the material price operational variance. （5 marks）（20 marks）2 The Accountancy Teaching Co（AT Co）is a company specialising in the provision of accountancy tuition courses in the private sector.It makes up its accounts to 30 November each year.In the year ending 30 November 2009,it held 60% of market share.However,over the last twelve months,the accountancy tuition market in general has faced a 20% decline in demand for accountancy training leading to smaller class sizes on courses.In 2009 and before,AT Co suffered from an ongoing problem with staff retention,which had a knock-on effect on the quality of service provided to students.Following the completion of developments that have been ongoing for some time,in 2010 the company was able to offer a far-improved service to students.The developments included:- A new dedicated 24 hour student helpline- An interactive website providing instant support to students- A new training programme for staff- An electronic student enrolment system- An electronic marking system for the marking of students' progress tests.The costs of marking electronically were expected to be $4 million less in 2010 than marking on paper.Marking expenditure is always included in cost of sales Extracts from the management accounts for 2009 and 2010 are shown below:2009 2010$'000 $'000 $'000 $'000 Turnover 72,025 66,028Cost of sales （52,078）（42,056）——————————Gross profit 19,947 23,972 Indirect expenses：Marketing 3,291 4,678Property 6,702 6,690Staff training 1,287 3,396Interactive website running costs - 3，270Student helpline running costs - 2,872Enrolment costs 5,032 960------- -------Total indirect expenses （16,312）（21,866）------- -------Net operating profit 3,635 2,106------- -------On 1 December 2009,management asked all ＆freelance lecturers'to reduce their fees by at least 10% with immediate effect（'freelance lecturers'are not employees of the company but are used to teach students when there are not enough of AT Co's own lecturers to meet tuition needs）.All employees were also told that they would not receive a pay rise for at least one year.Total lecture staff costs（including freelance lecturers）were $41·663 million in 2009 and were included in cost of sales，as is always the case.Freelance lecturer costs represented 35% of these total lecture staff costs.In 2010 freelance lecture costs were $12·394 million.No reduction wasmade to course prices in the year and the mix of trainees studying for the different qualifications remained the same.The same type and number of courses were run in both 2009 and 2010 and the percentage of these courses that was run by freelance lecturers as opposed to employed staff also remained the same.Due to the nature of the business,non-financial performance indicators are also used to assess performance,as detailed below.20092010 Percentage of students transferring to AT Co from another training8% 20% providerNumber of late enrolments due to staff error 297 106 Percentage of students passing exams first time 48% 66% Labour turnover 32% 10% Number of student complaints 315 84 Average no. of employees 1,080 1,081 Required:Assess the performance of the business in 2010 using both financial performance indicators calculated from the above information AND the non-financial performance indicators provided.NOTE:Clearly state any assumptions and show all workings clearly.Your answer should be structured around the following main headings:turnover;cost of sales;gross profit;indirect expenses;net operating profit.However,in discussing each of these areas you should also refer to the non-financial performance indicators,where relevant.（20 marks）3 The Cosmetic Co is a company producing a variety of cosmetic creams and lotions.The creams and lotions are sold to a variety of retailers at a price of $23·20 for each jar of face cream and $16·80 for each bottle of body lotion. Each of the products has a variety of ingredients,with the key ones being silk powder,silk amino acids and aloe vera. Six months ago,silk worms were attacked by disease causing a huge reduction in the availability of silk powder and silk amino acids.The CosmeticCo had to dramatically reduce production and make part of its workforce,which it had trained over a number of years,redundant.The company now wants to increase production again by ensuring that it uses the limited ingredients available to maximise profits by selling the optimum mix of creams and lotions.Due to the redundancies made earlier in the year,supply of skilled labour is now limited in the short-term to 160 hours（9,600 minutes）per week,although unskilled labour is unlimited.The purchasing manager is confident that they can obtain 5,000 grams of silk powder and 1,600 grams of silk amino acids per week.All other ingredients are unlimited.The following information is available for the two products:Cream Lotion Materials required：silk powder （at $2·20 per gram） 3 grams 2 grams- silk amino acids （at $0·80 per gram） 1 gram 0·5 grams- aloe vera （at $1·40 per gram） 4 grams 2 grams Labour required：skilled（$12 per hour） 4 minutes 5 minutes- unskilled （at $8 per hour） 3 minutes 1·5 minutesEach jar of cream sold generates a contribution of $9 per unit,whilst each bottle of lotion generates a contribution of $8 per unit.The maximum demand for lotions is 2,000 bottles per week,although demand for creams is unlimited. ixed costs total $1,800 per week.The company does not keep inventory although if a product is partially complete at the end of one week,its production will be completed in the following week.Required：（a）On the graph paper provided,use linear programming to calculate the optimum number of each product that the Cosmetic Co should make per week,assuming that it wishes to maximise contribution. Calculate the total contribution per week for the new production plan.All workings MUST be rounded to 2 decimal places.（14 marks）（b）Calculate the shadow price for silk powder and the slack for silk amino acids. All workings MUST be rounded to 2 decimal places.（6 marks）（20 marks）4 The Gadget Co produces three products,A,B and C,all made from the same material. Until now,it has used traditional absorption costing to allocate overheads to its products.The company is now considering an activity based costing system in the hope that it will improve rmation for the three products for the last year is as follows:A B C Production and sales volumes （units）15，000 12，000 18，000 Selling price per unit $7.50 $12 $13Raw material usage（kg）per unit 2 3 4Direct labour hours per unit 0. 1 0.15 0.2 Machine hours per unit 0.5 0.7 0.9 Number of production runs per annum 16 12 8Number of purchase orders per annum 24 28 42 Number of deliveries to retailers per annum 48 30 62The price for raw materials remained constant throughout the year at $1.20 per kg. Similarly,the direct labour cost for the whole workforce was $14.80 per hour.The annual overhead costs were as follows:$Machine set up costs 26,550Machine running costs 66,400 Procurement costs 48,000Delivery costs 54,320Required:（a）Calculate the full cost per unit for products A,B and C under traditional absorption costing, using direct labour hours as the basis for apportionment.（5 marks）（b） Calculate the full cost per unit of each product using activity based costing.（9 marks）（c） Using your calculation from（a）and （b）above,explain how activity based costing may help The Gadget Co improve the profitability of each product.（6 marks）5 Some commentators argue that:＆With continuing pressure to control costs and maintain efficiency,the time has come for all public sector organisations to embrace zero-based budgeting.There is no longer a place for incremental budgeting in any organisation,particularly public sector ones,where zero-based budgeting is far more suitable anyway.Required:（a）Discuss the particular difficulties encountered when budgeting in public sector organisations compared with budgeting in private sectororganisations,drawing comparisons between the two types of organisations.（5 marks）（b）Explain the terms ＆incremental budgeting 'and ＆zero-based budgeting'.（4 marks）（c）State the main stages involved in preparing zero-based budgets.（3 marks）（d）Discuss the view that 'there is no longer a place for incremental budgeting in any organisation,particularly public sector ones,'highlighting any drawbacks of zero-based budgeting that need to be considered.（8 marks）（20 marks）Formulae SheetLearning curve。
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––––––。
ACCA模拟试题--F5
F5 – Performance ManagementHomework Assignment 2 - QuestionMOC makes and sells two types of executive games, ‘Metropolis’ and ‘Hedge Your Bets’. The company currently has a monopoly for both games. This factor combined with the high quality of the games and the luxury brand image has resulted in MOC being able to charge high prices for each of the games.The management accountant is considering increasing the price for the Metropolis game and has produced the following information:At the current selling price of $55 per game, weekly sales of the Metropolis are 900 units.If the price is increased to $70 per game, weekly demand for the Metropolis will fall to 750 units. The Hedge Your Bets game is sold in two distinct markets. The management accountant believes that there should be price discrimination. The price is currently $80 per game in either market.Required:(a) Explain the term ‘price-discrimination’ and discuss the conditions that are necessary for the successful operation of this pricing strategy. (4 marks)(b) Find the linear relationship between price (P) and quantity demanded (Q) for the Metropolis game. (3 marks)(c) Calculate the price elasticity of demand (PED) for the Metropolis and comment on whether the revenue will increase or decrease if the price is increased from $55 to $70 per game. (3 marks)(d) Write a report to the management accountant to explain how the pricing strategy may change if new competitors enter the market. Include, as part of your answer, a discussion of the different pricing strategies that may be implemented by MOC or its competitors. (10 marks)(Total: 20 marks)。
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––––––。
ACCA F5 机考 PartD 答案
(a)Controllable profitdivision P division O$'000$'000revenue1400018800direct labor (2400)(3500)direct materials(4800)(6500)division overheads(uncontrollable depreciation)(3480)(4740)Exchange gain/loss(200)460Net division profit31204520Net assets controlled by the divisionsNCA controlled by division1540020700inventories18003900trade receivables62008900overdraft(500)Trade payables(5100)(7200)Net controllable assets1780026300(b)The ROIs have been calculated by applying the principle"controllablity".This prifor areas which they can control.This means that,when calculating profit for the should be controllable by the manager.Similarly,when calculating net assets for tcan control should be included.Gain on sale of equipmentThis has been excluded from the profit figure as the decision to dispose of a larThe divisional manager had no control over this decision.Divisional overheadsThe depreciation on HO controlled assets have been excluded when calculating profdo not control some of the assetsExchange gain/lossthese have been left in when arriving at a profit figure for ROI purpose.This isthe overseas customers 60 day's credit and it is this delay between thegain or loss.The managers make the choice to deal with these customers so they haExceptional cost of factory closureThe effect of this has been removed from the profit calculation as this decision It was therefore beyond his control and its effect should be excluded.Allocated Head Office coststhese have been excluded when calculating profit as the divisional managers haveNCA controlled by head officethese have been excluded from the net assets calculation as these assests are not (c )Investment centersAn investment center is a type of responsibilility center in which managers havefor investment in working capital and NCA.Both divisions do have responsibility fof the assets.(d)Problems of using ROIsthe percentage increases as assets get older.based on accounting profits,which are subjective,rather than cash flows,it does not take into account the cost of capital.it is not consistent with maxmiROIdivision P17.53%division O17.19%1250rollablity".This principle states that managers should only be held accountableating profit for the purposes of calculating ROI,the only revenues and costs included ting net assets for the ROI calculation,only assets which the divisional managers spose of a large amount of equipment in DivisionP was taken by Head Office. when calculating profit for ROI purposes.Again,this is because divisional managersROI purpose.This is because the scenario states that the division choose to give the point of sale and the point of payment which gives rise to the exchangecustomers so they have control here.this decision was made by Head Office,not the manager of division 0ed.sional managers have no control over these and should not be held accountable for them. these assests are not under the control of the division managers.which managers have responsibility for not only sales prices,volume and costs but also have responsibility for working capital.However,they only have responsibility over somecash flows,It is therefore open to manipulation. consistent with maxmising returns to investors.。
ACCA考试F5模拟测试题目答案
AnswersFundamentals Level – Skills Module, Paper F5Performance Management December 2010 Answers1 (a) (i) Sales price variance and sales volume varianceSales price variance = (actual price – standard price) x actual volumeActual Standard Difference Actual Salesprice price volume priceVariance$ $ $ $Plasma TVs 330 350 –20 750 15,000 ALCD TVs 290 300 –10 650 6,500 A–––––––21,500 A–––––––Sales volume contribution variance = (actual sales volume – budgeted sales volume) x standard margin Actual Budgeted Difference Standard Salessales sales margin volumevolume volume variance$ $Plasma TVs 750 590 160 190 30,400 FLCD TVs 650 590 60 180 10,800 F–––––––––––––––––––1,400 1,180 41,200 F–––––––––––––––––––(ii) Material price planning and purchasing operational variancesMaterial planning variance = (original target price – general market price at time of purchase) x quantity purchased($60 – $85) x 1,400 = $35,000 A.Material price operational variance = (general market price at time of purchase – actual price paid) x quantity purchased.($85 – $80) x 1,400 = $7,000 F.(iii) Labour rate and labour efficiency variancesLabour rate variance = (standard labour rate per hour – actual labour rate per hour) x actual hours worked.Actual hours worked by temporary workers:Total hours needed if staff were fully efficient = (750 x 2) + (650 x 1·5) = 2,475.Permanent staff provide 2,200 hours therefore excess = 2,475 – 2,200 = 275.However, temporary workers take twice as long, therefore hours worked = 275 x 2 = 550Labour rate variance relates solely to temporary workers, therefore ignore permanent staff in the calculation.Labour rate variance = ($14 – $18) x 550 = $2,200 A.Labour efficiency variance = (standard labour hours for actual production – actual labour hours worked) xstandard rate.(275 – 550) x $14 = $3,850 A.(b) Explanation of planning and operational variancesBefore the material price planning and operational variances were calculated, the only information available as regardsmaterial purchasing was that there was an adverse material price variance of $28,000. The purchasing department will beassessed on the basis of this variance, yet, on its own, it is not a reliable indicator of the purchasing department’s efficiency.The reason it is not a reliable indicator is because market conditions can change, leading to an increase in price, and thischange in market conditions is not within the control of the purchasing department.By analysing the materials price variance further and breaking it down into its two components – planning and operational –the variance actually becomes a more useful assessment tool. The planning variance represents the uncontrollable elementand the operational variance represents the controllable element.The planning variance is a really useful for providing feedback on just how skilled management are in estimating future prices.This can be very easy in some businesses and very difficult in others.The operational variance is more meaningful in that it mea sures the purchasing department’s efficiency given the marketconditions that prevailed at the time. It therefore ignores factors that the purchasing department cannot control, which in turn,stops staff from becoming demotivated.112 TurnoverTurnover has decreased from $72·025 million in 2009 to $66·028 million in 2010, a fall of 8·3%. However, this must beassessed by taking into account the change in market conditions, since there has been a 20% decline in demand for accountancytraining. Given this 20% decline in the market place, AT Co’s turnover would have been expected to fall to $57·62m if it had keptin line with market conditions. Comparing AT Co’s actual turnover to this, it’s actual turnover is 14·6% higher than expected. Assuch, AT Co has performed fairly well, given market conditions.It can also be seen from the non-financial performance indicators that 20% of students in 2010 are students who have transferredover from alternative training providers. It is likely that they have transferred over because they have heard about the improvedservice that AT Co is providing. Hence, they are most likely the reason for the increased market share that AT Co has managed tosecure in 2010.Cost of salesCost of sales has decreased by 19·2% in 2010. This must be considered in relation to the decrease in turnover as well. In 2009,cost of sales represented 72·3% of turnover and in 2010 this figure was 63·7%. This is quite a substantial decrease. The reasonsfor it can be ascertained by, firstly, looking at the freelance staff costs.In 2009, the freelance costs were $14·582m. Given that a minimum 10% reduction in fees had been requested to freelancelecturers and the number of courses run by them was the same year on year, the expected cost for freelance lecturers in 2010 was$13·124m. The actual costs were $12·394m. These show that a fee reduction of 15% was actually achieved. This can be seenas a successful reduction in costs.The expected cost of sales for 2010 before any cost cuts, was $47·738m assuming a consistent ratio of cost of sales to turnover.The actual cost of sales was only $42·056m, $5·682m lower. Since freelance lecturer costs fell by $2·188m, this means thatother costs of sale fell by the remaining $3·494m. Staff costs are a substantial amount of this balance but since there was a payfreeze and the average number of employees hardly changed from year to year, the decreased costs are unlikely to be related tostaff costs. The decrease is therefore most probably attributable to the introduction of online marking. AT Co expected the onlinemarking system to cut costs by $4m, but it is probable that the online marking did not save as much as possible, hence the$3·494m fall. Alternatively, the saved marking costs may have been partially counteracted by an increase in some other costincluded in cost of sales.Gross profitAs a result of the above, the gross profit margin has increased in 2010 from 27·7% to 36·3%. This is a big increase and reflectsvery well on management.Indirect expenses– Marketing costs: These have increased by 42·1% in 2010. Although this is quite significant, given all the improvements thatAT Co has made to the service it is providing, it is very important that potential students are made aware of exactly what thecompany now offers. The increase in marketing costs has been rewarded with higher student numbers relative to thecompetition in 2010 and these will hopefully continue increasing next year, since many of the benefits of marketing won’t befelt until the next year anyway. The increase should therefore be viewed as essential expenditure rather than a cost that needsto be reduced.– Property costs: These have largely stayed the same in both years.– Staff training: These costs have increased dramatically by over $2 million, a 163·9% increase. However, AT Co had identifiedthat it had a problem with staff retention, which was leading to a lower quality service being provided to students. Also, dueto the introduction of the interactive website, the electronic enrolment system and the online marking system, staff wouldhave needed training on these areas. If AT Co had not spent this money on essential training, the quality of service wouldhave deteriorated further and more staff would have left as they became increasingly dissatisfied with their jobs. Again,therefore, this should be seen as essential expenditure.Given that the number of student complaints has fallen dramatically in 2010 to 84 from 315, the staff training appears tohave improved the quality of service being provided to students.– Interactive website and the student helpline: These costs are all new this year and result from an attempt to improve thequality of service being provided and, presumably, improve pass rates. Therefore, given the increase in the pass rate for firsttime passes from 48% to 66% it can be said that these developments have probably contributed to this. Also, they haveprobably played a part in attracting new students, hence improving turnover.– Enrolment costs have fallen dramatically by 80·9%. This huge reduction is a result of the new electronic system beingintroduced. This system can certainly be seen as a success, as not only has it dramatically reduced costs but it has alsoreduced the number of late enrolments from 297 to 106.Net operating profitThis has fallen from $3·635m to $2·106m. On the face of it, this looks disappointing but it has to be remembered that AT Co hasbeen operating in a difficult market in 2010. It could easily have been looking at a large loss. Going forward, staff training costswill hopefully decrease. Also, market share may increase further as word of mouth spreads about improved results and service atAT Co. This may, in turn, lead to a need for less advertising and therefore lower marketing costs.12It is also apparent that AT Co has provided the student website free of charge when really, it should have been charging a fee forthis. The costs of running it are too high for the service to be provided free of charge and this has had a negative impact on netoperating profit.Note: Students would not have been expected to write all this in the time available.Workings (Note: All workings are in $'000)1. TurnoverDecrease in turnover = $72,025 – $66,028/$72,025 = 8·3%Expected 2010 turnover given 20% decline in market = $72,025 x 80% = $57,620Actual 2010 turnover CF expected = $66,028 – $57,620/$57,620 = 14·6% higher2. Cost of salesDecrease in cost of sales = $42,056 – $52,078/$52,078 = 19·2%Cost of sales as percentage of turnover: 2009 = $52,078/$72,025 = 72·3%2010 = $42,056/$66,028 = 63·7%Freelance staff costs: in 2009 = $41,663 x 35% = $14,582Expected cost for 2010 = $14,582 x 90% = $13,124Actual 2010 cost = $12,394$12,394 – $14,582 = $2,188 decrease$2,188/$14,582 = 15% decrease in freelancer costsExpected cost of sales for 2010, before costs cuts, = $66,028 x 72·3% = $47,738.Actual cost of sales = $42,056.Difference = $5,682, of which $2,188 relates to freelancer savings and $3,494 relates to other savings.3. Gross profit margin2009: $19,947/$72,025 = 27·7%2010: $23,972/$66,028 = 36·3%4. Increase in marketing costs = $4,678 – $3,291/$3,291 = 42·1%5. Increase in staff training costs = $3,396 – $1,287/$1,287 = 163·9%6. Decrease in enrolment costs = $960 – 5,032/5,032 = 80·9%7. Net operating profitDecreased from $3,635 to $2,106. This is fall of 1,529/3,635 = 42·1%3 (a) Optimum production planDefine the variablesLet x = no. of jars of face cream to be producedLet y = no. of bottles of body lotion to be producedLet C = contributionState the objective functionThe objective is to maximise contribution, CC = 9x + 8yState the constraintsSilk powder 3x + 2y δ 5,000Silk amino acids 1x + 0·5y δ 1,600Skilled labour 4x + 5y δ 9,600Non-negativity constraints:x, y ε 0Sales constraint:y δ 2,000Draw the graphSilk powder 3x + 2y = 5,000If x = 0, then 2y = 5,000, therefore y = 2,500If y = 0, then 3x = 5,000, therefore x = 1,666·7Silk amino acids 1x +0·5y = 1,600If x = 0, then 0·5y = 1,600, therefore y = 3,200If y = 0, then x = 1,600Skilled labour 4x + 5y = 9,600If x = 0, then 5y = 9,600, therefore y = 1,920If y = 0, then 4x = 9,600, therefore x = 2,40013Solve using iso-contribution lineIf y =800 and x = 0, then if C = 9x + 8yC = (8 x 800) = 6,400Therefore, if y = 0, 9x = 6,400Therefore x = 711·11Using the iso-contribution line, the furthest vertex from the origin is point c, the intersection of the constraints for skilled labourand silk powder.Solving the simultaneous equations for these constraints:4x + 5y = 9,600 x 33x + 2y = 5,000 x 412x + 15y = 28,80012x + 8y = 20,000Subtract the second one from the first one7y = 8,800, therefore y = 1,257·14.If y = 1,257·14 and:4x + 5y = 9,600Then 5 x 1,257·14 + 4x = 9,600Therefore x= 828·58If C = 9x + 8yC = $7,457·22 + $10,057·12 = $17,514·34143,5003,0002,5002,0001,5001,0005000 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500Jars of face creamBottles of body lotiony = 2,000bcda ec = 9x + 8y1x + 0·5y= 1,6003x + 2y= 5,000 4x + 5y = 9,600Silk powder Silk amino acids Skilled labourFeasible region Maximum sales of lotion Iso-contribution line(b) Shadow prices and slackThe shadow price for silk powder can be found by solving the two simultaneous equations intersecting at point c, whilstadding one more hour to the equation for silk powder.4x +5y = 9,600 x 33x + 2y = 5,001 x 412x + 15y = 28,80012x + 8y = 20,004Subtract the second one from the first one7y = 8,796, therefore y = 1,256·573x + (2 x 1,256·57) = 5,001.Therefore x = 829·29C = (9 x 829·29) + (8 x 1,256·57) = $17,516·17Original contribution = $17,514·34Therefore shadow price for silk powder is $1·83 per gram.The slack for amino acids can be calculated as follows:(828·58 x 1) + (0·5 x 1,257·14) = 1,457·15 grams used.Available = 1,600 grams.Therefore slack = 142·85 grams.4 (a) Cost per unit under full absorption costingTotal annual overhead costs: $Machine set up costs 26,550Machine running costs 66,400Procurement costs 48,000Delivery costs 54,320––––––––195,270––––––––Overhead absorption rate:A B C TotalProduction volumes 15,000 12,000 18,000Labour hours per unit 0·1 0·15 0·2Total labour hours 1,500 1,800 3,600 6,900Therefore, overhead absorption rate = $195,270/6,900 = $28·30 per hourCost per unit:A B C$ $ $Raw materials ($1·20 x 2/3/4kg) 2·4 3·6 4·8Direct labour ($14·80 x 0·1/0·15/0·2hrs) 1·48 2·22 2·96Overhead ($28·30 x 0·1/0·15/0·2 hrs) 2·83 4·25 5·66–––––––––––––––Full cost per unit 6·71 10·07 13·42–––––––––––––––(b) Cost per unit using full absorption costingCost drivers:Cost pools $ Cost driverMachine set up costs 26,550 36 production runs (16 + 12 + 8)Machine running costs 66,400 32,100 machine hours (7,500 + 8,400 + 16,200)Procurement costs 48,000 94 purchase orders (24 + 28 + 42)Delivery costs 54,320 140 deliveries (48 + 30 + 62)––––––––195,270––––––––Cost per machine set up $26,550/36 = $737·50Cost per machine hour $66,400/32,100 = $2·0685Cost per order $48,000/94 = $510·6383Cost per delivery $54,320/140 = $38815Allocation of overheads to each product:A B C Total$ $ $ $Machine set up costs 11,800 8,850 5,900 26,550Machine running costs 15,514 17,375 33,510 66,400Procurement costs 12,255 14,298 21,447 48,000Delivery costs 18,624 11,640 24,056 54,320–––––––––––––––––––––––––––––58,193 52,163 84,913 195,270–––––––––––––––––––––––––––––Number of units produced 15,000 12,000 18,000$ $ $Overhead cost per unit 3·88 4·35 4·72Total cost per unit A B C$ $ $Materials 2·4 3·6 4·8Labour 1·48 2·22 2·96Overheads 3·88 4·35 4·72–––––––––––––––––7·76 10·17 12·48–––––––––––––––––(c) Using activity-based costingWhen comparing the full unit costs for each of the products under absorption costing as compared to ABC, the followingobservations can be made:Product AThe unit cost for product A is 16% higher under ABC as opposed to traditional absorption costing. Under ABC, it is $7·76per unit compared to $6·71 under traditional costing. This is particularly significant given that the selling price for product Ais $7·50 per unit. This means that when the activities that give rise to the overhead costs for product A are taken into account,product A is actually making a loss. If the company wants to improve profitability it should look to either increase the sellingprice of product A or somehow reduce the costs. Delivery costs are also high, with 48 deliveries a year being made for productA. Maybe the company could seek further efficiencies here. Also, machine set up costs are higher for product A than for anyof the other products, due to the larger number of production runs. The reason for this needs to be identified and, if possible,the number of production runs needs to be reduced.Product BThe difference between the activity based cost for B as opposed to the traditional cost is quite small, being only $0·10. Sincethe selling price for B is $12, product B is clearly profitable whichever method of overhead allocation is used. ABC does notreally identify any areas for concern here.Product CThe unit cost for C is 7% lower under ABC when compared to traditional costing. More importantly, while C looks like it ismaking a loss under traditional costing, ABS tells a different story. The selling price for C is $13 per unit and, under ABC, itcosts $12·48 per unit. Under traditional absorption costing, C is making a loss of $0·42 per unit. Identifying the reason forthe differences in C, it is apparent that the number of production runs required to produce C is relatively low compared to thevolumes produced. This leads to a lower apportionment of the machine set up costs to C than would be given under traditionalabsorption costing. Similarly, the number of product tests carried out on C is low relative to its volume. ABC is therefore very useful in identifying that C is actually more profitable than A, because of the reasons identified above.The company needs to look at the efficiency that seems to be achieved with C (low number of production runs less testing)and see whether any changes can be made to A, to bring it more in line with C. Of course, this may not be possible, in whichcase the company may consider whether it wishes to continue to produce A and whether it could sell higher volumes of C.5 (a) Difficulties in the public sectorIn the public sector, the objectives of the organisation are more difficult to define in a quantifiable way than the objectives ofa private company. For example, a private company’s objectives may be to maximise profit. The meeting of this objective canthen be set out in the budget by aiming for a percentage increase in sales and perhaps the cutting of various costs. If, on theother hand, the public sector organisation is a hospital, for example, then the objectives may be largely qualitative, such asensuring that all outpatients are given an appointment within eight weeks of being referred to the hospital. This is difficult todefine in a quantifiable way, and how it is actually achieved is even more difficult to define.This leads onto the next reason why budgeting is so difficult in public sector organisations. Just as objectives are difficult todefine quantifiably, so too are the organisation’s outputs. In a private company the output can be measured in terms of salesrevenue. There is a direct relationship between the expenditure that needs to be incurred i.e. needs to be input in order toachieve the desired level of output. In a hospital, on the other hand, it is difficult to define a quantifiable relationship betweeninputs and outputs. What is more easy to compare is the relationship between how much cash is available for a particular16area and how much cash is actually needed. Therefore, budgeting naturally focuses on inputs alone, rather than therelationship between inputs and outputs.Finally, public sector organisations are always under pressure to show that they are offering good value for money, i.e.providing a service that is economical, efficient and effective. Therefore, they must achieve the desired results with theminimum use of resources. This, in itself, makes the budgeting process more difficult.(b) Incremental and zero-based budgeting‘Incremental budgeting’ is the term used to describe the process whereby a budget is prepared using a previous period’sbudget or actual performance as a base, with incremental amounts then being added for the new budget period.‘Zero-based budgeting’, on the other hand, refers to a budgeting process which starts from a base of zero, with no referencebeing made to the prior period’s budget or performance. Every department function is reviewed comprehensively, with allexpenditure requiring approval, rather than just the incremental expenditure requiring approval.(c) Stages in zero-based budgetingZero-based budgeting involves three main stages:1. Activities are identified by managers. These activities are then described in what is called a ‘decision package’. Thisdecision package is prepared at the base level, representing the minimum level of service or support needed to achievet he organisation’s objectives. Further incremental packages may then be prepared to reflect a higher level of service orsupport.2. Management will then rank all the packages in the order of decreasing benefits to the organisation. This will helpmanagement decide what to spend and where to spend it.3. The resources are then allocated based on order of priority up to the spending level.(d) No longer a place for incremental budgetingThe view that there is no longer a place for incremental budgeting in any organisation is a rather extreme view. It is knownfor encouraging slack and wasteful spending, hence the comment that it is particularly unsuitable for public sectororganisations, where cash cutbacks are being made. However, to say that there is no place for it at all is to ignore thedrawbacks of zero-based budgeting. These should not be ignored as they can make ZBB implausible in some organisationsor departments. They are as follows:– Departmental managers will not have the skills necessary to construct decision packages. They will need training forthis and training takes time and money.– In a large organisation, the number of activities will be so large that the amount of paperwork generated from ZBB willbe unmanageable.– Ranking the packages can be difficult, since many activities cannot be compared on the basis of purely quantitativemeasures. Qualitative factors need to be incorporated but this is difficult.– The process of identifying decision packages, determining their purpose, costs and benefits is massively time consumingand therefore costly.– Since decisions are made at budget time, managers may feel unable to react to changes that occur during the year. Thiscould have a detrimental effect on the business if it fails to react to emerging opportunities and threats. It could be argued that ZBB is more suitable for public sector than for private sector organisations. This is because, firstly, itis far easier to put activities into decision packages in organisations which undertake set definable activities. Localgovernment, for example, have set activities including the provision of housing, schools and local transport. Secondly, it is farmore suited to costs that are discretionary in nature or for support activities. Such costs can be found mostly in not for profitorganisations or the public sector, or in the service department of commercial operations.Since ZBB requires all costs to be justified, it would seem inappropriate to use it for the entire budgeting process in acommercial organisation. Why take so much time and resources justifying costs that must be incurred inorder to meet basicproduction needs? It makes no sense to use such a long-winded process for costs where no discretion can be exercisedanyway. Incremental budgeting is, by its nature, quick and easy to do and easily understood. These factors should not beignored.In conclusion, whilst ZBB is more suited to public sector organisations, and is more likely to make cost savings in hard timessuch as these, its drawbacks should not be overlooked.17Fundamentals Level – Skills Module, Paper F5Performance Management December 2010 Marking SchemeMarks1 (a) (i) Sales price variance 3Sales volume variance 3–––6–––(ii) Purchasing planning variance 1Purchasing efficiency variance 1–––2–––(iii) Actual hours worked 3Labour rate variance 2Labour efficiency variance 2–––7–––(b) Each valid reason 1–––5–––20–––19Marks2 Turnover8·3% decrease 0.5Actual t/o 14·6% higher 0.5Performed well CF market conditions 1Transfer of students 1–––Max. turnover 3Cost of sales19·2% decrease 0.563·7% of turnover 0.515% fee reduction from freelance staff 2Other costs of sale fell by $3·555m 2Online marking did not save as much as planned 1–––Max. COS 5–––Gross profit – numbers and comment 1Indirect expenses:Marketing costs42·1% increase 0.5Increase necessary to reap benefits of developments 1 Benefits may take more than one year to be felt 0.5 Property costs – stayed the same 0.5Staff training163·9% increase 0.5Necessary for staff retention 1Necessary to train staff on new website etc 1Without training, staff would have left 1Less student complaints 1Interactive website and student helplineAttracted new students 1Increase in pass rate 1Enrolment costsFall of 80·9% 0.5Result of electronic system being introduced 1 Reduced number of late enrolments 1–––Max. Indirect expenses 9–––Net operating profitFallen to $2·106 0.5Difficult market 1Staff training costs should decrease in future 1Future increase in market share 1Lower advertising cost in future 1Charge for website 1–––Max. net operating profit 3–––2020Marks3 (a) Optimum production plan Assigning letters for variables 0.5 Defining constraint for silk powder 0.5 Defining constraint for amino acids 0.5 Defining constraint for labour 0.5Non-negativity constraint 0.5Sales constraint: x 0.5Sales constraint: y 0.5Iso-contribution line worked out 1The graph:Labels 0.5Silk powder 0.5Amino acids 0.5Labour line 0.5Demand for x line 0.5Demand for y line 0.5Iso-contribution line 0.5Vertices a–e identified 0.5Feasible region shaded 0.5Optimum point identified 1Equations solved at optimum point 3 Total contribution 1–––14–––(b) Shadow prices and slackShadow price 4Slack 2–––6–––20–––4 (a) Contribution per unitOverhead absorption rate 2Cost for A 1Cost for B 1Cost for C 1–––5–––(b) Cost under ABCCorrect cost driver rates 5Correct overhead unit cost for A 1Correct overhead unit cost for B 1Correct overhead unit cost for C 1Correct cost per unit under ABC 1–––9–––(c) Using ABC to improve profitabilityOne mark per point about the Gadget Co 1–––6–––20–––21Marks5 (a) ExplanationDifficulty setting objectives quantifiably 2Difficulty in saying how to achieve them 1Outputs difficult to measure 2No relationship between inputs and outputs 2Value for money issue 2–––Maximum 5–––(b) Incremental and zero-based budgetingExplaining ‘incremental budgeting’ 2Explaining ‘zero-based budgeting’ 2–––4–––(c) Stages involved in zero-based budgetingEach stage 1–––3–––(d) DiscussionAny disadvantage of inc. that supports statement (max. 3) 1 Incremental budgeting is quick and easy 1Any disadvantage of ZBB that refutes statement (max. 3) 1 Easier to define decision packages in public sector 2more appropriate for discretionary costs 2。
ACCAF5考试真题及答案「完整版」
ACCAF5考试真题及答案「完整版」2016年ACCA F5考试真题及答案「完整版」Question:Jewel Co is setting up an online business importing and selling jewellery headphones. The cost of each set of headphones varies depending on the number purchased, although they can only be purchased in batches of 1，000 units. It also has to pay import taxes which vary according to the quantity purchased.Jewel Co has already carried out some market research and identified that sales quantities are expected to vary depending on the price charged. Consequently, the following data has been established for the first month：Required：(a)Calculate how many batches Jewel Co should import and sell.(b)Explain why Jewel Co could not use the algebraic method to establish the optimum price for its product.Answer:(a)(b)Therefore Jewel Co should import and sell four batches (4，000 units) of headphones since at this point it will make the greatest profit： $14，400 for the month.(b)The algebraic model requires several assumptions to be true. First, there must be a consistent relationship between price (P)and demand (Q), so that a demand equation can be established, usually in the form P = a-bQ. Here, although there is a clear relationship between the two, it is not a perfectly linear relationship and so more complicated techniques are required to calculate the demand equation. It also cannot be assumed that alinear relationship will hold for all values of P and Q other than the five given.Similarly, there must be a clear relationship between demand and marginal cost, usually satisfied by constant variable cost per unit and constant fixed costs. The changing variable costs per unit again complicate the issue, but it is the changes in fixed costs which make the algebraic method less useful in Jewel's case.The algebraic model is only suitable for companies operating in a monopoly and it is not clear here whether this is the case，but it seems unlikely, so any 'optimum' price might become irrelevant if Jewel's competitors charge significantly lower prices. Other more general factors not considered by the algebraic model are political factors which might affect imports, social factors which may affect customer tastes and economic factors which may affect exchange rates or customer spending power. The reliability of the estimates themselves -for sales prices, variable costs and fixed costs - could also be called into question.Question:Swim Co offers training courses to athletes and has prepared the following breakeven chart：Required：(a)State the breakeven sales revenue for Swim Co and estimate, to the nearest $10,000, the company‘s profit if 500 athletes attend a training course.(b)Using the chart above,explain the cost and revenue structure of the company.Answer:(a)The breakeven sales revenue for Swim Co is $90,000. The company‘s profit, to the nearest $10,000, if 500 athletes attend the course is $20,000 ($140,000 - $120,000). (From the graph, itis clear that the precise amount will be nearer $17,000, i.e. $140,000 - approximately $123,000.)(b)Cost structureFrom the chart, it is clear that Line C represents fixed costs, Line B represents total costs and Line A represents total revenue.Line C shows that initially, fixed costs are $20,000 even if no athletes attend the course. This level of fixed costs remains the same if 100 athletes attend but once the number of attendees increases above this level, fixed costs increase to $40,000.Line B represents total costs. If 100 athletes attend, total costs are $40,000($400 per athlete).Since $20,000 of this relates to fixed costs, the variable cost per athlete must be $200. When fixed costs step up beyond this point at the level of 200 athletes, total costs obviously increase as well and Line B consequently gets much steeper. However, since there are now 200 athletes to absorb the fixed costs, the cost per athlete remains the same at $400 per athlete($80,000/200), even though fixed costs have doubled.If 300 athletes attend the course, total cost per athlete becomes $300 each ($90,000/300).Since fixed costs account for $40,000 of this total cost, variable costs total $50,000, i.e. $166﹞67 per athlete. So, economies of scale arise at this level,as demonstrated by the fact that Line B becomes flatter.At 400 athletes, the gradient of the total costs line is unchanged from 300 athletes which indicates that the variable costs have remained the same. There is no further change at 500 athletes;fixed and variable costs remain steady.Revenue structureAs regards the revenue structure, it can be seen from Line A that for 100每400 athletes the price remains the same at $300per athlete. However, if 500 athletes attend, the price has been reduced as the total revenue line becomes flatter. $140,000/500 means that the price has gone down to $280 per athlete. This was obviously necessary to increase the number of attendees and at this point, profit is maximised.Question:Shoe Co,a shoe manufacturer,has developed a new product called the ‘Smart Shoe’ for children,which has a built-in tracking device. The shoes are expected to have a life cycle of two years,at which point Shoe Co hopes to introduce a new type of Smart Shoe with even more advanced technology. Shoe Co plans to use life cycle costing to work out the total production cost of the Smart Shoe and the total estimated profit for the two-year period.Shoe Co has spent $5·6m developing the Smart Shoe. The time spent on this development meant that the company missed out on the opportunity of earning an estimated $800,000 contribution from the sale of another product.The company has applied for and been granted a ten-year patent for the technology,although it must be renewed each year at a cost of $200,000. The costs of the patent application were $500,000,which included $20,000 for the salary costs of Shoe Co‘s lawyer,who is a permanent employee of the company and was responsible for preparing the application.Shoe Co is still negotiating with marketing companies with regard to its advertising campaign,so is uncertain as to what the total marketing costs will be each year. However,the following information is available as regards the probabilities of the range of costs which are likely to be incurred：Required：Applying the principles of life cycle costing,calculate the total expected profit for Shoe Co for the two-year period.Answer：NoteThe expected profit has been calculated using life cycle costing not relevant costing. Hence,the $20,000 salary cost included in patent costs should be included in the life cycle cost. Similarly,the opportunity cost of $800,000 is not included using life cycle costing whereas if relevant costing was being used to decide on a particular course of action,the opportunity cost would be included.Working 1Expected marketing cost in year 1:(0·2 x $2·2m)+ (0·5 x $2·6m)+ (0·3 x $2·9m)= $2·61mExpected marketing cost year 2:(0·3 x $1·8m)+ (0·4 x $2·1m)+ (0·3 x $2·3m)= $2·07mTotal expected marketing cost = $4·68m。
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AnswersFundamentals Level – Skills Module, Paper F5Performance Management December 2014 Answers Section A1 ADivision 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 5 DAll 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 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) 1,800 1,000 720 800 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 8 B460 – 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.1011 BBy 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.1213 AThe 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.1415 BIn 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.1617 AThis 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 $1,300.18 BSet-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 ––––––––185,00020 This 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 ofseats produced 1 2 4 8Cumulative totalCumulative averagehours 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 quicklythan 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.2 Glam 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 110MaterialsThroughputThroughput per bottleneck hour Total salon costs per BN hour (w1) TPAR0·6059·4059·4042·561·48 (7·40+0·6)1026842·561·6Working 1: Total salon costs(3 x $40,000) + (2 x $28,000) + (2 x $12,000) + $106,400 = $306,400Therefore cost for each bottleneck hour = $306,400/7,200 = $42·56Note: Answers based on total salary costs were $80,000 were also equally acceptable since the wording of question was open to interpretation.3 Hi Life CoDirect materials: FabricWoodNote12$ 200 m2 at $17·50 per m220 m at $8·20 per m30 m at $8·50 per m3,5001642552Direct labour:SkilledSemi-skilledFactory overheads Administration overheads 50 hours at $24 per hour300 hours at $14 per hour20 hours at $15 per hour34561,2004,200300–––––––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 from inventory and replaced by an order from the usual supplier at a cost of $8·20 per m.3 4 5 There 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.4 Jamair(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.5 Safe 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 = 67,226·67 64,200 3,026·67 3 9,080·01––––––––––––––––––––––––––181,512 181,512 (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 =34,00081,60068,000 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 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 have an impact on sales volumes. In Safe Soap Co’s case, the sales volume variance is adverse, meaning that sales volumes have 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 start receiving 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 question 40––––––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 0·5Price 0·5–––5–––(b) (i) Learning rateCalculating learning rate Saying whether better or worse 2·5 0·5 –––3 –––(ii) Effect on price 2–––Total marks 10––––––2 (a)(b) Calculation and justification of bottleneckExplanation of bottleneck31–––4–––TPARThroughput 1111 Throughput per bottleneck hourTotal salon costsCost per hourTPAR 2–––6–––Total marks 10––––––3 Fabric calculationFabric reasonWood calculation 0·5 0·5 1Wood reason 1Skilled labour calculation Skilled labour reason 1 1Semi-skilled labour calculationSemi-skilled labour reasonFactory overheads calculationFactory overheads reason Administration overheads reasonTotal relevant cost (lowest cost estimate) 0·5 1 0·5 1·5 1 0·5 –––Total marks 10––––––精品文档Marks4 (a)(b) PerspectivesExplanation for each perspective 1·5–––6–––Goals and measuresEach goal/measure/explanationPresentation and structure21–––9–––Total marks 15––––––5 (a)(b) Variance calculationsMix varianceQuantity variance44–––8–––(i) VariancesMarks per variance explained 2–––4–––(ii) DiscussionPer valid point 1–––3–––Total marks 15––––––。