ACCA考试练习册题目 F2 2012
ACCA F2考试真题
Fundamentals Level – Knowledge Module Management AccountingTime allowed: 2 hoursThis paper is divided into two sections:Section A – ALL 35 questions are compulsory and MUSTbe attemptedSection B – ALL THREE questions are compulsory and MUSTbe attemptedFormulae Sheet, Present Value and Annuity Tables are onpages 16, 17 and 18.Do NOT open this paper until instructed by the supervisor.This question paper must not be removed from the examination hall. The Association of Chartered Certified AccountantsSection A – ALL 35 questions are compulsory and MUST be attemptedPlease use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to each multiple choice question.Each question is worth 2 marks.1 A manufacturing company benchmarks the performance of its accounts receivable department with that of a leadingcredit card company.What type of benchmarking is the company using?A B C D Internal benchmarking Competitive benchmarking Functional benchmarking Strategic benchmarking2 3 Which of the following BEST describes target costing?ABCDSetting a cost by subtracting a desired profit margin from a competitive market price Setting a price by adding a desired profit margin to a production costSetting a cost for the use in the calculation of variancesSetting a selling price for the company to aim for in the long runInformation relating to two processes (F and G) was as follows:Process Normal loss as% of inputInput(litres)Output(litres)FG8565,00037,50058,90035,700For each process, was there an abnormal loss or an abnormal gain?Process F Process GABCDAbnormal gainAbnormal gainAbnormal lossAbnormal lossAbnormal gainAbnormal lossAbnormal gainAbnormal loss4 The following budgeted information relates to a manufacturing company for next period:Units $Production Sales 14,00012,000Fixed production costsFixed selling costs63,00012,000The normal level of activity is 14,000 units per period.Using absorption costing the profit for next period has been calculated as $36,000. What would be the profit for next period using marginal costing?A B C D $25,000$27,000$45,000$47,00025 The Eastland Postal Service is government owned. The government requires it to provide a parcel delivery service toevery home and business in Eastland at a low price which is set by the government. Express Couriers Co is a privately owned parcel delivery company that also operates in Eastland. It is not subject to government regulation and most of its deliveries are to large businesses located in Eastland’s capital city. You have been asked to assess the relative efficiency of the management of the two organisations.Which of the following factors should NOT be allowed for when comparing the ROCE of the two organisations to assess the efficiency of their management?A B C D Differences in prices charged Differences in objectives pursued Differences in workforce motivation Differences in geographic areas served6 Under which sampling method does every member of the target population has an equal chance of being in thesample?A B C D Stratified sampling Random sampling Systematic sampling Cluster sampling7 A Company manufactures and sells one product which requires 8 kg of raw material in its manufacture. The budgeteddata relating to the next period are as follows:UnitsSalesOpening inventory of finished goods Closing inventory of finished goods 19,000 4,000 3,000KgOpening inventory of raw materials Closing inventory of raw materials 50,000 53,000What is the budgeted raw material purchases for next period (in kg)?A B C D 141,000147,000157,000163,0003 [P.T.O.8 Up to a given level of activity in each period the purchase price per unit of a raw material is constant. After that pointa lower price per unit applies both to further units purchased and also retrospectively to all units already purchased.Which of the following graphs depicts the total cost of the raw materials for a period?$ $A B0 0$ $C D0 0A B C D Graph A Graph B Graph C Graph D9 Which of the following are benefits of budgeting?1 2 3 4 It helps coordinate the activities of different departments It fulfils legal reporting obligationsIt establishes a system of controlIt is a starting point for strategic planningA B C D 1 and 4 only1 and 3 only2 and3 only 2 and4 only10 The following statements relate to the participation of junior management in setting budgets:1.2.3. It speeds up the setting of budgetsIt increases the motivation of junior managers It reduces the level of budget paddingWhich statements are true?A B C D 1 only2 only2 and3 only1, 2 and 3411 A company has a capital employed of $200,000. It has a cost of capital of 12% per year. Its residual income is$36,000.What is the company’s return on investment?A B C D 30% 12% 18% 22%12 A company has calculated a $10,000 adverse direct material variance by subtracting its flexed budget direct materialcost from its actual direct material cost for the period.Which of the following could have caused the variance?(1) An increase in direct material prices(2) An increase in raw material usage per unit(3) Units produced being greater than budgeted(4) Units sold being greater than budgetedA B C D 2 and 3 only3 and4 only 1 and 2 only 1 and 4 only13 A company has recorded the following variances for a period:Sales volume variance Sales price variance Total cost variance $10,000 adverse $5,000 favourable $12,000 adverseStandard profit on actual sales for the period was $120,000. What was the fixed budget profit for the period?A B C D $137,000 $103,000 $110,000 $130,00014 Which of the following are suitable measures of performance at the strategic level?(1) Return on investment(2) Market share(3) Number of customer complaintsA B C D 1 and 22 only2 and 31 and 35 [P.T.O.15 Which of the following are feasible values for the correlation coefficient?1 2 3 4 +1·40 +1·04 0–0·94A B C D 1 and 2 only3 and4 only 1, 2 and 4 only 1, 2, 3 and 416 A company’s operating costs are 60% variable and 40% fixed.Which of the following variances’ values would change if the company switched from standard marginal costing to standard absorption costing?A B C D Direct material efficiency variance Variable overhead efficiency variance Sales volume varianceFixed overhead expenditure variance17 ABC Co has a manufacturing capacity of 10,000 units. The flexed production cost budget of the company is asfollows:Capacity 60% 100%Total production costs $11,280 $15,120What is the budgeted total production cost if it operates at 85% capacity?A B C D $13,680 $12,852 $14,025 $12,34018 Using an interest rate of 10% per year the net present value (NPV) of a project has been correctly calculated as $50.If the interest rate is increased by 1% the NPV of the project falls by $20.What is the internal rate of return (IRR) of the project?A B C D 7·5%11·7%12·5%20·0%619 A factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocatedand apportioned overhead for each is as follows:P Q X Y $95,000$82,000$46,000$30,000It has been estimated that each service cost centre does work for other cost centres in the following proportions: P 50 30Q 50 60X – 10Y – –Percentage of service cost centre X to Percentage of service cost centre Y toThe reapportionment of service cost centre costs to other cost centres fully reflects the above proportions. After the reapportionment of service cost centre costs has been carried out, what is the total overhead for production cost centre P? A B C D$124,500 $126,100 $127,000 $128,50020 A company always determines its order quantity for a raw material by using the Economic Order Quantity (EOQ)model.What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material? EOQ Annual holding cost Lower Higher Higher LowerA B C D Higher Higher Lower Lower21 A company which operates a process costing system had work-in-progress at the start of last month of 300 units(valued at $1,710) which were 60% complete in respect of all costs. Last month a total of 2,000 units werecompleted and transferred to the finished goods warehouse. The cost per equivalent unit for costs arising last month was $10. The company uses the FIFO method of cost allocation.What was the total value of the 2,000 units transferred to the finished goods warehouse last month? A B C D$19,910 $20,000 $20,510 $21,71022 A manufacturing company operates a standard absorption costing system. Last month 25,000 production hours werebudgeted and the budgeted fixed production cost was $125,000. Last month the actual hours worked were 24,000 and standard hours for actual production were 27,000.What was the fixed production overhead capacity variance for last month? A B C D$5,000 Adverse $5,000 Favourable $10,000 Adverse $10,000 Favourable7 [P .T.O.23 The following statements have been made about value analysis.(1) It seeks the lowest cost method of achieving a desired function(2) It always results in inferior products(3) It ignores esteem valueWhich is/are true ?A B C D 1 only2 only3 only1 and 3 only24 Under which of the following labour remuneration methods will direct labour cost always be a variable cost?A B C D Day ratePiece rate Differential piece rate Group bonus scheme25 A company manufactures and sells a single product. In two consecutive months the following levels of production andsales (in units) occurred:Month 1 3,800 Month 2 4,400SalesProduction 3,900 4,200The opening inventory for Month 1 was 400 units. Profits or losses have been calculated for each month using both absorption and marginal costing principles.Which of the following combination of profits and losses for the two months is consistent with the above data?Absorption costing profit/(loss) Marginal costing profit/(loss)Month 1$ Month 2$Month 1$Month 2$A B C D200(400)2004,4004,4003,2003,200(400)200(400)2003,2003,2004,4004,400 (400)26 The following statements relate to the advantages that linear regression analysis has over the high low method in theanalysis of cost behaviour:1.2.3. the reliability of the analysis can be statistically tested it takes into account all of the datait assumes linear cost behaviourWhich statements are true?A B C D 1 only1 and2 only2 and3 only1, 2 and 3827 A company operates a process in which no losses are incurred. The process account for last month, when there wasno opening work-in-progress, was as follows:Process Account$ $ Costs arising 624,000 Finished output (10,000 units) 480,000Closing work-in-progress (4,000 units) 144,000––––––––––––––––624,000 624,000––––––––––––––––The closing work in progress was complete to the same degree for all elements of cost.What was the percentage degree of completion of the closing work-in-progress?A B C D 12% 30% 40% 75%28 Which of the following would not be expected to appear in an organisation’s mission statement?A B C D The organisation’s values and beliefsThe products or services offered by the organisation Quantified short term targets the organisation seeks to achieve The organisation’s major stakeholders29 An organisation operates a piecework system of remuneration, but also guarantees its employees 80% of a time-basedrate of pay which is based on $20 per hour for an eight hour working day. Three minutes is the standard time allowed per unit of output. Piecework is paid at the rate of $18 per standard hour.If an employee produces 200 units in eight hours on a particular day, what is the employee’s gross pay for thatday?A B C D $128 $144 $160 $18030 A company uses an overhead absorption rate of $3·50 per machine hour, based on 32,000 budgeted machine hoursfor the period. During the same period the actual total overhead expenditure amounted to $108,875 and 30,000 machine hours were recorded on actual production.By how much was the total overhead under or over absorbed for the period?A B C D Under absorbed by $3,875Under absorbed by $7,000Over absorbed by $3,875Over absorbed by $7,0009 [P.T.O.31 Which of the following statements relating to management information are true?1.2.3.4. It is produced for parties external to the organisationThere is usually a legal requirement for the information to be produced No strict rules govern the way in which the information is presentedIt may be presented in monetary or non monetary termsA B C D 1 and 2 3 and 41 and 32 and 432 A company’s sales in the last year in its three different markets were as follows$Market 1 Market 2 Market 3 100,000 150,000 50,000 ––––––––Total 300,000––––––––In a pie chart representing the proportion of sales made by each region what would be the angle of the section representing Market 3 (to the nearest whole degree)?A B C D 17 degrees 50 degrees 61 degrees 120 degrees33 Which of the following BEST describes a flexible budget?A B C D A budget which shows variable production costs onlyA monthly budget which is changed to reflect the number of days in the monthA budget which shows sales revenue and costs at different levels of activityA budget that is updated halfway through the year to incorporate the actual results for the first half of the year34 The purchase price of an item of inventory is $25 per unit. In each three month period the usage of the item is20,000 units. The annual holding costs associated with one unit equate to 6% of its purchase price. The cost of placing an order for the item is $20.What is the Economic Order Quantity (EOQ) for the inventory item to the nearest whole unit?A B C D 7308941,4611,633.1035 Two products G and H are created from a joint process. G can be sold immediately after split-off. H requires furtherprocessing into product HH before it is in a saleable condition. There are no opening inventories and no work in progress of products G, H or HH. The following data are available for last period:$Total joint production costsFurther processing costs of product H 350,000 66,000Product Productionunits420,000330,000Closing inventory 20,000 30,000GHHUsing the physical unit method for apportioning joint production costs, what was the cost value of the closing inventory of product HH for last period?A B C D $16,640$18,625$20,000$21,600(70 marks)Section B – ALL THREE questions are compulsory and MUST be attempted1 Cab Co owns and runs 350 taxis and had sales of $10 million in the last year. Cab Co is considering introducing anew computerised taxi tracking system.The expected costs and benefits of the new computerised tracking system are as follows:(i) The system would cost $2,100,000 to implement.(ii) (iii) Depreciation would be provided at $420,000 per annum.$75,000 has already been spent on staff training in order to evaluate the potential of the new system. Further training costs of $425,000 would be required in the first year if the new system is implemented.(iv) Sales are expected to rise to $11 million in Year 1 if the new system is implemented, thereafter increasing by 5% per annum. If the new system is not implemented, sales would be expected to increase by $200,000 per annum.(v) Despite increased sales, savings in vehicle running costs are expected as a result of the new system. These are estimated at 1% of total sales.(vi) Six new members of staff would be recruited to manage the new system at a total cost of $120,000 per annum. (vii) Cab Co would have to take out a maintenance contract for the new system at a cost of $75,000 per annum for five years.(viii) Interest on money borrowed to finance the project would cost $150,000 per annum.(ix) Cab Co’s cost of capital is 10% per annum.Required:(a) State whether each of the following items are relevant or irrelevant cashflows for a net present value (NPV)evaluation of whether to introduce the computerised tracking system.(i) Computerised tracking system investment of $2,100,000;(ii) Depreciation of $420,000 in each of the five years;(iii) Staff training costs of $425,000;(iv) New staff total salary of $120,000 per annum;(v) Staff training costs of $75,000;(vi) Interest cost of $150,000 per annum.Note: The following mark allocation is provided as guidance for this requirement:(i) 0·5 marks(ii) 1 mark(iii) 0·5 marks(iv) 1 mark(v) 1 mark(vi) 1 mark(5 marks)(b) Calculate the following values if the computerised tracking system is implemented.(i) Incremental sales in Year 1;(ii) Savings in vehicle running costs in Year 1;(iii) Present value of the maintenance costs over the life of the contract.Note: The following mark allocation is provided as guidance for this requirement:(i) 1 mark(ii) 0·5 marks(iii) 1·5 marks(3 marks)(c) Cab Co wishes to maximise the wealth of its shareholders. It has correctly calculated the following measures forthe proposed computerised tracking system project:–––The internal rate of return (IRR) is 14%,The return on average capital employed (ROCE) is 20% and The payback period is four years.Required:Which of the following is true?A B C D The project is worthwhile because the IRR is a positive valueThe project is worthwhile because the IRR is greater than the cost of capitalThe project is not worthwhile because the IRR is less than the ROCEThe project is not worthwhile because the payback is less than five years (2 marks)(10 marks)2 Castilda Co manufactures toy robots. The company operates a standard marginal costing system and values inventoryat standard cost.The following is an extract of a partly completed spreadsheet for calculating variances in month 1.Required:(a) Which formula will correctly calculate the direct labour efficiency variance in cell B18?A B C D = (C9*C4)- B13=B13-(C9*C4)= (C9*C4)- (150,000*8)=(150,000-(C9*6))*8 (2 marks)(5 marks)(b) Calculate the following for month 1:Sales volume variance and state whether it is favourable or adverse;(i)(ii) Sales price variance and state whether it is favourable or adverse.Note: The total marks will be split equally between each part.(c) Castilda’s management accountant thinks that the direct labour rate and efficiency variances for Month 1 couldbe interrelated.Required:Briefly explain how the two direct labour variances could be interrelated. (3 marks)(10 marks)3 Nicholson Co sells mobile telephones. It supplies its customers with telephones and wireless telephone connections.Customers pay an annual fee plus a monthly charge based on calls made.The company has recently employed a consultant to install a balanced scorecard system of performance measurement and to benchmark the results against those of Nicholson Co’s competitors. Unfortunately the consultant was called away before the work was finished. You have been asked to complete the work. The following data is available.Nicholson CoOperating data for the year ended 30 November 2013Sales revenueSales attributable to new products Average capital employed $480 million $8 million $192 million $48 million 1,960,00010,000Profit before interest and taxAverage numbers of customersAverage number of telephones returned for repair each dayNumber of bill queries 12,000Number of customer complaintsNumber of customers lostAverage number of telephones unrepaired at the end of each day21,600 117,600804Required:(a) Calculate the following ratios and other statistics for Nicholson Co for the year ended 30 November 2013.Return on capital employed;(i)(ii) Return on sales (net profit percentage);(iii) Asset turnover;(iv) Average wait for telephone repair (in days);(v) Percentage of customers lost per annum;(vi) Percentage of sales attributable to new products.Note: The following mark allocation is provided as guidance for this requirement:(i) 1·5 marks(ii) 1·5 marks(iii) 1·5 marks(iv) 1·5 marks(v) 1 mark(vi) 1 mark(8 marks)(c) A balanced scorecard measures performance from four perspectives: customer satisfaction, growth, financialsuccess and process efficiency.Required:Briefly explain any ONE of the four perspectives above. (2 mark)(10 marks)Formulae Sheet Regression analysisy = a + bxEconomic order quantity2C 0D C hEconomic batch quantity2C 0D C h (1–DR)Present Value TablePresent value of 1 i.e. (1 +r)–nWhere r = discount raten = number of periods until paymentDiscount rate (r)Periods(n) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%12345 0·9900·9800·9710·9610·9510·9800·9610·9420·9240·9060·9710·9430·9150·8880·8630·9620·9250·8890·8550·8220·9520·9070·8640·8230·7840·9430·8900·8400·7920·7470·9350·8730·8160·7630·7130·9260·8570·7940·7350·6810·9170·8420·7720·7080·6500·9090·8260·7510·6830·62112345678910 0·9420·9330·9230·9410·9050·8880·8710·8530·8370·8200·8370·8130·7890·7660·7440·7900·7600·7310·7030·6760·7460·7110·6770·6450·6140·7050·6650·6270·5920·5580·6660·6230·5820·5440·5080·6300·5830·5400·5000·4630·5960·5470·5020·4600·4220·5640·5130·4670·4240·3866789101112131415 0·8960·8870·8790·8700·8610·8040·7880·7730·7580·7430·7220·7010·6810·6610·6420·6500·6250·6010·5770·5550·5850·5570·5300·5050·4810·5270·4970·4690·4420·4170·4750·4440·4150·3880·3620·4290·3970·3680·3400·3150·3880·3560·3260·2990·2750·3050·3190·2900·2630·2391112131415(n) 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%12345 0·9010·8120·7310·6590·5930·8930·7970·7120·6360·5670·8850·7830·6930·6130·5430·8770·7690·6750·5920·5190·8700·7560·6580·5720·4970·8620·7430·6410·5520·4760·8550·7310·6240·5340·4560·8470·7180·6090·5160·4370·8400·7060·5930·4990·4190·8330·6940·5790·4820·40212345678910 0·5350·4820·4340·3910·3520·5070·4520·4040·3610·3220·4800·4250·3760·3330·2950·4560·4000·3510·3080·2700·4320·3760·3270·2840·2470·4100·3540·3050·2630·2270·3900·3330·2850·2430·2080·3700·3140·2660·2250·1910·3520·2960·2490·2090·1760·3350·2790·2330·1940·1626789101112131415 0·3170·2860·2580·2320·2090·2870·2570·2290·2050·1830·2610·2310·2040·1810·1600·2370·2080·1820·1600·1400·2150·1870·1630·1410·1230·1950·1680·1450·1250·1080·1780·1520·1300·1110·0950·1620·1370·1160·0990·0840·1480·1240·1040·0880·0740·1350·1120·0930·0780·0651112131415Annuity Table1 – (1 + r)–nPresent value of an annuity of 1 i.e. ————––rWhere r = discount raten = number of periodsDiscount rate (r)Periods(n) 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%12345 0·9901·9702·9413·9024·8530·9801·9422·8843·8084·7130·9711·9132·8293·7174·5800·9621·8862·7753·6304·4520·9521·8592·7233·5464·3290·9431·8332·6733·4654·2120·9351·8082·6243·3874·1000·9261·7832·5773·3123·9930·9171·7592·5313·2403·8900·9091·7362·4873·1703·79112345678910 5·7956·7287·6528·5669·4715·6016·4727·3258·1628·9835·4176·2307·0207·7868·5305·2426·0026·7337·4358·1115·0765·7866·4637·1087·7224·9175·5826·2106·8027·3604·7675·3895·9716·5157·0244·6235·2065·7476·2476·7104·4865·0335·5355·9956·4184·3554·8685·3355·7596·1456789101112131415 10·3711·2612·1313·0013·879·78710·5811·3512·1112·859·2539·95410·6311·3011·948·7609·3859·98610·5611·128·3068·8639·3949·89910·387·8878·3848·8539·2959·7127·4997·9438·3588·7459·1087·1397·5367·9048·2448·5596·8057·1617·4877·7868·0616·4956·8147·1037·3677·6061112131415(n) 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%12345 0·9011·7132·4443·1023·6960·8931·6902·4023·0373·6050·8851·6682·3612·9743·5170·8771·6472·3222·9143·4330·8701·6262·2832·8553·3520·8621·6052·2462·7983·2740·8551·5852·2102·7433·1990·8471·5662·1742·6903·1270·8401·5472·1402·6393·0580·8331·5282·1062·5892·99112345678910 4·2314·7125·1465·5375·8894·1114·5644·9685·3285·6503·9984·4234·7995·1325·4263·8894·2884·6394·9465·2163·7844·1604·4874·7725·0193·6854·0394·3444·6074·8333·5893·9224·2074·4514·6593·4983·8124·0784·3034·4943·4103·7063·9544·1634·3393·3263·6053·8374·0314·1926789101112131415 6·2076·4926·7506·9827·1915·9386·1946·4246·6286·8115·6875·9186·1226·3026·4625·4535·6605·8426·0026·1425·2345·4215·5835·7245·8475·0295·1975·3425·4685·5754·8364·9885·1185·2295·3244·6564·7934·9105·0085·0924·4864·6114·7154·8024·8764·3274·4394·5334·6114·6751112131415End of Question Paper。
ACCAF2练习题2012（题）
ACCAF2练习题2012（题）F2 MANAGEMENT ACCOUNTING-Q1. A firm which bottles shampoo selects some filled bottles for examination. The procedure used is that two random numbers, x and y, are chosen. Starting at the xth bottle filled, every bottle at an interval of y is then chosen for examination.This type of sampling is known as:A Multi-stageB RandomC SystematicD Stratified2. The following statements relate to responsibility center:(i) Return on capital employed is a suitable measure of performance in both profit and investment centers.(ii) Cost centers are found in manufacturing organizations but not in service organizations.(iii) The manager of a revenue center is responsible for both sales and costs in a part of anorganization.Which of the statements are incorrect?A (i) and (ii)B (ii) and (iii)C (i) and (iii)D All of them3. A pie chart is being produced to represent the sales from different regional offices of a business:$000North 125North West 180East 241South 691South East 147Total 1,384What would be the angle of the East divisions section on the pie chart (to the nearest whole degree)?A 63°B 33°C 180°D 5804.Which of the following is not a type of benchmarking?A InternalB StrategicC InternationalD Functional5.K Class has calculated the following indicators: (i)Return on capital employed (ii)Training costs as a percentage of total costs Which of the balanced scorecard perspectives would these measures relate to?(i) (ii)A Financial FinancialB Financial InternalC Internal Learning and growthD Financial Learning and growth6. A government body uses measures based upon the ‘three Es’ to t he measure value for money generated by a publicly funded hospital. It considers the most important performance measure to be ‘cost per successfully treated patient’.W hich of the three E’s best describes the above measure?A EconomyB EffectivenessC EfficiencyD Externality6.The diagram represents the behaviour of a cost item as the level of output changes: Which ONE of the following situations is described by the graph?A Discounts are received on additional purchases of material when certain quantities are purchased.B Employees are paid a guaranteed weekly wage, together with bonuses for higher levels of production.C A license is purchased from the government that allows unlimited production.D Additional space is rented to cope with the need to increase production8.The following production and total cost information relates to a single product organization for the last three months: Month production units total costs1 1200 66,6002 900 58,2003 1400 68200The variable cost per unit is constant up to a production level of 2,000 units per month but a step up of $6,000 in the monthly total fixed cost occurs when production reaches 1,100 units per month. What is the total cost for a month when 1,000 units are produced?A $54,200B $55,000C $59,000D $60,2009.Which of the following will be completed by a production department requiring new materials to be obtained from suppliers?A A purchase orderB A delivery noteC A purchase requisitionD A goods received noteThe following information applies to questions 10, 11 and 12 Point uses the economic order quantity (EOQ) model to establish the reorder quantity for raw material Y. The company holds no buffer inventory. Information relating to raw material Y is as follows:48,000 units Annual usage$80 per unit Purchase price$120 per order Ordering costs10% of the purchase price Annual holding cost10.The EOQ for raw material Y is:A 438B 800C 1,200D 3,79511.The total annual cost of purchasing, ordering and holding inventory of raw material Y is：A $3,849,600B $3,850,400C $3,853,600D $3,854,40012.The supplier has offered Point a discount of 1% on the purchase price if each order placed is for 2,000 units.The total annual saving to Point of accepting this offer is :A $29,280B $30,080C $37,200D $38,00013.Which of the following are included in the cost of holding inventory?(i) the cost of insurance(ii)rental payment of storage space(iii)the cost of placing a orderA (i) and (ii)B (i) and (iii)C (ii) and (iii)D (i), (ii) and (iii)14.If the direct labor costs in a manufacturing company are $95,000 in March, the costs would be recorded in the cost ledger as:A Debit Work-in-progress $95,000, Credit Wages and salaries $95,000B Debit Wages and salaries $95,000, Credit Bank $95,000C Debit Wages and salaries $95,000, Credit Work-in-progress $95,000D Debit Bank $95,000, Credit Wages and salaries $95,00015.A direct labor employee works a standard 37 hour week and is paid a basic rate of $15 per hour. Overtime is paid at time and a half. In a week when 40 hours were worked and a Bonus of $20 was paid, what was the direct labor cost?A $555B $600C $622.50D $642.5016.A cost centre has an overhead absorption rate of $4.25 per machine hour, based ona budgeted activity level of 12,400 machine hours.In the period covered by the budget, actual machine hours worked were 2% more than the budgeted hours and the actual overhead expenditure incurred in the cost center was $56,389.What was the total over or under absorption of overheads in the cost center for the period?A $1,054 over absorbedB $2,635 under absorbedC $3,689 over absorbedD $3,689 under absorbed17.The management accountant’s report shows that fixed production overheads were over-absorbed in the last accounting period. The combination that is certain to lead to this situation is:A Production volume is lower than budget and actual expenditure is higher than budgetB production volume is higher than budget and actual expenditure is higher than budgetC production volume and actual cost are as budgetedD production volume is higher than budget and actual expenditure is lower than budget.18.A law firm recovers overheads on chargeable consulting hours. Budgeted overheads were $615,000 and actual consulting hours were 32,150. Overheads were under-recovered by $35,000.If actual overheads were $694,075, the budgeted overhead absorption rate per hour is (to 2 decimal places):A $20.21B $20.50C $21.59D $22.68/doc/091272678.htmlst month a manufacturing company’s profit was $2,000, calculated using absorption costing principles. If marginal costing principles had been used, a loss of $3,000 would have occurred. The company’s fixed production cost is $2 per unit. Sales last month were 10,000 units.What was last month’s production (in units)?A 7,500B 9,500C 10,500D 12,500The following data are for questions 20 and 21.The budget for Bright’s first month of trading, producing and selling boats was as follows: $Variable production cost of boats 45Fixed production cost 30Production cost of 750 boats 75Closing inventory of 250 boats (25)Production cost of 500 sold 50Variable selling cost 5Fixed selling cost 2580Profit 10Sales revenue 90The budget has been produced using an absorption costing system.20.If a marginal costing system were used, the budgeted profit would be:A $22,500 lowerB $10,000 lowerC $10,000 higherD $22,500 higher21.Assume that at the end of the first month unit variable costs and fixed costs and selling price for the month were in line with the budget and any inventory was valued at the same unit cost as in the above budget.However, if production was actually 700 and sales 600, what would be the reported profit using absorption costing?A $9,000B $12,000C $14,000D $15,00022.For a product that has a positive unit contribution, which of the following events would tend to increase total contribution by the greatest amount:A 10% decrease in variable cost.B 10% increase in selling price.C 10% increase in volume sold.D 15% decrease in total fixed costs23.A company uses process costing to value output. During the last month the following information was recorded: Output: 2800kg valued at $7.5/kgNormal loss: 300kg which has a scrap value of $3/kgActual gain: 100kgWhat was the value of the input?A $22,650B $21,900C $21,600D $21,15024.Vare produces various inks at its Normanton factory. Production details for Process 1 are as follows:Opening work-in-progress, 1 April 400 units60% complete Closing work-in-progress, 30 April 600 units20% complete Units started 1,000Units finished 800The degree of completion quoted relates to labour and overhead costs. Three-quarters of the materials are added at the start of the process and the remaining quarter added when the process is 50% complete. The company uses the FIFO method of cost allocation.The equivalent units of production for materials in the period are:A 1,250B 1,000C 850D 68025.In process costing, if an abnormal loss arises the process account is generally:A debited with the scrap value of the abnormal loss unitsB debited with the full production cost of the abnormal loss unitsC credited with the scrap value of the abnormal loss unitsD credited with the full production cost of the abnormal loss units26.X uses process costing. In Process 3 the normal loss is 4% of total input.Last period the input from Process 2 was 8,500 kg and additional material of 4,250 kg was added to process 3.Actual output to finished goods was 12,700 kg.There was no opening or closing work-in-progress in the period.The abnormal gain or loss in kg for period 3 was:A 460 kg gainB 460 kg lossC 290 kg gainD 290 kg loss27.Which of the following are features of service organizations?(i)High levels of inventory(ii)High proportion of fixed costs(iii)Difficulty in identifying suitable cost unitsA (i) and (ii) onlyB (i) and (iii) onlyC (ii) and (iii) onlyD All of these28.Which ONE of the following is an advantage of Activity Based Costing?A It provides more accurate product costsB It is simple to applyC It is a form of marginal costing and so is relevant to decision makingD It is particularly useful when fixed overheads are very low29. As an indirect result of purchase of under-standard materials, are the materials usage variance and labor efficiency variance likely to be adverse or favorableMaterials usage Labor efficiencyA Favorable FavorableB Adverse FavorableC Favorable AdverseD Adverse Adverse30. A company operates a standard absorption costing system. The standard fixed production overhead rate is $15 per hour.The following data relate to last month:Actual hours worked 5500Budgeted hours 5000Standard hours for actual production 4800What was the fixed production overhead capacity variance?A$7,500 adverseB$7,500 favourableC$10,500 adverseD$10,500 favourable31. Which of the following could be the cause of an adverse sales volume variance for garden furniture.(i)The company offers discounts on sales prices in order to maintain business.(ii)Poor weather leads to a reduction in sales.(iii)A strike in the factory causes a shortage of finished goods.A (i) and (ii) onlyB (i) and (iii) onlyC (ii) and (iii) onlyD all above32. An extract from the standard cost card for product CJ is as follows:Direct labour (0.5 hours × $12) $6710 units of CJ were produced in the period and staff worked 378 hours at a total cost of $4,725. Of these hours 20 were lost due to a material shortage.The labour efficiency variance is:A$516 favourableB$36 favourableC$36 adverseD$516 adverse33. A flexible budget is:A a budget for semi-variable overhead costs only;B a budget which, by recognising different cost behaviour patterns, is designed to change as volume of activity changes;C a budget for a twelve month period which includes planned revenues, expenses, assets and liabilities;D a budget which is prepared for a rolling period which is reviewed monthly, and updated accordingly34. Which of the following statements are true about IRRs?(i)IRR considers the time value of money(ii)if the IRR exceeds the companies cost of capital the NPV at the company’s cost ofcapital should be positive(iii)it is possible for one investment to have 2 IRRsA (i) onlyB (i) and (ii) onlyC (ii) and (iii) onlyD (i), (ii) and (iii)35. A company is considering an investment of $400,000 in new machinery. The machinery is expected to yield incremental profits over the next five years as follows:Year Profit ($)1 175,0002 225,0003 340,0004 165,0005 125,000Thereafter, no incremental profits are expected and the machinery will be sold. It is company policy to depreciate machinery on a straight line basis over the life of the asset. The machinery is expected to have a value of $50,000 at the end of year 5. Calculate the payback period of the investment in this machinery to the nearest 0.1 years.A 0.9 yearsB 1.3 yearsC 1.5 yearsD 1.9 years36. Performance standards that have remained unchanged over a long period of time are known as:A deal standardsB current standardsC basic standardsD Attainable standards37. A company has determined that the net present value of an investment project is $17,706 when using a 10% discount rate and $(4,317) when using a discount rate of 15%. Calculate the internal rate of return of the project to the nearest 1%.A 13%B 14%C 15%D 16%38. CC Company is considering an investment of $300,000 which will earn a contribution of $40,000 each year for 10 years at today’s prices. The company’s cost of capital is 11% per annum.Calculate the net present value of the project:A ($64,440)B $23,556C $64,440D $235,56039. The principal budget factor for a footwear retailer is:A The cost item taking the largest share of total expenditure.B The product line contributing the largest amount to sales revenue.C The product line contributing the largest amount to business profits.D The constraint that is expected to limit the retailer’s activities during the budget period40. A process has a normal loss of 10% and budgeted output is 4,500 litres for the period.Opening inventory of raw material is 600 litres and is expected to increase by 20% by the end of the period. The material usage budget is:A 4,500 litresB 5,000 litresC 5,133 litresD 5,120 litres41. Put the stages of the product life cycle in the correct order:(i)Growth(ii)Decline(iii)Maturity(iv)Development(v)IntroductionA (i), (v), (iii), (iv), (ii)B (v), (iv), (i), (iii), (ii)C (iv), (v), (i), (iii), (ii)D (iv), (i), (iv), (iii), (ii)42. Which of the following correlation coefficients indicates the weakest relationship between two variables?A + 1.0B + 0.4C – 0.6D – 1.043. The correlation coefficient (r) for measuring the connection between two variables (x and y) has been calculated as 0.6.How much of the variation in the dependent variable (y) is explained by the variation in the independent variable (x).A 36%B 40%C 60%D 64%44. Charleville operates a continuous process producing three products and one by-product.Output from the process for a month was as follows:Product Selling price per unit Units of output from process1 $18 100002 $25 200003 $20 200004 (by-product) $2 3500Total joint costs were $277,000.What was the unit cost valuation for product 3 using the sales revenue basis for allocating joint costs assuming that the revenue receivable from the by-product is deducted from the joint costs?A $4.70B $4.80C $5.00D $5.1045. In the context of quality costs, customer compensation costs and test equipment running costs would be classified as: Customer compensation costs Test equipment running costA internal failure cost prevention costB internal failure cost appraisal costC external failure cost appraisal costD external failure cost prevention cost46. The selling price of product K is set at $450 for each unit.If the company requires a return of 20% in the coming year on product K, the target cost for each unit for the coming year is:A $300B $360C $400D $45047. Regression analysis is being used to find the line of best fit (y = a + bx) from eleven pairs of data. The calculations have produced the following information:Σx = 440, Σy = 330, Σx2 = 17,986, Σy 2 = 10,366 and Σxy = 13,467.What is the value of ‘b’ in the equation for the line of best fit (to 2 decimal places)?A 0.63B 0.69C 2.33D 5.3348. A time series model of sales volume has the following trend and additive seasonal variation.Trend Y = 5,000 + 4,000 XWhere Y = quarterly sales volume in units.X = the quarter number (Where the first quarter of 2009 = quarter 17, the second quarter of 2009 = quarter 18 etc).Quarter seasonal variationFirst +3000Second +1000Third -1500Fourth -2500What would be the time series forecast of sales units for the third quarter of 2010?A 79,500B 95,500C 97,000D 98,500The following information applies to questions 49 and 50.A company records the following information concerning a product:Standard time allowed per unit 16 munitesActual output in period 720 unitsActual hours worked 180Budgeted hours 18549. What is the labour efficiency ratio?A 93.75%B 97.3%C 102.5%D 106.7%50. What is the labour capacity ratio?A 102.8%B 99.4%C 98.6%D 97.3%。
ACCA考试练习册题目 F2 2012
1、Accounting for management1.1 Which of the following statements about qualities of good information is false ?A It should be relevant for its purposesB It should be communicated to the right personC It should be completely accurateD It should be timelyAnswer：C1.2 The sales manager has prepared a manpower plan to ensure that sales quotas for the forthcoming year are achieved.This is an example of what type of planning?A Strategic planningB Tactical planningC Operational planningD Corporate planningAnswer：B1.3 Which of the following stastements about management acco unting information is/are true?1 They must be stated in purely monetary terms2 Limited companies must,by law,perpar management acco unt3 They serve as a future planning tool and not used as a n historical recordA 1,2 and3B 1 and 2C 2 onlyD None of the statements is trueAnswer：D1.4 Which of the following stastements is/are correct ?1 A management control system is a term used to descri be the hardware and software used to drive a database system whi ch produces information outputs that are easily assimilated by mana gement.2 An objectives is a course of action that an organisation might pursue in order to achieve its strategy.3 Informaton is data that has been processed into a form meaningful to the recipient.A 1,2 and 3B 1 and 3C 2 and 3D 3 onlyAnswer：D1.5 Good information should have certain qualities. Which of the following are qualities of goodInformation ?1 Complete2 Extensive3 Relevant4 AccurateA 1,2 and 3B 1,3 and 4C 2 and 4D All of themAnswer：B1.6 Monthly variance reports are an example of which one of the following types of management?A TacticalB StrategicC Non-financialD OperationalAnswer：A1.7 Which of the following stastements is/are correct ?1 Strategic planning is carried out by front-line managers2 Non-financial information is relevant to management ac countingA 1 is true and 2 is falseB 2 is true and 1 is falseC Both are trueD Both are falseAnswer：B2、Sources of data2.1 Which of the following is/are primary sources of data ?(i) Historical records of transport costs to be used to prepare forecasts for budgetary planning(ii)The Annual Abstract of Statistics, published by the Office for National Statistics in the United Kingdom(iii) Data collected by a bank in a telephone survey to monitor the effectivess of the bank’s customer servicesA (i) and (ii)B (i) and (iii)C (i) onlyD (iii) onlyAnswer：D2.2 The following statements relate to different types of data(i) Secondary data are data collected especially for a specific purpose(ii) Discrete data can take on any value(iii) Qualitative data are data that cannot be measured(iv) Population data are data arising as a result of investigating a group of people or objectsWhich of the statements are true ?A (i) and (ii) onlyB (ii) and (iii) onlyC (ii) and (iv) onlyD (iii) and (iv) onlyAnswer：D2.3 Which of the following stastements are not true ?I If a sample is selected using random sampling, it will be free from bias.II A sampling frame is a numbered list of all items in a sample.III In cluster sampling there is very little potential for bias.IV In quota sampling, investigators are told to interview all the people they meet up to a certain quota.A I,II,III and IVB I,II and IIIC II and IIID II onlyAnswer：C2.4 Which of the following sampling methods require a sampling frame ?(i) Random(ii) Stratified(iii) Quota(iv) SystematicA (i) and (ii) onlyB (i),(ii) and (iii) onlyC (i),(ii) and (iv) onlyD (iii) onlyAnswer：C2.5 Which of the following explains the essence of quote sampling ?A Each element of the population has an equal chance of being chosenB Every nth member of the population is selectedC Every element of one definable sub-section of the population is selectedD None of the aboveAnswer：D。
ACCA资料 真题 f4chn_2012_dec_a
Fundamentals Level –Skill Module, Paper F4 (CHN)Corporate and Business Law (China) December 2012 Answers1This question requires candidates to state the procedural ways to deal with the various situations when an assignment of contract takes place and a dispute, between the assignee and the other party to the contract, is brought to the people’s court under the Judicial Interpretation on Contract by the Supreme People’s Court.(a)In accordance with Article 27 of the Judicial Interpretation, where an obligee has assigned his rights to a third party and adispute between the obligor and the assignee regarding the performance of contract is brought to the people’s court, the court may add the original obligee as the third party in the litigation if the obligor raises a protest against the rights of the original obligee.(b)In accordance with Article 28 of the Judicial Interpretation, where an obligor has assigned his obligations to a third party,with the consent of the obligee, and a dispute between the assignee and the obligee regarding the performance of contract is brought to the people’s court, the court may add the obligor as the third party in the litigation if the assignee raises a protest concerning the right of the obligor against the obligee.(c)In accordance with Article 29 of the Judicial Interpretation, where after one party has assigned both his rights and obligationsunder the contract to an assignee and a dispute between the other party and the assignee regarding the performance of contract is brought to the people’s court, the court may add the assignor as the third party if the other party raises a protest concerning the rights or duties under the original contract.2This question requires candidates to explain the non-competition clause, and state the persons who are subject to non-competition obligations and the conditions for a labour contract to include a non-competition clause under the Labour Contract Law of China.(a)The non-competition clause refers to a clause contained in a labour contract or a confidentiality agreement, under which anemployee agrees to maintain the trade secret of the employer and the confidentiality of matters relating to the industrial properties of the employer for a period of time after the termination or dissolution of a labour contract.(b)In accordance with Article 24 of the Labour Contract Law, the persons who are subject to non-competition obligations includethe employer’s senior management, senior technicians and other personnel with confidentiality obligations.(c)In accordance with Articles 23 and 24 of the Labour Contract Law, where a labour contract contains a non-competitionclause, the same contract shall also stipulate that the employer pays monetary compensation to the employee on a monthly basis during the term of non-competition after the termination or dissolution of the labour contract. The term, counted from the termination or dissolution of the labour contract, shall not exceed two years.3This question requires candidates to explain a pre-contractual liability, distinguish between this and liability for breach of contract and state the conduct of a party that will result in pre-contractual liability under the Contract Law of China.(a)Pre-contractual liability refers to the liability incurred by a party’s conduct, as prescribed in the Contract Law, which causesa loss or damages to the other party during the process of negotiating a contract but the contract is finally not concluded.The major difference between the pre-contractual liability and the liability for breach of contract is: under the pre-contractual liability there is no contract by the two parties who have negotiated to conclude a contract; while under the liability for breach of contract an effective contract has been concluded but one of the parties breaches it. Under pre-contractual liability the form of liability is compensation for loss while under liability for breach of contract the form of liability includes specific performance, liquidated damages and damages.(b)In accordance with Article 42 of the Contract Law, a party with the following conduct in negotiating a contract shall be liablefor the losses caused to the other party:(i)under the pretext of concluding a contract, to negotiate in bad faith;(ii)deliberate concealment of the important facts relating to concluding a contract or providing false information;(iii)other conduct in violation of the principle of good faith.4This question requires candidates to state the composition of the board of directors in different forms of limited liability companies, and the ways to deal with the situation where the number of directors is less than a quorum under the Company Law of China.(a)In accordance with Article 45 of the Company Law, a general limited liability company shall set up a board of directors whichshall be composed of 3 to 13 members, unless otherwise stipulated by the law. The method of the creation of the chairman and vice-chairman of the board of directors shall be stipulated in the articles of association of the company.(b)In accordance with Article 45 of the Company Law, where a limited liability company is invested and established by two ormore state-owned enterprises, its board of directors shall include representatives of the employees of the company. Such representatives of employees shall be elected by the employees of the company through the staff and workers congress, workers’ assembly or other forms of election.(c)In accordance with Article 46 of the Company Law, where the members of the board of directors are/is less than the quorumbecause re-election is not conducted upon expiry of the term of office of a director, or a director resigns during his term of office, the said director shall still perform his functions as a director.5This question requires candidates to explain the term rectification, and state the legal effect of rectification on the right of guarantee during the period of rectification and the ways to deal with the situation that may damage the rights of a guarantor under the Enterprise Bankruptcy Law of China.(a)The term rectification refers to such a system under which a debtor or an investor whose investment accounts for 10% ormore of the registered capital of the debtor, after the application for bankruptcy has been accepted and before the declaration of bankruptcy of the debtor by the court, may apply to the court to rectify debts of the debtor. Under the conditions of acceptance of such application by the court and the suspension of the bankruptcy procedures, the debtor may continue its business operations, so as to avoid bankruptcy of the debtor and resume its ability of normal business operations.(b)In accordance with Article 75 of the Enterprise Bankruptcy Law, in the period of rectification, the right of guarantee on theparticular property of the debtor shall be suspended. However, if there is a possibility for the secured property to suffer damages or significant depreciation of value so that the right of guarantee is endangered, the guarantee may apply to the court for recovering the right to guarantee. A bankruptcy administrator may set a guarantee for a new loan for the purpose of continuing the debtor’s business operations.6This question requires candidates to explain a takeover by offer of a listed company, state the ways to deal with the shares of a listed company purchased after the expiration of the duration of takeover and the ways to deal with the legal status of the listed company purchased after the completion of takeover under the Securities Law of China.(a)In accordance with Article 88 of the Securities Law, takeover by offer refers to the form of taking over a listed company wherean investor comes to hold or jointly hold with others, through a stock exchange, 30% of the issued shares of a listed company and continues to buy such shares, the investor shall comply with the law to issue to all the shareholders of the listed companya takeover offer for buying the whole or part of the shares of the listed company.(b)In accordance with Article 97 of the Securities Law, the trading of the shares of the stock company under takeover shall beterminated on the stock exchange when the distribution of shares does not meet the requirements for listing, upon the expiration of the term of the takeover offer. The holders of the remaining shares of the target company shall be entitled to sell their shares to the purchaser on the same conditions as those in the takeover offer; while the purchaser is under an obligation to buy up these shares. The listed company taken over shall change its enterprise form where this company no longer meets the requirement for a joint stock company, upon the completion of the takeover.7This question requires candidates to describe various acts relating to the capital of a company that shall be regarded as fraudulent corporate behaviour, and state the reasons why such acts shall be regarded as fraudulent corporate behaviour.(a)In corporate management, the following acts relating to the capital of a company, committed by any personnel, shall beregarded as fraudulent behaviour:(i)to provide a false statement of the registered capital during the process of establishing a company;(ii)to make false capital contributions;(iii)to withdraw the capital, contributed during the process of incorporation, after the establishment of the company.(b)Due to the following reasons, the above-described acts are to be regarded as illegal and fraudulent behaviour:(i)providing a false statement of registered capital and making false capital contributions will result in a situation in whichthe registered capital of the company, as stipulated in the articles of association and registered with the governmentagency, cannot reflect its genuine situation of capital;(ii)withdrawal of the capital contributed in the process of incorporation after the establishment of the company will reduce its ability to satisfy debts with its own assets, which will increase the risks of other parties doing business with it.8This question requires candidates to deal with the legal issues relating to the transfer of contract under the Contract Law of China.(a)There was a contract between Aishen Garment Co and Conka Sales. The reasons to support this conclusion include:(i)In accordance with Article 89 of the Contract Law, where the rights and duties are transferred together, provisions ofArticles 79, 81 to 83 and 85 to 87 shall apply. This means that a party may, subject to the conditions as set in theprovisions, transfer its rights and obligations to a third party.(ii)In accordance with the relevant provisions listed in Article 89 of the Contract Law, a creditor shall notify the debtor in the case of the transfer of his credit and a debtor shall obtain the consent from the creditor in the case of the transfer ofhis obligations. Bulinger Store was a creditor to receive the goods and as a debtor to pay the price. Therefore, BulingerStore should notify the transfer to and obtain consent from Aishen Garment Co. In this case, Bulinger Store issued awritten notice to Aishen Garment Co. Therefore, the transfer of rights satisfied the requirements of the law.(iii)Bulinger Store Co issued a written notice to Aishen Garment Co, but failed to obtain consent from the latter. However, Aishen Garment Co sent a fax to advise Conka Sales to receive the goods, and actually delivered 10,000 piecesof sportswear as well as receiving the price paid by Conka Sales. This meant that Aishen Garment Co acknowledged thetransfer of contractual rights and obligations to Conka Sales.(b)In accordance with Article 81 of the Contract Law, where a creditor transfers his rights, the transferee acquires rightsaccessory to the creditor’s rights, unless the accessory right is exclusive for the creditor himself. Conka Sales, as a transferee, acquired the accessory right when it acquired the right to the goods. Hence, it was entitled to claim damages against Aishen Garment Co for the defects of the goods.9This question requires candidates to deal with the legal issues relating to derivative litigation under the Company Law of China.(a)Ms E was entitled to bring a lawsuit against Mr A. The legal basis for this conclusion is Articles 21, 150 and 152 of theCompany Law. The controlling shareholders, actual controllers or directors of a company shall not, by taking advantage of their affiliate relationship, damage the interests of the company. Where any of the above-mentioned persons violates laws or articles of association of a company and causes damages to a company, such person shall be liable for the damages. If sucha situation occurs, any shareholder may directly bring a lawsuit against the director, subject to the conditions as prescribedby the Company Law.(b)In accordance with Article 152 of the Company Law, the following conditions shall be satisfied:(i)Ms E requests the supervisory board in writing to bring a lawsuit against the director who causes the damage;(ii)the supervisory board, upon its receipt of Ms E’s request, fails to file a lawsuit within 30 days upon the receipt of such request;(iii)Ms E brings a lawsuit against the Mr A for the interests of the company, in her own name.(c)Assuming Ms E was granted a favourable judgement by the court, the beneficiary should be T enda Co Ltd. Although Ms Ebrought the lawsuit in her own name, the legal action was for the interests of the company. Therefore, the result of such a legal action should be attributed to the company.10This question requires candidates to deal with the legal issues relevant to the declaration of credits and the legal effect of bankruptcy procedures on the pending case under the Enterprise Bankruptcy Law of China.(a)In accordance with Article 20 of the Enterprise Bankruptcy Law, after the people’s court accepts an application for bankruptcy,any pending civil action involving the relevant debtor shall be suspended. Hence, the pending case between Construction Company and Dalie Co should be suspended. The action can be resumed after a bank takes over Dalie’s assets.(b)Industry Bank should declare its credit with the court accepting the bankruptcy application, submit relevant legal documentsto prove its credit and clarify the amount of credit as well as the existence of guarantee on part of the credit. Among its total credit of RMB 20 million yuan, Industry Bank was a general creditor for RMB 8 million yuan.(c)Merchant Bank was entitled to declare its credit and join the bankruptcy procedure. In accordance with Article 50 of theEnterprise Bankruptcy Law, the joint and several creditors may choose one from among them to declare their creditors’ right or may jointly declare the creditors’ right together. Dalie Co provided guarantee for a loan to Merchant Bank, but the principal, Jiqing Company, failed to settle the debt. Merchant Bank, as a creditor and guarantee, was entitled to choose Dalie Co to declare its credit.Fundamentals Level –Skills Module, Paper F4 (CHN)Corporate and Business Law (China) December 2012 Marking Scheme 18–10 A thorough answer which states the ways to deal with the situations in which an assignment of contract takes place, anda dispute between the assignee and the other party of the contract is brought to the people’s court. Especially the answercorrectly states that this is a procedural action during the litigation.6–7An answer which states correctly any two parts among the three parts and the nature of such a way to deal with the said situation, but fails to state the remaining part.3–5An answer which states correctly any one of the three parts, but fails to give any points for other two parts.0–2An answer which does not state any point or states very limited points in part (a) or part (b) or part (c).28–10 A thorough answer which explains a non-competition clause in a labour contract, and states the persons who are subject to non-competition obligations and the conditions and term of duration for a clause of non-competition in a labour contract.6–7An answer which explains a non-competition clause, and states some points in part (b) and part (c). As an alternative, an answer which fails to explain a non-competition clause but states all points in part (b) and part (c).3–5An answer which explains the basic meaning of a non-competition clause in part (a), but fails to state or states very limited points in part (b) and part (c). As an alternative, an answer which fails to explain a non-competition clause in part (a),but states some points both in part (b) and part (c), or states all points in part (c) but no point in part (b).0–2An answer which shows little or no knowledge of this area. As an alternative, an answer which fails to explain a non-competition clause, and fails to state any points both in parts (b) and (c), or states limited points in part (b) or (c). 38–10An answer which explains a pre-contractual liability and its difference with the liability for breach of contract, and states the conduct that will result in pre-contractual liability.5–7An answer which explains the basic meaning of a pre-contractual liability and its major difference with the liability for breach of contract in part (a), and states some points in part (b). As an alternative, an answer which explains some pointsto pre-contractual liability and its major difference with the liability for breach of contract in part (a), but fails to state anypoint in both part (b).3–4 An answer which explains some points in part (a), and fails to state or states very limited points in part (b). Alternatively, an answer which fails to explain the term and its major difference with the liability for breach of contract in part (a), butstates some points in part (b).0–2An answer which shows little or no knowledge of this area.48–10An answer which states the composition of the board of directors of a general limited liability company and that of a limited liability company incorporated by two or more state-owned enterprises, as well as the way to deal with the situation inwhich the numbers of directors are less than a quorum due to various causes.5–7An answer which states correctly parts (a) and (b), or correctly states parts (b) and (c). As an alternative, the answer states some points in any one of the three parts.3–4An answer which shows a limited understating of the rules on the composition of directors in different limited liability companies in parts (a) and (b), fails to state the ways to deal with the situation in which the numbers of directors are lessthan a quorum in part (c). Alternatively, the answer fails to state the composition of the board of directors in a generallimited liability company in part (a), but states major points in part (b) or (c).0–2An answer which shows little or no knowledge of this area.58–10An answer which explains the term rectification, and states correctly the legal effect of the rectification on the right of guarantee during the period of rectification and the possibility of setting a guarantee during the period of rectification by abankruptcy administrator.5–7An answer which explains the term rectification, states some points in part (b). As an alternative, an answer which fails to explain the term rectification, but states correctly the legal effect of rectification against the right of guarantee and thepossibility of setting a guarantee by a bankruptcy administrator in the period of rectification.3–4An answer which explains the term rectification, but fails to state any points in part (b). Alternatively, an answer which fails to explain the term in part (a), but states some points in part (b).0–2An answer which shows little or no knowledge of the area.68–10An answer which explains a takeover by offer, states correctly the ways to deal with the shares of a listed company purchased after the expiration of the duration of takeover by offer and the way to deal with the enterprise form of a listedcompany purchased after the completion of takeover.5–7An answer which explains a takeover by offer, states some points in part (b). As an alternative, an answer which fails to explain a takeover by offer, but states all or most of points in part (b).3–4An answer which gives a correct answer to any one of part (a) or (b). As an alternative, the answer gives limited points in both part (a) and (b).0–2An answer which shows little or no knowledge of the area.78–10An answer which describes the acts that shall be regarded as fraudulent behaviour, states correctly the reasons why such acts shall be regarded as fraudulent behaviour.5–7An answer which describes any two kinds of acts that shall be regarded as fraudulent behaviour, states some reasons in part (b). As an alternative, an answer which describes all the acts that shall be regarded fraudulent behaviour in part (a),but fails to state the reasons in part (b).3–4 An answer which describes any one kind of the acts that shall be regarded as fraudulent behaviour, states limited points in part (b). Alternatively, an answer which describes any two kinds of the acts that shall be regarded as fraudulentbehaviour, but fails to state any reasons in part (b).0–2An answer which shows little or no knowledge of the area.88–10An answer which correctly deals with the legal issues relating to the conditions for the transfer of contract and the accessory rights along with the transfer of rights.5–7An answer which correctly states that there was a contract between Aishen Garment Co and Conka Sales and the rules relating to accessory rights but states merely some reasons to support the answer. Alternatively, an answer which correctlystates the existence of a contract between Aishen Garment Co and Conka Sales and the reasons to support such aconclusion, but fails to answer the question in part (b).3–4An answer which shows some understanding of the legal issues and gives only a correct conclusion of part (a) or (b), but fails to give any reasons to support the conclusion.0–2The answer is very weak, showing no, or very little, understanding of the question.98–10An answer which shows a complete understanding of the rules as to the issues of derivative litigation in parts (a), (b) and(c), and gives reasons to support the conclusions to the question.5–7An answer which gives correct conclusions to any two parts among parts (a), (b) and (c), and gives relevant reasons to support such conclusions. Alternatively, an answer which gives correct conclusions to three parts, but fails to state, orstates limited, points of reasons to support such conclusions.3–4An answer which gives merely one correct conclusion among three parts, and states the reasons to support such conclusion.0–2An answer which shows no, or very little, understanding of the question.108–10An answer which gives a complete answer to each part of the question and gives correct reasons to support the answer.5–7An answer which shows a good understanding of the rules to deal with the pending case where the court accepts an application of bankruptcy against a debtor, and any one of the ways to deal with various forms of debts due by the debtor.Or as an alternative, an answer which shows a sound understanding of any one part among the three parts and gives acorrect reason to support such conclusion.3–4An answer which shows limited understanding of the rules to deal with the pending case in part (a) or the ways to deal with the debts secured by mortgage in part (b), or the ways to deal with the debts under a personal guarantee in part (c),but with very limited reasons.0–2An answer which shows very little or no understanding of the question.。
ACCA F2 slides
y = a + bx Where a is the y value when x is 0, and b is the change in y when x increases by one unit.
Regression
In the context of cost estimation : y represents the total cost x represents the production volume in units a represents the total fixed costs b represents the variable cost per unit
Good information
The ‘ACCURATE’ acronym:
– A – Accurate – C – Complete – C – Cost-effective – U – Understandable – R – Relevant – A – Accessible – T – Timely – E – Easy-to-use!
EV = ∑px Where p = probability of outcome occurring x = outcome.
When using Expected Values : •Only accept projects if EV is positive •With mutually exclusive options, accept the one with the highest EV.
Chapter 2
Types of cost and cost behaviour
Classifying costs
Production Costs
F2重点例题分析
声明：考官屡次在考试报告中明确指出猜题的诸多弊端，同时他强调了只有完全深入的掌握了大纲要求的知识点才能顺利通过考试。
这也是ACCA对所有考生的基本要求。
本文并非对2010 6 月的考试进行预测，而是对考试大纲进行梳理，突出重要的知识章节，以帮助考生能更好的备考。
重点例题分析以下是针对2009年12月份考试出现的错误率（大于70%）最高的题目，Example 1A machine is no longer used by a company. It could be sold now for net proceeds of $300. Its only other use is on a short-term contract which is under consideration. The variable running costs of the machine during the period of the contract would be $400. On completion of the contract the machine would have no realisable value and would cost $150 to dismantle and remove.What is the total relevant cost of using the machine on the contract?A $450B $550C $700D $850官方解释：The correct answer was D. This question tested Sections F2(b) and (c) in the Study Guide, which require candidates to be able to calculate relevant costs for overheads and those for non-current assets.By not selling the machine now there is an opportunity cost of $300, the variable running cost($400) are relevant and at the end of the contract the dismantling and removal cost ($150) is also relevant. This gives a total relevant cost of $850.Answer B was chosen by more than 50% of the candidates. This wrong answer could have been obtained in two ways. First as $300 + $400 – $150, the mistake here is to treat the dismantling cost as revenue from the sale of the machine. Second as $400 + $150, the mistake here is to regard the realisable value now as being non-relevant.解释：这是一道考核固定资产相关成本的考题。
ACCA历年考题f2_2006_dec_ppq
Sales Production
Month 1 Month 2
3,800
4,400
3,900
4,200
The opening inventory for Month 1 was 400 units. Profits or losses have been calculated for each month using both absorption and marginal costing principles.
(1 mark)
3 Regression analysis is being used to find the line of best fit (y = a + bx) from eleven pairs of data. The calculations have produced the following information: Σx = 440, Σy = 330, Σx2 = 17,986, Σy2 = 10,366, Σxy = 13,467 and b = 0.69171
Units (2 marks)
2 The following assertions relate to financial accounting and to cost accounting: (i) The main users of financial accounting information are external to an organisation. (ii) Cost accounting is that part of financial accounting which records the cash received and payments made by an organisation.
ACCA P1 Global June 2012 - answers (ACCA P1 2012年6月 真题 答案)
Professional Level – Essentials Module, Paper P1Governance, Risk and Ethics June 2012 Answers 1(a)Risk appetiteExplanationRisk appetite describes the willingness of an entity to become exposed to an unrealised loss (risk). It is usually understood to mean the position taken with regard to two notional preferences: risk aversion and risk seeking. Both preferences are associated with different levels of returns: those that are risk-seeking favour higher risks and higher returns with the converse being true for the risk averse.Risk-averse entities will tend to be cautious about accepting risk, preferring to avoid risk, to share it or to reduce it. In exchange, they are willing to accept a lower level of return. Those with an appetite for risk will tend to accept and seek out risk, recognising risk to be associated with higher net returns.Risk appetite and selectionThe Jayland option has a higher political risk, a threat to the integrity of the company (by paying the bribe) and an element of reputation risk. There is also a risk arising from the lack of business culture in Jayland and a possibility that it will be more difficult to maintain normal operations there than in Pealand. Offset against these risks is the potential return of $2 billion over ten years, which is twice that of the Pealand option.The Pealand option has negligible political risk but a slightly higher risk that internal controls will be difficult to implement. It has a much lower likelihood of reputation risk and there is no risk connected with bribery. The return is half that of the Jayland option (for an approximately equal investment value).The two options offer two different risk and return profiles: the Jayland option offers a higher return but a higher risk profile and the Pealand option offers a lower return but also a lower risk profile. If the company has a higher risk appetite it is more likely to choose Jayland and if it has a lower risk appetite it is likely to select the Pealand option.(b)AAA seven-step model1.What are the facts of the case?The facts of the case are that there are two investment options and each has a different ethical and risk profile althoughthe AAA model is mainly concerned with the ethical aspects. The ability to operate the necessary internal controls forHayho manufacturing also differs between the two options. Only one option can be pursued and both are capable ofmaking an acceptable level of return.2.What are the ethical issues?The ethical issues are over the potential complicity of Hayho in supporting a corrupt regime in Jayland, in paying whatappears to be a bribe to Mr Popo under the Jayland option and in operating under less stringent regulatory conditionsin Jayland compared to Pealand. Another issue to consider is that it is alleged the president of Jayland maintains orderby abusing the rights of the people. The company is very sensitive to allegations of human rights abuses after criticismsof Hayho were made in Arrland recently and it is reluctant to expose itself to similar criticisms again.A further ethical issue is whether there is a corporate social obligation for companies to invest in developing ortransitional economies to help stimulate these economies. However, these disadvantages have to be weighed againstthe likelihood of making twice the return for shareholders in Jayland against the option of operating sustainably in amore stable Pealand. In Pealand, there may be ethical issues concerning taking over an existing workforce and changingworking terms and conditions, perhaps in terms of changed expectations, contractual issues and redundancies.3.What are the norms and principles that apply?The norms and principles that apply in this situation are that business investment decisions should be taken on a soundcommercial basis with risk, return and ethical considerations fully taken into account.The case says that the company seeks to ‘always uphold the highest standards of integrity, human rights andenvironmental protection whilst at the same time ‘responsibly’ supporting developing countries by providing jobs andopportunities to enable greater social and economic development.’This would tend to favour decisions that do not involve bribery (against integrity), human rights abuses (perhaps throughsupporting corrupt governments), but at the same time seeking, where possible, to use investments to support localeconomic development (perhaps by investing in developing countries, all other things being equal).4.What are the alternatives?The first alternative is to invest in Jayland, where a ‘new-build’ factory would enable Hayho to implant its culture andsystems but where there is a poorly developed education system, a potentially unstable political environment and anabsence of internal control and corporate governance regulations.The other alternative is the Pealand option, to take over an existing plant and an inherited workforce in a more highlyregulated business environment.5.Which option is most consistent with norms and principles?Both options have strengths and weaknesses, depending upon how the different factors are evaluated. The J aylandoption would meet the criteria for financial acceptability and would be favourable through supporting economic growthand by providing net additional employment in a developing country.The option most consistent with stated norms and principles is the Pealand option. This option has the benefit of inheriting a trained and competent workforce and avoids the reputation risk of providing credibility for the Popo regime and of being exposed, perhaps by a whilstleblower, for paying the ‘royalty’ (which is effectively a bribe to Mr Popo). The Jayland option would provide a greater financial return and provide net additional employment in a developing country.But it also would violate the principle of sound risk management because investing in an unstable and potentially hostile political environment could expose Hayho to unacceptable levels of long-term operational, financial and reputational risk.6.What are the consequences of each option?In J ayland, as opposed to Pealand, a completely new factory would be built providing new additional employment, although there could be an issue with sourcing the appropriate staff, given the poor levels of education and training. The Jayland option would provide a higher potential return to shareholders, but at a greater risk. It would make implementing the internal controls potentially easier but would risk reputation-damaging allegations of supporting Mr Popo’s regime.Were the ‘royalty’ to be made public, it would have severe consequences for the trustworthiness of the Hayho board, having given the reassurances it did after the Arrland incident.The Pealand option would make a smaller return and involve lower risk, but could introduce potential problems with implementing the necessary internal controls. This option would be more ethically acceptable. Hayho would be severely criticised for supporting a corrupt regime if it invested in Jayland. But if it invested in Pealand, no bribery would be necessary and it could publicise the fact that it chose to invest in Pealand over Jayland because it is seeking to honour its commitments made after the previous Arrland incident.7.What is the decision?The decision most aligned to the company’s stated norms and principles is the Pealand option. Other powerful countervailing factors would also have an influence, however, as risk and internal control considerations would also be taken into account.[Tutorial note:reward answers arguing for Jayland if shown to be based on reasoning from step 6](c)General purposes of internal control systems and main challenges.General purposesThe first general purpose of internal control is to achieve the orderly conduct of business by facilitating effective and efficient operation of an organisation’s activities. In doing this, it must be able to respond appropriately to relevant risks and to configure activities to be able to achieve the organisation’s strategic objectives. This includes safeguarding the assets of the organisation from external and internal threats and to ensure that all actual and potential liabilities and sources of loss are identified and controlled. The protection of value is important in underpinning confidence in internal controls and in providing the capacity for future value adding.Internal controls are essential in ensuring the robustness, quality and timeliness of both internal and external financial reporting. The provision of this information is important in managing internal systems (e.g. budgetary controls) and in maintaining and cultivating confidence among shareholders and capital markets. This involves maintaining accurate records and processes capable of generating and processing the relevant information.Internal control is necessary to ensure compliance with any external laws, standards or regulations that apply. These could arise from companies’ legislation, listing rules or, in some industries, regulations imposed by sector-specific regulators.Main challengesJayland was very under developed until relatively recently and the national culture is, according to Emily Baa, unfamiliar with modern business practice and behaviour. Achieving effective and efficient operation of the business would be an early priority for the Hayho investment and this limitation would necessitate substantial initial training and cultural-familiarisation.If these cultural values (e.g. time-keeping, work commitment, honesty of workers, etc) cannot be taken for granted in a national culture then it represents a major obstacle in achieving normal plant operation.Emily reported an unknown security situation in the region with regard to the safeguarding of assets. Being able to ensure that non-current assets owned by Hayho are secure and being used for the intended purpose is an essential element of internal control. The value of Hayho belongs to its shareholders and it would be irresponsible of the board (as agents) to invest in assets in J ayland unless reasonable assurances could be given that they will be safe from sabotage, damage, theft, deterioration or inefficient utilisation.Emily’s third point was about the level of necessary skills in the local labour pool. She mentioned the state of quality control and accounting skills and both of these are necessary for a sound system of internal control.Appropriate quality control staff are necessary to ensure that the product complies with the stringent international product standards that apply to Hayho’s products. Where technical skills such as these are difficult to obtain in local labour markets, unskilled people may need to undergo training, or expatriates may need to be persuaded to move to the Jayland facility.Guaranteeing that outputs from the Jayland plant were fully compliant with all applicable standards would be an important early priority for customers and investors and so this issue is likely to be of great importance.Accounting skills are necessary for guaranteeing accurate and complete accounting records and for reliable financial information. Gathering required data and reporting to management at head office is required, for example on metrics such as variance against agreed targets. For a new investment such as those being considered by the Hayho board, the provision of accurate and timely information is essential in controlling activities under either of the options.(d)(i)Meaning of accountability and Mendelow.Briefing notes for board meeting.Prepared for Helen Duomo, chief executive.By Emily BaaWednesday 20 June, 2012.Accountability of the Hayho boardThe two letters received raise important issues of accountability, and specifically, the issue of to whom the board of Hayho is accountable. In reflecting on how to deal with this and how to frame our response, it may be helpful to consider the accountability situation we face as a board.Accountability is a k ey relationship between two or more parties. It implies that one party is accountable to, or answerable to, another. This means that the accountable entity can reasonably be called upon to explain his, her or its actions and policies.This means that the accountable party can be held to account and may be required to actually give an account. This has the potential to influence the behaviour of the accountable party, in this case Hayho, because of the knowledge that they will have to answer for it when they give that account.Whilst it is clear that the board is accountable to the shareholders as stewards of their investment, it may be the case, nevertheless, that the board may need to account to WB because of its influence among politicians and in wider society, as outlined below.Influence of Watching BusinessThe Mendelow framework is a way of mapping stakeholders with regard to the two variables of interest and power. The combination of these is a measure of any given stak eholder’s lik ely influence over an entity such as Hayho. The framework is dynamic in that stakeholders move around the map as their power and interest rise and fall with events.WB has a moderate degree of power and a variable degree of interest. Because its interest (in Hayho) has recently increased, its overall influence has risen. Our response to WB must be responsive to this.WB’s power derives from its ability to conduct research and mobilise opinion, including among policymakers and trade organisations, against businesses like Hayho. We do not need to agree with its agenda to appreciate its power. Its power is expressed as influence when its interest is also increased.It was news of our possible investment in Jayland that increased WB’s interest in Hayho. This, combined with its evident power, increases its net influence over Hayho. This makes WB difficult to ignore in our decision over whether to invest in Jayland or Pealand.(ii)Agency and demands from WBResponsibilities to shareholdersThe board of Hayho exists in an agency relationship with its shareholders, who collectively own the company and have the legal and moral right to determine objectives. As agents of our shareholders and appointed by them, we have a fiduciary duty to seek to manage the company’s resources for their overall economic benefit. In the case of Hayho, as with most business organisations, this involves maximising returns consistent with our complying with relevant laws, regulations and norms. Quark Investments, as one of our major shareholders, has every right to remind us of this duty and we should take its reminder very seriously.Lobby group demandsWhilst being well-meaning, the lobby group WB is against one of the investment options we have at this time. It claims that an investment in Jayland would be damaging to human rights in that country. Without commenting on the accuracy or validity of that claim, we should remind colleagues why we might think carefully about the investment, as it would bring us into conflict with WB.First, WB is respected and its views are trusted by many people. In terms of reputation, it has highlighted our problems in Arrland and, as a result of that, has been monitoring our activities. We may need to consider public opinion before going ahead with a potential Jayland investment as we need the general support of society to operate.Second, WB has influence among politicians and policymakers both in this country and abroad. We risk the censure of influential people and increase the pressure for increased regulation if we disregard or act against the lobby group’s demands. Our reputation in international markets is one of our strategic assets and it may compromise our commitment, given the Arrland incident, if we were not to uphold the highest standards of integrity, human rights and environmental protection from now on.Third, WB is very adept at mobilising public opinion through the media. This means that it can stimulate interest in conditions in Jayland and we would be likely to be heavily scrutinised on an ongoing basis were this investment to be made. This could attract public anger and risk disruptions, such as boycotts of our products.Because of these issues, it would seem prudent to consider these issues as a part of our investment appraisal between the Jayland and Pealand options.2(a)Independence and NEDs.Define independenceIndependence is a quality possessed by individuals and refers to the avoidance of being unduly influenced by a vested interest. This freedom enables a more objective position to be taken on issues compared to those who consider vested interests or other loyalties.Independence can be threatened by over-familiarity with the executive board, which is why many corporate governance codes have measures in place to prevent this. These include restrictions on share option schemes for NEDs, time-limited appointments and bans on cross-directorships. Other restrictions, depending on jurisdiction and code, include salaries being set at an appropriate level for NEDs, a compulsory number of years after retirement from a company before being eligible fora NED role (if ever), and no close personal relationships between executives and non-executives.Benefits of greater independenceIn the case of the independence of non-executive directors, Mr Louse is arguing that those with no previous contact with the other members of the board and who come from outside the industry that Zogs is in, will be more independent than those who may have some form of vested interest. In this he is only partly accurate: whilst succession to a NED role from an executive position in the same company is likely to threaten independence, appointments to NED positions from other companies within the same sector are quite common and still provide industry knowledge to a board.The first benefit of greater independence is that independent people brought in as NEDs are less likely to have prior vested interests in terms of material business relationships that might influence judgments or opinions. Such vested interests may involve friendships with other board members or past professional relationships. Past or current equity holdings in companies within the industry may encourage unhelpful loyalties (many CG codes restrict NEDs from holding shares or share options in companies they are on the boards of).Second, they are likely to have fewer prejudices for or against certain policies or individuals as working relationships will not have been built up over a number of years. Accordingly, they are likely to start from the ‘ground up’ in seeking clarifications and explanations for each area of discussion. Previous rivalries, alliances or embedded ideas would not frustrate discussions and this may allow for more objective discussions.Third, independent non-executive directors are more likely to challenge the established beliefs of less independent people (such as executive directors). This is a more effective way of scrutinising the work of board committees and of increasing their effectiveness. This has the advantage of challenging orthodoxy and bringing fresh perspectives to committee discussions.Disadvantages of greater independenceSome NEDs are appointed because of their connections with the existing board, either through prior industry involvement, prior executive membership or prior service on another board with one or more other directors. These are considered by Mr Louse to be less independent.There are, however, a number of advantages when NEDs have some familiarity with a company and board they are joining.A key non-executive role, including in board committees, is providing strategic advice. This can often arise from a thoroughknowledge of the strategic issues in a company or industry. Retired executive directors, like Mr Louse, sometimes serve as NEDs in the same company and are thus able to bring their experience of that industry and company to bear on committee discussions (although in some countries, there are time restrictions on executives becoming NEDs in the same company).Some level of prior connection is advantageous when some level of technical knowledge is required. Therefore, Mr Louse’s comments about independence depending upon NEDs’ needing to be from a different industry background or sector is not quite appropriate. When serving on an appointments committee, for example, knowledge of the industry and the technical aspects of a company’s operations will increase effectiveness. This might apply in electronics, chemicals, accounting services and financial services, for example. When serving on a risk committee in, for example, a bank, a technical knowledge of key risks specific to that particular industry can be very important.The contacts and personal network s that a NED with industry experience can bring may be of advantage, especially for informal discussions when serving on a nominations committee, for example.(b)Risk committee and criticise Mr Louse’s understanding.RolesThere are five general roles of a risk committee. The first is agreeing and approving the organisation’s risk management strategy, including strategies for strategic risks. This is likely to be drawn up in discussion with other parts of the organisation, including the main board.Second, the risk committee reviews reports on key risks prepared by departments on operational risks. These might be reports from operations (e.g. production), finance or technical departments on risks that specifically may affect them.Third, it monitors overall risk exposure and ensures it remains within the limits established by the main board. Exposure is generally defined as the totality of losses that could occur and the acceptable exposure will vary according to the risk strategy.Some organisations accept a higher exposure than others because of their varying risk appetites.Fourth, the risk committee assesses the effectiveness of risk management systems and policies. This is usually based on past data, where a risk has materialised, or ‘stress testing’ of systems where the risk has not yet materialised.Fifth, the risk committee approves and agrees any statements or disclosures made to internal or external audiences, such as risk reporting to analysts or in the annual report. Shareholders have the right to expect accurate and relevant reports on the risks in their investments, and so any reports issued outside the company need to be approved by the risk committee.Criticise Mr Louse’s understandingMr Louse has a weak understanding of the roles and purposes of a risk committee.First, ‘stopping risks affecting’ companies is not within the remit of a risk committee.Some risks affect everybody including businesses; others apply because of industry membership, geographical location, business activity, strategic positioning or business strategy. The role of a risk committee is to identify, review and construct a strategy for managing those risks.Second, he complained that the risk committee was ‘always asking for more information, which was inconvenient’. Gathering information is a crucial part of a risk committee’s role and it is in the company’s overall interest to ensure that information supplied to the risk committee is accurate, current and complete.Third, he misunderstands the nature of the committee’s role if he perceives it to be ‘gloomy and pessimistic’.This is an understandable but unfair criticism. Risks are, by their nature, things that might go wrong or potential liabilities, but the reason why risks need to be understood is to ensure the ongoing success and prosperity of Zogs Company, and that is a very positive thing.Finally, he wrongly believed that all material risks were external risks and so the risk committee should be looking outwards and not inwards. Risks can be internal or external to the company and many internal risks can be highly material such as financial risks, liquidity risks, operational risks, etc.(c)Risk monitoring more important in larger companies than in smaller companies?Small companies exist in different strategic environments to large companies and because of this, a number of differences apply when it comes to corporate governance systems. There are a number of compliance issues, for example, where large companies are required to comply with provisions that smaller companies are not. Some of the differences in regulation and shareholder expectations are driven by differences in the legal status of the organisation (e.g. whether incorporated, whether listed, where domiciled, etc).In the case of risk management systems in smaller companies, there will be a lower overall (aggregate) loss to shareholders than in a large company in the event of a major risk being realised. In larger companies, especially listed companies, a major event can affect markets around the world and this can affect the value of many funds including pension funds, etc. This is unlikely to be the case in any given smaller company.Many smaller companies, including SmallCo, are privately owned and they are therefore not subject to listing rules and, in some cases, other legal regulations. In many smaller companies, any loss of value when a risk is realised is a personal loss to owners and does not affect a high number of relatively ‘disconnected’ shareholders as would be the case in a large public company.Risk probability and impact is often correlated with size. Smaller companies have fewer risks because of their lower profiles, fewer stakeholders and less complex systems than larger organisations. Accordingly, the elaborate risk management systems are less necessary in smaller companies and could be a disproportionate use of funds. This is not to say that smaller companies do not face risks, of course, but that the impacts, say to shareholders or society, are less with a smaller rather than a larger company because of the totality of the losses incurred.The costs of risk monitoring and control may often outweigh the impacts of losses being incurred from risks, if not in a single financial period then maybe over a period of years. There are substantial set-up fixed costs in establishing some risk management systems and, in some cases, variable costs also (e.g. linked to production output). With fewer total risks, there could be less value for money in having risk controls.In summary, risk committees and risk mitigation systems are more important in larger companies than in smaller companies.However it is good practice for all companies, however small, to carry out some form of risk monitoring in order to remain competitive in their environment.3(a)Conflict of interest and discuss the consequences.Conflict of interestA conflict of interest occurs when a person’s freedom of choice or action is constrained by a countervailing interest, whichmeans that the most objectively correct course of action cannot be taken. The discretion to act correctly is fettered by the need to protect a related but contradictory interest. In the case of Jojo Auditors, Jack Hu experienced a conflict of interest between carrying out the agreed policy of dismissing all students assessed as ‘poor’ (such as Polly Shah) and his familiarity with the Shah family and his making a personal gain from the family in the form of free holidays.ConsequencesMr Hu acted against the best interests of the firm including his fellow partners. In his role as managing partner, he owes it to the other partners, and to the employees and clients of the firm, to act responsibly and always in the best interests of the firm. His conflict of interest prevented this from happening.In acting as he did, Mr Hu compromised the other committee members and made them compromise their own professional values. Both the training manager and the representative from human resources are engaged in order to maximise their benefit。
ACCA 2012年6月份考官报告 F2 Management Accounting
Examiner’s reportF2/FMA Management AccountingJune 2012General CommentsThis was the second examination under the new syllabus. This syllabus amalgamates the old CAT T7 Planning control and performance management paper (now the FIA FMA paper) and the old ACCA F2 Management accounting paper, into one common syllabus and examination. The two-hour paper contained 50 multiple choice questions – each worth 2 marks. The mix of questions across syllabus heads was exactly in line with both the pilot paper and the December 2011 paper. The general performance of candidates was an improvement on December 2011, but none the less a little disappointing. The majority of poorly attempted questions were calculation based, but a significant minority were narrative. Questions that were poorly attempted were evenly spread across old and new syllabus areas. In general the FIA FMA candidates performed worse than their F2 counterparts.The following questions taken from the June 2012 examination are ones where the performance of candidates was weak. Each of these questions carried 2 marks and each related to a mainstream topic in the Study Guide.Sample Questions for DiscussionExample 1An investment centre earns a return on investment of 18% and a residual income of $300,000. The cost of capital is 15%. A new project offers a return on capital employed of 17%.If the new project were adopted, what would happen to the investment centre’s return on investment and residual income?Return on investment Residual incomeA increase decreaseB increase increaseC decrease decreaseD decrease increaseThe question relates to study guide reference E2f.The correct answer is D. The new project’s return on investment is less than that of the investment centre and this will result in a reduction in its return on investment. However because the project offers a return higher than the cost of capital it will increase the investment centre’s residual income. The most popular answer was C, with 29% of candidates mistakenly believing that the new project would result in a decrease in both return on investment and residual income. This mistake suggests a lack of understanding of residual income.Example 2.An investor has the choice between two investments. Investment Exe offers interest of 4% per year compounded semi-annually for a period of three years. Investment Wye offers one interest payment of 20% at the end of its four-year life.What is the annual effective interest rate offered by the two investments?Investment Exe Investment Wye4·00% 4·66%A5·00%B 4·00%4·66%C 4·04%D 4·04% 5·00%The question relates to study guide reference C5dThe correct answer is C. The answer can be arrived at by calculation (Investment Exe annual effective return = 1.022 – 1 = 0.0404 or 4.04% and investment Wye annual effective return = 1.200.25 – 1 = 0.0466 or 4.66%). Alternatively the answer can be “reasoned” out: investment Exe’s semi annual compounding must result in a higher effective annual rate than 4% (2 × 2%) and a 20% return over a 4 year period must have an effective annual rate of less than 5% (20% ÷ 4 years) when the compounding effect is allowed for. Just over 32% of candidates incorrectly selected option D . This suggests that although most candidates can convert a sub annual interest rate into an effective annual rate, many find it difficult to convert a multi year rate into an effective annual rate.Example 3A company uses standard absorption costing to value inventory. Its fixed overhead absorption rate is $12 per labour hour and each unit of production should take four labour hours. In a recent period when there was no opening inventory of finished goods, 20,000 units were produced using 100,000 labour hours. 18,000 units were sold. The actual profit was $464,000.What profit would have been earned under a standard marginal costing system?A $368,000B $440,000C $344,000D $560,000The question relates to study guide reference B2d.The correct answer is A.Standard absorption costing will include $96,000 of the period’s overhead (2,000 units × 4 labour hours × $12 per hour) in the valuation of closing inventory. Under standard marginal costing the $96,000 would be charged against the period’s profit resulting in a profit $96,000 lower than $464,000. This type of question is included in virtually every costing textbook and it is disappointing that only a minority of candidates selected the correct alternative. The most common answer was B, ($464,000 – 2000 units × $12 per labour hour) suggesting some misunderstanding of overhead absorption rates or careless reading of the question. C was also a popular answer ($464,000 – 2,000 units ÷ 20,000 units × 100,000 hours × $12 per labour hour) indicating that many candidates believed that inventories should be valued on the basis of actual labour hours in a standard absorption costing system. On the bright side, only a small proportion of candidates selected alternative D, which indicates that most candidates understand that in periods of rising finished goods inventories, absorption costing will show higher profits than marginal costing.Inevitably examiners’ reports focus on the more difficult questions that were badly attempted. The exam also contained a number of questions that were very well answered. In the examination candidates should ensure that they attempt the easier questions first to ensure they gain the “easy marks”. They can then go on to attempt the more difficult or time consuming questions last.Future candidates are advised to:∙Study the whole syllabus.∙Practise as many multiple choice questions as possible.∙Read questions very carefully in the examination.∙Attempt all questions in the examination (there are no negative marks for incorrect answers). ∙Try to attempt the “easy” examination questions first.∙Not to spend too much time on apparently “difficult” questions.∙Read previous Examiner’s Reports.∙Read Student Accountant。
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。
四川大学ACCA F2真题
23An organisation has the following total costs at three activity levels:Activity level (units)8,00012,00015,000T otal cost£204,000£250,000£274,000Variable cost per unit is constant within this activity range and there is a step up of 10% in the total fixed costs when the activity level exceeds 11,000 units.What is the total cost at an activity level of 10,000 units?A£220,000B£224,000C£227,000D£234,0004An organisation manufactures and sells a single product which has a variable cost of £24 per unit and a contribution to sales ratio of 40%. T otal monthly fixed costs are £720,000.What is the monthly breakeven point (in units)?A18,000B20,000C30,000D45,0005The following statements refer to qualities of good information:(i)It should be communicated to the right person.(ii)It should always be completely accurate before it is used.(iii)It should be understandable by the recipient.Which of the above statements are correct?A(i) and (ii) onlyB(i) and (iii) onlyC(ii) and (iii) onlyD(i), (ii) and (iii)6 A company is considering the launch of a new product at a high initial selling price.Which of the following statements is correct?A This is an example of strategic planning involving the application of penetration pricing.B This is an example of operational planning involving the application of penetration pricing.C This is an example of strategic planning involving the application of price skimming.D This is an example of operational planning involving the application of price skimming.3[P.T.O.7The following statements relate to an organisation’s management information system:(i)It is used only by top and middle management to aid in strategic and tactical decision-making.(ii)It generates both financial and non-financial information.(iii)It often uses a database system.Which of the above statements are correct?A(i) and (ii) onlyB(i) and (iii) onlyC(ii) and (iii) onlyD(i), (ii) and (iii)8Regression analysis is being used to find the line of best fit (y = a + bx) from five pairs of data. The calculations have produced the following information:Σx = 129Σy = 890Σxy = 23,091Σx2= 3,433Σy2= 29,929What is the value of ‘a’ in the equation for the line of best fit (to the nearest whole number)?A146B152C210D2459Which of the following is a feasible value for a correlation coefficient?A+1·2B0C–1·2D–2·010The following data relate to material J for last month:£Opening stock300 kg valued at3,300Purchases:4th400 kg for4,80018th500 kg for6,500Issues:13th600 kg25th300 kgUsing the LIFO valuation method, what was the value of the closing stock for last month?A£3,300B£3,500C£3,700D£3,900411 A jobbing company operates a premium bonus scheme for its employees of 75% of the time saved compared withthe standard time allowance for a job, at the normal hourly rate. The data relating to Job 1206 completed by an employee is as follows:Allowed time for Job 1206 4 hoursTime taken to complete Job 1206 3 hoursNormal hourly rate of pay£8What is the total pay of the employee for Job 1206?A£24B£30C£32D£3812 A paint manufacturer has a number of departments. Each department is located in a separate building on the samefactory site. In the mixing department the basic raw materials are mixed together in very large vessels. These are then moved on to the colour adding department where paints of different colours are created in these vessels. In the next department – the pouring department – the paint is poured from these vessels into litre sized tins. The tins then go on to the labelling department prior to going on to the finished goods department.The following statements relate to the paint manufacturer:(i)The mixing department is a cost centre.(ii) A suitable cost unit for the colour adding department is a litre tin of paint.(iii)The pouring department is a profit centre.Which statement or statements is/are correct?A(i) onlyB(i) and (ii) onlyC(i) and (iii) onlyD(ii) and (iii) only13The following statements relate to spreadsheets:(i) A spreadsheet consists of records and files.(ii)Most spreadsheets have a facility to allow data within them to be displayed graphically.(iii) A spreadsheet could be used to prepare a budgeted profit and loss account.(iv) A spreadsheet is the most suitable software for storing large volumes of data.Which of the above statements are correct?A(i) and (ii) onlyB(i), (iii) and (iv) onlyC(ii) and (iii) onlyD(iii) and (iv) only5[P.T.O.14 A company uses absorption costing with a predetermined hourly overhead absorption rate. The following situationshave both occurred:(i)Actual overhead expenditure exceeded planned expenditure; and(ii)Actual hours worked were less than the planned hours.Which of the following statements is correct?A Situation (i) would cause overheads to be over absorbed and situation (ii) would cause overheads to be underabsorbed.B Situation (i) would cause overheads to be under absorbed and situation (ii) would cause overheads to be overabsorbed.C Both situations would cause overheads to be over absorbed.D Both situations would cause overheads to be under absorbed.15 A company operates a job costing system. Job 812 requires £60 of direct materials, £40 of direct labour and £20 ofdirect expenses. Direct labour is paid £8 per hour. Production overheads are absorbed at a rate of £16 per direct labour hour and non-production overheads are absorbed at a rate of 60% of prime cost.What is the total cost of Job 812?A£240B£260C£272D£32016At the end of manufacturing in Process I, product K can be sold for £10 per litre. Alternatively product K could be further processed into product KK in Process II at an additional cost of £1 per litre input into this process. Process II is an existing process with spare capacity in which a loss of 10% of the input volume occurs. At the end of the further processing, product KK could be sold for £12 per litre.Which of the following statements is correct in respect of 9,000 litres of product K?A Further processing into product KK would increase profits by £9,000.B Further processing into product KK would increase profits by £8,100.C Further processing into product KK would decrease profits by £900.D Further processing into product KK would decrease profits by £1,800.The following information relates to questions 17 and 18:The standard direct material cost for a product is £50 per unit (12·5 kg at £4 per kg). Last month the actual amount paid for 45,600 kg of material purchased and used was £173,280 and the direct material usage variance was £15,200 adverse.17What was the direct material price variance last month?A£8,800 AdverseB£8,800 FavourableC£9,120 AdverseD£9,120 Favourable618What was the actual production last month?A3,344 unitsB3,520 unitsC3,952 unitsD4,160 units19Equipment owned by a company has a net book value of £1,800 and has been idle for some months. It could now be used on a six months contract which is being considered. If not used on this contract, the equipment would be sold now for a net amount of £2,000. After use on the contract, the equipment would have no saleable value and would be dismantled. The cost of dismantling and disposing of it would be £800.What is the total relevant cost of the equipment to the contract?A£1,200B£1,800C£2,000D£2,80020 A contract is under consideration which requires 800 labour hours to complete. There are 450 hours of spare labourcapacity for which the workers are still being paid the normal rate of pay. The remaining hours required for the contract can be found either by overtime working paid at 50% above the normal rate of pay or by diverting labour from the manufacture of product OT. If the contract is undertaken and labour is diverted, then sales of product OT will be lost.Product OT takes seven labour hours per unit to manufacture and makes a contribution of £14 per unit. The normal rate of pay for labour is £8 per hour.What is the total relevant labour cost to the contract?A£3,500B£4,200C£4,500D£4,900The following information relates to questions 21 and 22:In the following price, revenue and cost functions, which have been established by an organisation for one of its products, Q represents the number of units produced and sold per week:Price (£ per unit) = 50 – 0·025QMarginal revenue (£ per unit) = 50 – 0·05QT otal weekly cost = 1,000 + 15Q21What price per unit should be set in order to maximise weekly profit?A£15·00B£17·50C£25·00D£32·5022What would the weekly total contribution be if the price of the product was set at £20 per unit?A£2,000B£3,000C£5,000D£6,0007[P.T.O.8Section B – ALL FIVE questions are compulsory and MUST be attempted.1Fairfax Ltd manufactures a single product which has a standard selling price of £22 per unit. It operates a standard marginal costing system. The standard variable production cost is £9 per unit. Budgeted annual production is 360,000 units and budgeted non-production costs of £1,152,000 per annum are all fixed.The following data relate to last month:Budget Actualunits unitsProduction30,00033,000Sales32,00034,000Last month the budgeted profit was £200,000 and the actual total sales revenue was £731,000.Required:(a)Calculate the sales price and sales volume contribution variances for last month showing clearly whethereach variance is favourable or adverse.(4 marks)(b)Explain how the two variances calculated in (a) could be interrelated.(3 marks)(c)Calculate the BUDGETED profit for last month assuming that the company was using absorption costing.(4 marks)(11 marks)2Point Ltd uses the economic order quantity (EOQ) model to establish the reorder quantity for raw material Y. The company holds no buffer stock. Information relating to raw material Y is as follows:Annual usage48,000 unitsPurchase price£80 per unitOrdering costs£120 per orderAnnual holding costs10% of the purchase priceRequired:(a)Calculate:(i)the EOQ for raw material Y, and(ii)the total annual cost of purchasing, ordering and holding stocks of raw material Y.(4 marks) The supplier has offered Point Ltd a discount of 1% on the purchase price if each order placed is for 2,000 units.(b)Calculate the total annual saving to Point Ltd of accepting this offer.(3 marks)(c)List FOUR examples of holding costs.(2 marks)(9 marks)9[P.T.O.3Merryl Ltd manufactures four components (E, F, G and H) which are incorporated into different products made by the company. All the components are manufactured using the same general purpose machinery. The following production cost and machine hour data are available:E F G HVariable production cost (£ per unit)32273435Fixed production cost (£ per unit)614816General purpose machine hours per unit5678The fixed production costs represent a share of factory-wide costs that have been related to the individual components by using a direct labour hour rate. There are no fixed costs which can be specifically related to individual components.From next month the company’s monthly manufacturing requirements are for 2,000 units of each component. The maximum number of machine hours available for component manufacture is 35,000 per month.The company can purchase any quantity of each component from Sergeant Ltd at the following unit prices next month:E F G H£48£51£55£63Merryl Ltd aims to minimise its monthly costs.Required:(a)Calculate the shortfall in general purpose machine hours next month.(2 marks)(b)Determine how many units of which components should be purchased from Sergeant Ltd next month.(4 marks)(c)Briefly explain THREE other factors that the management of Merryl Ltd should consider before making a finaldecision to buy in components from Sergeant Ltd for next month.(3 marks)(9 marks)4Yeomen Ltd uses process costing and the FIFO method of valuation. The following information for last month relates to Process G, where all the material is added at the beginning of the process:Opening work-in-progress:2,000 litres (30% complete in respect of conversion costs) valued in total at£24,600 (£16,500 for direct materials; £8,100 for conversion).Costs incurred:Direct materials£99,600 for 12,500 litres of inputConversion£155,250Normal loss:8% of input in the period. All losses, which are incurred evenly throughout theprocess, can be sold for £3 per litre.Actual output:10,000 litres were transferred from Process G to the finished goods warehouse.Closing work-in-progress:3,000 litres (45% complete in respect of conversion costs).Required:(a)Prepare the Process G Account for last month in £ and litres.(10 marks)(b)Identify TWO types of organisation where it would be appropriate to use service (operation) costing. For eachone suggest a suitable unit cost measure.(2 marks)(12 marks)105Phoebe Ltd manufactures many different products which pass through two production cost centres (P1 and P2).There are also two service cost centres (S1 and S2) in the factory. The following information has been extracted from the budget for the coming year:P1P2S1S2Allocated and apportionedproduction overheads£477,550£404,250£132,000£96,000Number of employees30651015T otal machine hours68,00011,400T otal direct labour hours4,00014,000Service cost centre S1 costs are reapportioned to all other cost centres based on the number of employees. Service cost centre S2 only does work for P1 and P2 and its costs are reapportioned to these centres in the ratio 5:3 respectively.Required:(a)Calculate:(i)the machine hour absorption rate for cost centre P1, and(ii)the direct labour hour absorption rate for cost centre P2.(6 marks)(b)Explain the difference between production overheads that have been ‘allocated’ and those which have been‘apportioned’ to cost centres. Explain why some manufacturing companies are able to allocate electric power costs to production cost centres, whereas others can only apportion them.(3 marks)(9 marks)11[P.T.O.12Formulae Sheet End of Question Paper。
2012年金融英语证书考试FECT模拟试题-2_真题-无答案
2012年金融英语证书考试FECT模拟试题-2(总分100,考试时间90分钟)SECTION ONE (Compulsory)：Answer all ten questions in this section. Each question carries 1 mark. Multiple-choice questions: from the following four options, select a correct and fill in its labeling the brackets.1. A production function for a firm describes: ()A. What should be produced to maximize profit.B. What is technologically feasible when the firm produces efficiently.C. What revenue is earned from producing efficiently.D. What the firm produces with given inputs.2. Which of the following is not a characteristic of a competitive industry? ()A. There are many firms.B. All firms produce homogeneous products, which are substitutable for each other.C. There is a fierce price war among rivals.D. Firms can enter and exit the industry freely.3. The Central Bank in the open market buying and selling of securities is designed to: ()A. regulation bond pricesB. achieve profit maximizationC. regulate money supplyD. adjust prices level4. What unemployment is formed because of the economic recession? ()A. friction unemploymentB. structural unemploymentC. cyclical unemploymentD. natural unemployment5. After a long race on a hot day, a runner enjoys her first drink a lot, the second she enjoys less and she declines a third drink. This illustrates the principle of: ()A. Increasing marginal utility.B. Decreasing marginal utility.C. Increasing marginal cost.D. Decreasing marginal cost.6. On a hot day, the price and the quantity sold of ice creams both increase. This can reflect a: ()A. Shift in the demand curve to the right.B. Move along the demand curve.C. Shift in the demand curve to the left.D. Shift in the supply curve to the right.7. When a country’s currency appreciates, the country’s goods abroad become ______ and forei gn goods in that country become ______.A. cheaper... more expensiveB. more expensive... cheaperC. cheaper...cheaperD. more expensive... more expensive8. A US company is bidding for a contract in China. Its Chinese customer asks for a performance bond. What is the most likely course of action? ()A. It asks its bank to issue a tender bond which can be converted into a performance bondB. It gives up its bidC. It consults its bank about issuing a standby letter of creditD. It asks its bank to issue a performance bond9. There is a deficit in the federal budget when: ()A. Federal government spending is greater than federal tax revenues.B. U.S. imports are greater than U.S. exports.C. The total demand for money is greater than the total supply of money.D. U.S. imports are smaller than U.S. exports.10. Mrs. Jones purchased a 20-year Treasury bond bearing a 12% coupon rate. She purchased the bond at par ($1000). If rates fall to 9% what will be the new price of the bond? ()A. $1333B. $1500C. $750D. $900E. There will be no change in the price of the bond.SECTION TWO(Compulsory)：Answer the questions in this section. Reading Comprehension: (10 points)James Sigmund, CFA, is the Head of International Equity for Pell Global Advisors (PGA). Sigmund is considering investing in the country of Zuflak as part of an emerging market portfolio. Sigmund is aware of the risks in investing in emerging markets and is preparing a valuation report regarding this investment. He estimates that Zuflak government debt would be rated BB, and has gathered the following market information for use in analyzing Zuflak. Local Government Bond Yield = 11.50% U.S. 10 year Treasury Bond Yield = 4.50% U.S. BB rated Corporate Bond Yield = 7.75% Local Inflation Rate = 6.50% U.S. Inflation Rate = 3.00% To assist in his analysis of Zuflak, Sigmund has asked Stefano Testorf, CFA, to estimate a value for Kiani Corporation (Kiani), Oleg Industries (Oleg), and Malik Incorporated (Malik) - the three **panies domiciled in Zuflak that Sigmund has determined to have adequate liquidity for inclusion in PGA’s client portfolios. Testorf gives Sigmund a rough draft of his report and tells Sigmund that in order to account for country specific emerging market risks; he used a probability-weighted scenario analysis to adjust cash flows. Sigmund asks him, “Why didn’t you simply adjust the discount rate?” Testorf replies with three reasons: Reason 1: The country risk attributable to Zuflak can be diversified away according to modern finance theory, and should not be included in the cost of capital. Reason 2: Companies in emerging markets tend toexhibit wild price swings both up and down, therefore adjusting cash flows is the best way to account for these symmetrical country risks. Reason 3: Although Kiani, Oleg, and Malik are all domiciled in Zuflak, each of **panies will tend to respond differently to country risks. This makes it virtually impossible to adjust the discount rate for country specific risk **e up with an accurate valuation estimate. After careful analysis by Sigmund and his team, Sigmund decides that he wants to have exposure to Zuflak in his international portfolios. He is still unsure however, what the best way would be to establish the exposure. Sigmund discusses his concerns with Steve Solak, another portfolio manager with PGA. Solak suggests that Sigmund consider using a closed-end country fund to invest in Zuflak. Solak hands Sigmund a copy of a note that he had provided to a client listing facts about country-specific closed end funds. The note contained the following statements: Closed-end country funds provide an excellent means to access local foreign markets. Even nations that have restrictions on foreign investment are sometimes accessible using closed-end country funds. Closed-end country funds issue a fixed number of shares and are a great way to diversify a U.S.-dollar stock portfolio because of their low correlation with the U.S. stock market. Sigmund thanks Solak for the information and heads back to his office. As he is leaving, Solak asks him if he would have time later that afternoon to discuss the use of American Depository Receipts (ADRs).11. What is the best estimate of the country risk premium for Zuflak? ()A. 0.25%.B. 1.50%.C. 2.75%.D. 6.00%.12. To determine a valuation estimate for Oleg, Testorf assumes that local investors require a 5 percent real rate of return on companies with similar risk to Oleg. What is Oleg’s price-to-earnings (P/E) ratio, if **pany has an inflation flow-through rate of 65 percent? ()A. 13.75.B. 5.33.C. 3.00.D. 21.2513. In regard to Testorf’s reasons for incorporating emerging market risk into the valuation of Zuflak by adjusting cash flows rather than adjusting the discount rate, which of the following is TRUE?()A. Reasons 1 and 3 support Testorf’s cash flow adjustment, but reason 2 does not.B. All three of the reasons given support Testorf’s cash flow adjustment.C. Reasons 2 and 3 suppo rt Testorf’s cash flow adjustment, but reason 1 does not.D. Reason 1 supports Testorf’s cash flow adjustment, but reasons 2 and 3 do not.14. Due to the high inflation rate of the local country, Testorf calculates the return on invested capital (ROIC) f or Kiani by revaluing **pany’s fixed assets. In comparing the performance of Zuflak to other **panies, the ROIC calculation should: ()A. Exclude goodwill.B. Exclude depreciation.C. Not revalue fixed assets.D. Exclude net operating profit adjusted for taxes.15. With regard to Solak’s note concerning closed end-country funds: ()A. Statement 1 is correct, statement 2 is correct.B. Statement 1 is incorrect, statement 2 is incorrect.C. Statement 1 is correct, statement 2 is incorrect.D. Statement 1 is incorrect, statement 2 is correct.Explanations of terms16. Real interest rate17. Window instruction18. Special drawing rights19. Money market mutual funds20. Putable bonds21. Please list some Capital Market Instruments.22. What kind of Economic Policy in an Open Economy23. What is the Modern Quantity Theory of Money Demand?24. If you are a policy maker, what are your Ultimate Targets of Monetary Policy?。
2015年6月ACCA考试F2 mock questions考题
F2Management AccountingMock Exam(2015)Part A:ALL35questions are compulsory and MUST be attempted1A company operates a job costing system.Job001requires$60of direct materials,$40of direct labor and$20of direct expenses.Direct labor is paid$8per hour.Production overheads are absorbed at a rate of$16per direct labor hour and non-production overheads are absorbed at a rate of60%of prime costWhat is the total cost of Job001?A$240B$260C$272D$3202Which of the following statements,about establishing the trend of a time series,is/are TRUE?(1)Where the time series is approximately linear,the line of best fit can be estimated on ascatter graph(2)Where the time series is not approximately linear,moving averages can be calculated.A1onlyB2onlyC Both1and2D Neither1nor23It has been estimated that each service cost center does work for the other cost centers in the following proportions:Production Production Service Service1212 Overhead$90,000$85,000$40,000$30,000 Percentage of S130%40%30% Percentage of S240%50%10%1.The business uses the direct method of apportionment.After the reapportionment ofservice to production departments,the total overhead for P1is$_________(to thenearest whole$)2.The business uses the step down method of apportionment.After the reapportionment ofservice to production departments,the total overhead for P1is$__________(to thenearest whole$)4.L operates a continuous process producing three products and one by-product.Output from the process for a month was as follows:Product selling price per unit units of output from process1$18100002$25200003$20200004(by-product)$23500Total joint costs were$277000.What was the unit cost valuation for product3using the sales revenue basis for allocating joint costs assuming that the revenue receivable from the by-product is deducted from the joint costs?A$4.7B$4.8C$5.0D$5.15A manufacturing firm planned to manufacture and sell100,000units of product during the year at a variable cost per unit of$4.00and a fixed cost per unit$2.00.The firm fell short of its goal and only manufactured80,000units at a total incurred cost of$515,000. The firm’s manufacturing variance wasA$85,000favorableB$35,000adverseC$5,000favorableD$5,000adverse6A company determines its order quantity for a component using EOQ model.What would be the effects on the EOQ and the total annual ordering cost of a decrease in the annual cost of holding one unit of the component in stock?EOQ Total annual ordering costA Lower No effectB Higher No effectC Lower HigherD Higher Lower7The following information is available regarding the fixed overhead costs and output of the two production departments of a firm.Department A BAllocated or apportioned fixed overhead$70,000$100,000Total cost of direct materials used$140,000$100,000Total productive labor hours5,00010,000A particular product has the following variable cost.$MaterialsDepartment A4kg@$3per kg12Department B2kg@$3per kg6LaborDepartment A1/2hour@$10per hour5Department B 1.5hour@$10per hour15Variable overheads1hour@$5per hour5_____43If fixed overheads are absorbed on the basis of departmental material cost,the fixed overhead cost per unit is:A$5.8B$12C$10D$218ABC plc is currently preparing its cash budget for the year to31December20x4.An extract from its sales budget for the same year shows the following sales values:$March60,000April70,000May55,000June65,00040%of its sales are expected to be for cash.Of its credit sales,70%are expected to pay in the month after sale and take a2%discount;27%are expected to pay in the second month after the sale,and the remaining3%are expected to be bad debts.The value of sales receipts to be shown in the cash budget for May20x4isA$60,532B$61,120C$66,532D$86,6209In a time series analysis,the addictive model is used to forecast sales and the following seasonal variation apply:Quarter1234SV170130-230?The actual sales for the first two quarters of20x5were:Quarter1:$900Quarter2:$670What is the seasonal variation for the fourth quarter?A200B250C-150D-70The trend line for sales between Quarter1and Quarter2is___________(increased or decreased).10A company uses the WA method of inventory valuation which makes a product in two processes.The following data is available for process1in the last period.Opening work in process of1,000units was valued as follows:Material$12,000;Labor$6,000;Overhead$7,450Unit added and costs incurred during the period:Material$30,000(2,500units);Labor$16,750;Overhead$7,450The completion degrees of closing wip of500units:Material100%;Labor60%;Overhead40%1How many equivalent units are used when calculating the cost per unit in relation to labor? _________EUS2The value of the units transferred to process2was(to nearest$)$_____________11A company produces and sells a single product whose variable cost is$6per unit. Fixed costs have been absorbed over the normal level of activity of200,000units and have been calculated as$2per unit.The current selling price is$10per unit.How much profit is made under marginal costing if the company sells250,000units?A$500,000B$600,000C$900,000D$1,000,00012A company can make1,000units of a product for$12material per unit and2hours per unit for labor.The product sells for$22per unit.Employees are paid at$15per hour and are currently employed on the production of another product that takes3 hours of labor in which generates a contribution of$12/unit.Extra employees cannot be recruited and would have been transferred from current work.What is the total relevant cost if the company proceed with the new product?A-28,000B-13,000C-32,000D-20,00013The budgeted contribution for H Co for Jun was$290,000.The following variances occurred during the month.Fixed O/H expenditure variance6,475FTotal direct labor variance11,323FTotal variable overhead variance21,655ASelling price variance21,875FFixed overhead volume12,500ASales volume variance36,250ATotal direct materials variance6,335AWhat was the actual contribution for the month?A252,923B258,948C321,052D327,07714A company uses an overhead absorption rate of$3·50per machine hour,based on 32,000budgeted machine hours for the period.During the same period the actual total overhead expenditure amounted to$108,875and30,000machine hours were recorded on actual production.By how much was the total overhead under or over absorbed for the period?A Under absorbed by$3,875B Under absorbed by$7,000C Over absorbed by$3,875D Over absorbed by$7,00015In a transport business,unit costs are calculated per tonne/kilometer.The following data is available:Average load(tonnes)Average distance(kilometers)Number of journeys 44010560126658Total costs were$34,295.What was the cost per tonne/kilometer(to two decimal places of$)?A$0.46B$1.34C$4.12D$13.8616A company has a capital employed of$200,000.It has a cost of capital of12%per year.Its residual income is$36,000.What is the company’s return on investment?A30%B12%C18%D22%17What is Fisher’s ideal index?Laspeyre index150Corresponding Paasche index138.24A12.00B16.98C144.00D288.2418The following information is available for H co for the month of JuneBudgeted Hours2,750standard hoursStandard hours produced2,812standard hoursActual hours worked3,000Calculate the efficiency ratio:A94%B102%C107%D109%19Two products G and H are created from a joint process.G can be sold immediately after split-off.H requires further processing into product HH before it is in a saleable condition. There are no opening inventories and no work in progress of products G,H or HH.The following data are available for last period:$Total joint production costs350,000Further processing costs of product H66,000Product Production Closingunits inventoryG420,00020,000HH330,00030,000Using the physical unit method for apportioning joint production costs,what was the cost value of the closing inventory of product HH for last period?A$16,640B$18,625C$20,000D$21,60020A company operates a process costing system using the FIFO system of valuation. No losses occur in the process.The following data relate to last month:UnitsOpening wip200with total value of$1,530Input to the process1,000Completed production1,040Last month the cost per equivalent unit of production was$20and the degree of completion of the wip was40%throughout the month.What was the value(at cost)of last month’s closing work in progress?A$1224B$1280C$1836D$192021There is a normal loss of5%of the material input into a chemical process. During a given period,a company needs to produce840kg of W.And the company did produce840kg of W,although there was an abnormal loss of3%of material input into the process.The input should be____________kg of material during the month(to the nearest kg).22.A company manufactures a single product.Unit cost are:$/UnitVariable product14.75Fixed production8.10Variable selling 2.40Fixed selling 5.35400,000units of the product were manufactured in a period,during which394,000 units were sold.There was no inventory of the product at the beginning of the period.Using marginal costing,what is the total value of the finished goods inventory at the end of the period:___________(to the nearest$)Using absorption costing,what is the total value of the finished goods inventory at the end of the period:_____________(to the nearest$)23The following data relates to a wage index for a company:Year Wages per week Index01$27511706$315157What were the06weekly wages at01prices(to the nearest$)?A$201B$235C$275D$36924What document shows the amount due to a supplier for goods bought?A Purchase invoiceB Purchase requisitionC Goods received noteD Purchase order25.A company has following information in a record;Cost Output4,0001,0007,0002,00010,0003,0009,5004,000A step up in fixed costs of$500occurs at an output level of3,500unitsWhat would be the variable overhead cost per unit using high low method?A1.67B1.83C2.75D3.0026.A company uses standard absorption costing to value inventory.Its fixed overhead absorption rate is$12per labour hour and each unit of production should take four labour hours.In a recent period when there was no opening inventory of finished goods,20,000units were produced using100,000labour hours.18,000units were sold.The actual profit was$464,000.What profit would have been earned under a standard marginal costing system? A$368,000B$440,000C$344,000D$560,00027.Which two items in the following list relate to the term‘by product’?(1)Has low sales value relative to joint products(2)Accounted for by crediting the NRV(net realizable)value to work in progressaccount(3)Equivalent units of output are less than the actual good units of output(4)Charged with a share of joint production costsA1&2B1&3C2&4D3&428.The NPV of an investment at12%is$25,000and at20%is-$7,000.What is the IRR?A6%B12%C15%D18%29.A project has an initial investment of$60,000.The present value of the expected net cash inflows from the machine over its useful life are:Discounted rate Present value of cash flow10%$64,60015%$58,20020%$52,100What is the IRR of this investment?A Below10%B Between10%and15%C Between15%and20%D Over20%30.How much should be invested now(to the nearest$)to receive$24,000per annum in perpetuity if the annual rate of interest is5%A$210440B$18720C$22000D$48000031.An investor has the choice between two investments.Investment Easy offers interest of4%per year compounded semi-annually for a period of three years. Investment Difficult offers one interest payment of20%at the end of its four-year life.What is the annual effective interest rate offered by the two investments?Easy DifficultA 4.00% 4.66%B 4.00% 5.00%C 4.04% 4.66%D 4.04% 5.00%32.Tom Ltd’s material price variance for the month of Jan was$1,000F and usage variance was$200FThe standard material usage per unit is3kg,and the standard material price is$2 per kg.500units were produced in the period.Opening stocks of raw materials were100kg and closing stock300kg.Material purchases in the period were:A1200kg B1400kg C1600kg D1800kg33.An education authority is considering the implementation of a CCTV security system in one of its schools.Details of the proposed project are as follows:Life of project5yearsInitial cost$75000Annual savings:$30,000for5year with immediately effectDiscounted Rate:15%Calculate NPV of this project:$___________34.A company is considering an investment of$400000in new machinery.The machinery is expected to yield incremental profits over the next five years as follows:Year Profits($)11750002225000334000041650005125000Thereafter,no incremental profits are expected and the machinery will be sold.It is company policy to depreciate machinery on a straight line basis over the life of the asset.The machinery is expected to have a value of$50000at the end of year5Calculate the payback period of the investment in this machinery to the nearest0.1 year.A0.9year B1.3years C1.5years D1.9years35.What is the name given to a code in which the level of detail increase in a logical way as you work through the code?A sequenceB HierarchicalC FacetedD BlockPart B:All Three Questions to be attempt:1.Luca Co uses a standard marginal costing system to control its costs and revenues. The following variances have been calculated for one of its products for May2013. Variance Favorable Adverse$$Sales volume contribution3,950Sales price4,500Direct material price270Direct material usage180Direct labour rate1,100Direct labour effi ciency200Variable overhead expenditure750Variable overhead effi ciency600Fixed overhead expenditure1,350––––––––––––6,9505,950––––––––––––The following information is also available for May2013.Budgeted sales and production500units Budgeted profit$14,500Budgeted fixed costs$25,000Required:(a)Using the above information prepare a marginal costing based profit reconciliationstatement for May2013.(i)Budgeted contribution;$____________(1mark) (ii)Standard contribution for actual sales volume;$______________(1mark) (iii)Actual contribution;$______________(1mark) (iv)Actual fixed costs;$______________(2mark) (v)Actual profit.$_______________(1mark)(b)Which factors should not be considered in deciding whether or not to investigate avariance?（2mark）A Possible interdependence of variancesB The inherent variability of the cost or revenueC Top management’s delegationD Reliability of the figures(c)Which of the following would help to explain a favorable direct labor rate variance?(2mark)(1)Employees were of a lower grade than standard(2)The standard hourly rate pay day was set unrealistically high(3)A pay increase which had been anticipated in the budget was not awardedA All of themB(1)and(2)C(2)and(3)D(1)and(3)2.Cab Co owns and runs350taxis and had sales of$10million in the last year.Cab Co is considering introducing a new computerised taxi tracking system.The expected costs and benefits of the new computerised tracking system are as follows: (i)The system would cost$2,100,000to implement.(ii)Depreciation would be provided at$420,000per annum.(iii)$75,000has already been spent on staff training in order to evaluate the potential of the new system.Further training costs of$425,000would be required in the first year if the new system is implemented.(iv)Sales are expected to rise to$11million in Year1if the new system is implemented, thereafter increasing by5%per annum.If the new system is not implemented,sales would be expected to increase by$200,000per annum.(v)Despite increased sales,savings in vehicle running costs are expected as a result of the new system.These are estimated at1%of total sales.(vi)Six new members of staff would be recruited to manage the new system at a total cost of $120,000per annum.(vii)Cab Co would have to take out a maintenance contract for the new system at a cost of $75,000per annum for five years.(viii)Interest on money borrowed to finance the project would cost$150,000per annum. (ix)Cab Co’s cost of capital is10%per annum.Required:(a)State whether each of the following items are relevant or irrelevant cashflows for a net present value(NPV)evaluation of whether to introduce the computerised tracking system.(i)Computerised tracking system investment of$2,100,000;(ii)Depreciation of$420,000in each of the five years;(iii)Staff training costs of$425,000;(iv)New staff total salary of$120,000per annum;(v)Staff training costs of$75,000;(vi)Interest cost of$150,000per annum.Note:The following mark allocation is provided as guidance for this requirement:(i)0·5marks(ii)1mark(iii)0·5marks(iv)1mark(v)1mark(vi)1mark(5marks)(b)Calculate the following values if the computerised tracking system is implemented.(i)Incremental sales in Year1;(ii)Savings in vehicle running costs in Year1;(iii)Present value of the maintenance costs over the life of the contract.Note:The following mark allocation is provided as guidance for this requirement:(i)1mark(ii)0·5marks(iii)1·5marks(3marks)(c)Cab Co wishes to maximise the wealth of its shareholders.It has correctly calculated the following measures forthe proposed computerised tracking system project:–The internal rate of return(IRR)is14%,–The return on average capital employed(ROCE)is20%and–The payback period is four years.Required:Which of the following is true?A The project is worthwhile because the IRR is a positive valueB The project is worthwhile because the IRR is greater than the cost of capitalC The project is not worthwhile because the IRR is less than the ROCED The project is not worthwhile because the payback is less than five years(2marks)(10marks)3.The directors of Donny Co are reviewing the performance of two of its divisions.The following information is available for the year ending31March2013.South division North division$000$000Sales50,0003,200 Operating profit700840Capital employed3,5004,000South division is a food retailer that sells low priced food from a number of stores that are rented on short-term contracts.North division sells luxury motor vehicles,which it manufactures in a fully automated production plant.Required:(a)Calculate the following performance measures for the two divisions:(i)Return on capital employed;(ii)Return on sales;(iii)Asset turnover(based upon capital employed);(iv)Residual income(using an imputed interest charge of12%per annum).(5marks) (b)Donny Co is seeking to be successful and outperform its competition by identifying a series critical success factors(CSFs)and Key performance indicators (KPIs).Please mark the following either CSF or KPI:CSF KPIStaff turnover(1)(2)Internal learning(1)(2) Technology leadership(1)(2)New products(1)(2)After-sales process(1)(2)ROI(1)(2)Quality(1)(2)Delivery Lead time(1)(2)Price(1)(2) Employees(1)(2)(5marks)Present Value TablePresent value of1i.e.(1+r)–nWhere r=discount raten=number of periods until paymentAnnuity TableWhere r=discount raten=number of periods。
acca p3_2012_12月答案
Professional Level – Essentials Module, Paper P3Business Analysis December 2012 Answers 1(a)Power of the Sun (POTS) CoThe growth of the EA Group (EA) was largely made possible by the profits produced by POTS Co in the decade 1995–2005.It provided the funding for such acquisitions as ENCOS and Neach Glass. Since 2005, the company has become steadily less profitable. Gross profit has fallen in each of the last four reported periods (from 25% to 21%). Net profit has fallen in line (from 11·04% to 7·00%) and is now less than half that of the company’s heyday. Market growth has slowed considerably as alternative forms of energy have become available. However, POTS market share remains high as many of its competitors have either ceased business or scaled down their operations. In the last two years, when the market has grown by only 0·5%, the company has increased its market share from 25% to 30%. In Boston Box terms, POTS is probably a cash cow, with its high market share and presence meaning that it should be able to maintain unit costs below that of it competitors. However, there is concern within the Group that the company is being neglected and this is being reflected in its profitability. The best managers have been taken out of the company to work in new acquisitions and this has had a demoralising effect within the company. There is also evidence that the brand has grown tired and is not well recognised or respected. This is probably one of the problems with the cash cow. How can managers in the company be motivated when they see their hard-earned profits invested elsewhere in the Group? If EA is still committed to solar energy as an important energy source, then it would probably be beneficial for it to revisit the brand, review its operation and publically reaffirm its commitment to it.Neach GlassNeach Glass was an important supplier of POTS Co in the latter’s formative years. The managing director, Kevin Neach, became a close personal friend of Ken Nyg, the managing director of POTS (and later the CEO of EA Group). When Neach was on the brink of going into administration it was purchased by EA to preserve the supply of high quality glass. It also allowed Ken Nyg to help out a personal friend. However, in the past five years substantial financial investment and the transfer of some of POTS’ best managers have failed to improve performance. Although market share has increased in the last four years (from 7% to 9%), Neach remains a relatively small player in a declining market (reduced by 2% in the last year). Gross and net profit margins are improving (gross profit from 16·98% to 18·26%; net profit from 7·14% to 9·07%) but, in terms of performance within the Group, they remain stubbornly low. Despite using some of the Group’s best managers, net profit has risen less than 2% since acquisition. In Boston Box terms the company is probably a dog. It seems to have inherent problems which the EA Group cannot solve. It was understandable that EA bought the company to preserve the supply line.But, in retrospect, this should have been a short-term response whilst POTS found a new supplier and the company should have then been sold. There are no obvious similarities between energy management and glass manufacture. Divesting this company from the portfolio remains the most appropriate response.ENCOSAcquiring ENCOS appeared to make sense. It was clear that other renewable alternatives to solar energy were becoming more common and that a more rounded approach to alternative energy management was required. ENCOS had expertise in energy control systems, but had little marketing expertise and lacked contacts with the large public sector organisations that were seeking to install such systems. EA could bring this knowledge to the company, together with more experienced managers and a higher profile. The acquisition appears to have been successful. It has an increasing market share (19% to 25·93%) in a growing market (15·71% growth in the four years under consideration). Furthermore, the growth of the company is outstripping the growth of the market. Gross and net profit margins are both growing (net profit margin up from 12·41% to 15·95% in the four years under consideration, gross profit up from 19·17% to 23·81%). In absolute terms, these returns are the highest of the companies considered here and net profitability continues to grow disproportionately, suggesting that operating costs appear to be falling. In Boston Box terms the company is a potential star, although further information would be required to confirm this. It has clear synergy with POTS and EA appear to have brought significant competencies to bear.It could be argued that it is performing much better under EA’s guidance than it would have as an independent company.Steeltown Information TechnologyIf the industry Steeltown Information T echnology is competing in is defined as ’public sector technology’, then it seems reasonable to suggest that the potential market growth is relatively high. The present government is committed to privatising non-core services, so it can be expected that many councils will follow the example of Steeltown City Council and outsource information technology. It could be argued that Steeltown Information T echnology enjoys a very high market share in this new sector, so again potentially qualifying (in Boston Box terms) as a star. No conventional financial figures are available and although the cost plus contract agreed with the council does mean that profits will be reported for, at least, the last five years, these will be relatively modest. The real question with this acquisition is whether it makes sense. EA does have experience of gaining contracts within the public sector, but in energy and control technology, not information technology and systems.It has no experience of acquiring a public sector organisation and creating the degree of change required to move its culture to a profit-driven private sector company. Overall, EA is trying to broaden its product base, and the acquisition of Steeltown Information T echnology is its vehicle for pursuing this strategy. Acquisition is an acknowledged way of entering a new market, but usually the acquired company is established in that market, which is not the case with the newly formed Steeltown Information T echnology. Whether the perceived synergies with ENCOS will emerge is debateable. The two companies work in different markets. ENCOS is focused on technical control systems in the energy sector. In comparison, Steeltown Information T echnology develops commercial information processing systems in a public sector environment. The drivers are quite different. ENCOS is focused on complex mathematical algorithms with little user intervention. Steeltown Information T echnology deals with developing systems for end users who have difficulty in both defining and implementing the systems they commission.(b)The issues explored in this question are four of the eight contextual factors, identified by Balogun and Hope-Hailey, whichsignificantly influence strategic change.Time refers to the amount of time available for EA to implement the changes at Steeltown Information T echnology. In some circumstances, time is a very critical factor, because the perilous financial nature of the organisation requires action to be taken quickly to arrest a decline in turnover or profitability, or indeed just to ensure its short-term financial viability. This was the situation at Neach Glass when it was acquired by EA. However, at Steeltown Information T echnology the ten year contract with the city council, only reviewed after five years, means that there is no obvious need for the speedy implementation of change. Sufficient profitability is guaranteed for the next five years to maintain present levels of resources at Steeltown Information T echnology and this, potentially, gives EA a long elapsed period to implement the changes that they envisage.The Scope of change can be considered as either largely realignment, or largely transformational. Realignment can usually be accommodated within the current culture of the organisation, whilst transformational change requires a significant cultural shift. It seems reasonable to suggest that the change at Steeltown Information T echnology will be transformational. Current work is inwardly focused, budget rather than profit-driven, run by managers with little experience of the private sector. There will have to be a fundamental change in the core assumptions of the organisation. Fortunately, there is no need to quickly implement these changes and so an incremental approach to change can be adopted. In the Balogun and Hope Hailey model (adapted by Johnson, Scholes and Whittington) this suggests an evolutionary approach to change, where paradigm change is required, but over a relatively long time period.Capability refers to what experience there is of managing change in the organisation. Does the organisation have managers who have successively managed change in the past? Is the workforce used to change and have they readily accepted changes in their work practices? In the context of Steeltown Information T echnology, evidence suggests that employees have little experience of change. In fact, established work practices written into trade union agreements have tended to restrict change and this is one of the reasons why the city council decided that they wanted to separate off the information technology department. Employees have been very concerned and anxious throughout the whole process of outsourcing, from the initial decision, through tender evaluation, to agreeing the sale of the organisation to EA. On the other hand, EA does have experience of implementing change in the organisations that they have acquired. This is probably one of the competencies it perceives that it is bringing to Steeltown Information T echnology. However, it has to be recognised that this capability has not appeared to be successful at Neach Glass and so some concern might be expressed about the validity of such a claim.Readiness for change concerns the organisation’s attitude towards change. Is it likely to embrace it or is there widespread opposition to change within the organisation or, indeed, do significant pockets of resistance exist? There is little doubt that, initially, there is evidence that there was considerable opposition to change. However, once the proposal was agreed and the sale made to EA, there appears to have been a greater acceptance of the need for change. Perhaps it is best illustrated by the manager who stated that ‘he was against outsourcing in principle, but now the sale has been agreed, let’s get on with it’. The resignation of the IT director and his deputy has removed a significant pocket of resistance to change and it should make EA’s task easier.(c)Benchmarking is an attempt to assess the relative performance of an organisation. It is understandable that EA wants tobenchmark Steeltown Information T echnology. Although the contract with the city council is guaranteed for at least the first five years, it is important for EA to understand the performance of the organisation it has bought and the opportunity for driving out improvements and, hence, profitability.There has been a tendency for organisations to increasingly attempt to benchmark themselves against the industry or sector they compete in, rather than against their historical performance. However, such historical benchmarking was traditionally used when Steeltown Information T echnology was part of the City Council. Examples given in the scenario are the reliability of software as measured by reported faults and the satisfaction of users as measured by internally developed and analysed questionnaires. This evidence suggests that the software produced by the organisation is becoming more reliable. However, this may reflect the fact that fewer new systems were developed in the past two years as the council arranged for the technology department’s transition to the private sector. Established software tends to have fewer faults than recently released software. Furthermore, the measure is an absolute one, not a relative one. The apparent improvements in user satisfaction may also reflect the hiatus associated with the transition from public to private sector. Furthermore, the overall figures do not seem very high even though the questions were set, collected and analysed by the technology department. In general, externally measured satisfaction surveys are to be preferred.Benchmarking against competitors is problematic in the context of Steeltown Information T echnology because of choosing what sector to compare it with. It is possible to make comparisons, using published government statistics, with other public sector organisations and indeed it seems to compare relatively well, reporting greater user satisfaction and software reliability.However, again these figures have to be treated with care. Did the user satisfaction surveys in the other councils use the same assessment criteria? Now that it has been privatised, the uniqueness of the Steeltown Information T echnology experiment makes it almost impossible to find IT companies providing exclusive services to a public sector client against which it might be benchmarked. EA has suggested benchmarking it against the performance of ENCOS. However, the technology it provides and the nature of the client it serves make such comparisons very tenuous. The focus of development has been quite different.ENCOS reports on profit per contract, but Steeltown Information T echnology currently only has one contract and is unlikely to have any relevant data, as profitability was not an objective of the organisation. In any case, a major concern with such industry comparisons is that the whole industry might be performing badly and, in some circumstances, losing out to industries or technologies that can satisfy customers’ needs in a different way. For example, poor performing companies providing bespoke software solutions may lose out to an organisation providing a standard off-the-shelf software package solution.The shortcomings of industry norm comparisons have encouraged organisations to seek best practice wherever it can be found. Johnson, Scholes and Whittington comment that ‘the real power of this approach is ... shaking managers out of the mindset that improvements in performance will be gradual as a result of incremental changes in resources or competencies’.They give an example of a police force studying a call centre as a way of improving their response to emergency telephone calls. However, software development is quite specific and it will be difficult to think of any appropriate, innovative comparisons.Finally, benchmarking has been criticised on a number of accounts. Firstly, it can lead to a situation where you get what you measure, which may not have been the intended strategic outcome. If the strategy is flawed, then the benchmarking will encourage the organisation to continue, perhaps even accelerate, in the wrong direction. For example, a focus on measuring the certification of staff is only valid if there is a proven causal link between certification and software quality.Secondly, since benchmarking compares inputs, outputs or outcomes, it does not, itself, identify the reasons for good or poor performance. The benchmark does not directly compare competencies. As mentioned earlier, improvements may be due to external environmental factors, not directly linked to what the organisation is striving to achieve.Although benchmarking seems superficially attractive, it appears quite difficult to use effectively at Steeltown Information T echnology. EA might be better focused, in the short term, on successfully implementing change and improving employee motivation and processes rather than trying to establish and measure sensible benchmarks.2(a)Many issues will need to be considered in the formulation of a strategy for the estate. However, in the context of the scenario, special attention will have to be paid to the expectations of stakeholders, to external environmental factors beyond the control of the estate and to the strategic capabilities of the estate itself. These are now considered in turn.Expectations of stakeholdersAny proposed strategy will have to take into account the expectations of many stakeholders, some of which have conflicting objectives. From an internal perspective, the strategy has to take into account the objectives of volunteers who make up 90% of the workforce. Any strategy that alienates volunteers may leave the charity unable to maintain the estate or meet its basic operational obligations. Volunteers have different objectives to a paid workforce and these needs have to be understood.Replacing volunteers is not as straightforward as replacing a paid workforce, where scarce labour can be attracted through improved pay and conditions.Most organisations have relatively straightforward relationships with their customers. Providing a service or product to one customer rarely conflicts with offering a service or product to another. Where it does conflict, for example in providing audit and consultancy services, a supplier can usually elect not to supply the customer, who then looks elsewhere for a similar service. In the case of Moor Farm, potential customers do conflict. There are documented examples of cyclists clashing with walkers and dog walkers with farmers. Access to the land is free (a stipulation of the charitable bequest) and so it is difficult to exclude potential customers. Consequently, a strategy has to be developed that is sensitive to the conflicting needs of customers, within the constraints of the charitable bequest.Finally, the Moor Farm estate also surrounds two villages where private homeowners are angry about the increasing number of visitors to certain parts of the estate. Attractions have been created, causing traffic problems. As well as having a moral responsibility to these homeowners, the estate also depends, to some extent, on rental income from some of the houses in these villages. Again, residents need to be considered in the definition of the estate’s strategy.External environmental issuesThe estate needs to continually scan the external environment to identify issues that might affect its situation. Strategy may have to be developed to either exploit or reflect these external changes, most of which are outside the control of the estate.At best, it can only lobby those responsible for creating these influences.In the scenario, mention is made of a changed political landscape where government funding is to be reduced on initiatives such as tree planting, protected pasture land and rural employment. This will affect the income of the estate. Changes in weather patterns are also causing problems for the mansion that is situated in the estate. Built originally to resist cold dry weather typical of the time, it has proved susceptible to the warmer, wetter winters now experienced in this part of the country.This is causing long-term maintenance issues as the fabric of the mansion deteriorates.Finally, the population of the country is increasingly vocal about the ‘rights’ of individuals. The survey suggests that individuals believe that they have a ‘right to roam’ on private land, even when this violates the ‘rights’ of others, such as farmers and other land users. The estate has to take into account this social trend and potential stakeholder conflicts in its planned strategy.Strategic capabilityFinally, the strategy has to take into account the internal resources and competencies of the estate. The estate has significant tangible resources, such as land and property. It also has a unique resource, the only landscape garden developed by James Kent in the district. This is a unique resource which the strategy should aim to exploit. There are also other internal capabilities that should be recognised. A happy, motivated volunteer workforce must be properly utilised by any strategic change, not alienated. Amongst these are volunteers with exceptional skills in land management which could be used to exploit other opportunities on similar estates in the country. Leadership style also needs to be considered. The previous manager was well-liked and successful. Any sudden change in style may cause disruption and a fall in morale. The new leader has to besensitive to her predecessor’s leadership style, whilst building on the success of the previous leader by improving the visitor experience.The estate has valuable and, in some cases, unique resources, which it needs to exploit with a varied set of stakeholders who sometimes come into conflict with each other. A stakeholder analysis, leading to appropriate stakeholder management policies, seems key here, and may provide some insights into how the website might be improved (part (b) of this question).One of these stakeholders, the government, needs to be particularly monitored, as their policies threaten the funding of the trust.(b)There is little point in having a well-designed website if it is difficult to find. The role of search engines is significant here.Moor Farm needs to be near the top of the search engine listings for search terms that are directly relevant. The estate needs to discuss what these terms might be. ‘Moor Farm’ is an obvious one, but searches such as ‘walking in rural Cornaille’ may bring in visitors who are not aware of the estate’s existence. There is conflicting advice on how to structure a website to achieve a high position in a search engine listing. One fool-proof way is to buy sponsored links which are shown as such at the top of the displayed page. Some commercial organisations are dubious about the value of such links, but they seem completely appropriate in the context of a charitable estate.Although the website is well regarded and well presented, it does not appear to have weather feeds that would avoid people coming on days when the weather was so poor that it might be dangerous, or, as in the quote, when it might spoil a family’s enjoyment. The website may have a weather forecast, a feed on current conditions, and perhaps webcams showing the actual weather at a number of agreed locations. Of course, these feeds and webcams will also show good weather conditions as well, perhaps enticing people to the estate who were prevaricating about their visit.The website currently shows information about events, but it does not allow customers to book these events. The interactivity of the site has to be improved, allowing customers to book and pay in advance, so that they can be sure that they will be able to attend the event and avoid the disappointment of the family who travelled 100 km only to find the event fully booked.Such a facility also has advantages for the estate. For example, it has some feel about the popularity of the event before it is run, so that the scale of the event can be altered to reflect the likely demand. Furthermore, payment is received in advance, thus improving cash flow.Feedback from satisfied customers can be an important factor in attracting new customers. At present the site does not appear to allow visitors to post comments, photographs and recommendations. This means that an effective marketing tool, unsolicited recommendations, do not appear on the site. Comment has also been made about the enthusiasm and knowledge of the volunteers. This could be harnessed on the site by asking volunteers to write blogs, explaining what they are doing and what is going on. This could be linked through to T witter and other social networking sites.Finally, there is obviously a group of regular visitors to Moor Farm who wish to become more involved. As the quotation suggests ‘we really want to know what is going on!’. The website can be used to develop a community that supports and promotes the estate. This could be achieved by asking users to register with their email address. They will then receive newsletters, special offers and information about forthcoming events. Special events can be offered to this community and part of the website can be set aside for members of this community. Not only will this provide the estate with valuable resource, it will also allow them to build up a marketing profile of likely visitors and, through surveys and questionnaires, continue to understand what different types of visitor want from the estate.3(a)Johnson and Scholes have identified franchising as a form of strategic alliance in their classification of methods of strategy development. In this approach, franchises are independently run businesses that would enter into a licence agreement with Graffoff to purchase training, equipment and materials in return for an exclusive geographical franchise area. The proposal is that the franchisee would buy or lease appropriate premises, not Graffoff as in Emile’s organic expansion plan. Most franchises are required to make a large up-front payment, which would provide Emile with significant funds for investment or, indeed, for further dividend payments. There are also a number of avoided costs as franchisees usually pay for all the operating costs of the franchise.Running their own business is usually sufficient to motivate the franchise owners and the motivation of any staff they employ is also their responsibility. Emile has already acknowledged that he is not a people person and so franchising neatly sub-contracts this issue. Thus, Emile could continue running Graffoff more or less as it is currently and he would avoid the problem of raising significant finance and managing a difficult period of expansion.However, it is possible (but not inevitable) that the long-term returns to Graffoff might be lower than through directly owned or leased depots. Franchisees will take most of the profits and Graffoff will be dependent for income from materials supply and, usually, from a relatively small percentage of the franchise’s annual sales specified in the licence contract. There are also important issues to consider in the appropriate selection and control of franchises. Although the initial fee will be received by Graffoff irrespective of the franchise’s success, continuing income (and brand awareness) is dependent upon the success of the franchise. Graffoff has no experience in selecting appropriate franchisees, neither is there any evidence that it has systems in place to control quality and audit performance. These would be needed to ensure that the product is being used correctly and that the correct percentage of sales is being paid to Graffoff. Such systems will need investment and development and need to be in place before the franchise scheme is launched.Furthermore, the success of franchises is often determined by the visibility of the brand. Emile himself recognises that Graffoff has a very low profile and he acknowledges that he has very little expertise in this area. Also, it would be obvious to potential franchisees that it may be difficult to maintain sales volumes once the patent has expired. Thus, there may be problems inattracting franchisees, particularly those willing to invest a significant amount for a product which, they may consider, has a relatively short lifetime and whose brand awareness is low. Emile could address the first of these issues by employing marketing expertise and launching vigorous campaigns. He might also address the patent issue by looking at improving the product. Thus focusing on product development (what he is good at) and not business expansion, where he has little experience and interest.Although franchising appears to reduce financial risk, it is unlikely to produce the financial returns as quickly as the internal growth option. Emile must not underestimate the time taken to draw up the licence agreement, develop systems to support the franchise and recruit and appoint franchisees. He must also accept that some franchises are likely to fail and that returns will be low in the early years of operation as the fledgling franchises seek to establish themselves as viable independent companies.(b)Tutorial note:There are a range of strategic alliances that the candidate might consider. Two are explicitly evaluated in themodel answer. However, appropriate alternatives will be given credit.Strategic alliances take place where two or more organisations share resources and activities to pursue a strategy. Many organisations recognise that they need to acquire materials, skills, innovation, finance or access to markets, and increasingly recognise that these may be more readily obtained through cooperation rather than ownership. The franchising option is a type of alliance, and Emile sees it as a way of funding his expansion without incurring employee motivational and management issues that he is not confident in addressing.In terms of Graffoff, the motivation for an alliance is likely to be co-specialisation, where each partner concentrates on activities that best match their capabilities. Graffoff specialises in product design and product development. Its weaknesses, in the context of the planned expansion, appear to lie in marketing, retail and finance. F ranchising has already been considered as a type of alliance. Another type of alliance that Emile might consider is a joint venture, where a new organisation is set up jointly owned by its parents. It is often used by companies to enter a new geographical market where one of the companies provides the expertise and the other local knowledge and labour. This is not the case here, where expansion is within the country. Furthermore, there is no obvious candidate for a joint venture and, even if a partner could be found, it would take time to establish a contractual relationship. Emile, as an entrepreneur, might also find it difficult to work within a framework of a joint venture where he would need to cede a certain amount of control.In a network arrangement, two or more organisations work in collaboration without a formal relationship. The Equipment Emporium already has 57 superstores in the country selling tools and machines. Emile rebuffed their initial advance offering to sell his product in the store, because of the need for mandatory product training. However, he might return to them and offer to set up small in-store outlets where his product could be demonstrated and its services sold. The Equipment Emporium would be paid a fee, but such an approach would, in essence, be the same as his organic growth plan but without the need for large scale capital investment. F urthermore, the locations already exist and are backed up by significant marketing expertise and high brand awareness. This kind of opportunistic alliance is a quick way of achieving the expansion that Emile requires and it draws on both partners’ expertise. There is a concern in such a loose arrangement that one partner might steal the other’s ideas or products, but that seems unlikely here. Graffoff is not interested in becoming a general machine superstore and The Equipment Emporium is primarily focused on products not services. From Emile’s perspective, this opportunistic alliance provides a potential way of piloting his proposed organic growth expansion strategy before moving into dedicated premises or, indeed, offering the outlets to franchisees.(c)The consultant has suggested to Emile, that the company has internal sources of finance it can exploit to fully meet its requiredfunding for organic growth. Typical sources of internal finance are retained profits, tighter credit control, reduced inventory and delayed payment to creditors. Given that Emile is committed to high dividend payments and that no information is given about inventory, two of these are relevant here.Tightening up credit control makes it possible to release money for funding. The average settlement period for receivables can be calculated as (trade receivables/sales revenue) x 365. For the second year trading this is (260/1,600) x 365 = 59 (59·31) days. Thus, customers take, on average, 59 days to pay their debts, despite agreeing to a 30 day payment term.Reducing this to the agreed 30 days would realise about $128,500, which could be used to invest in the business. Reducing it to 40 days (the sector-wide standard) would realise approximately $84,500.However, these gains would only be achieved through implementing better procedures in accounts receivable. Emile realises that this section is poorly motivated and under-staffed. Thus some of the proposed savings may be offset by increased staffing costs. He is also very sensitive to upsetting his customers and so the need to strictly adhere to payment terms may create initial difficulties and strain customer relations. He will have to refrain, in future, from intervening in the debt collection process, and not offer the generous terms of payment that currently undermine the debt collection efforts of the accounts receivable department.This approach might be allied to delaying payments to creditors. Given the limited information, a crude estimate of the average settlement period for payables (creditors) can be calculated by (trade payables/cost of sales) x 365. In this instance this is (75/1,375) x 365 = 20 (19·91) days. Thus Graffoff pays its creditors within 20 days, whilst 40 days is common in this sector. Bringing the company in line with this practice would realise up to a further $75,500 which again could be used for investment. There is no suggestion that this will cause a problem. The current fast payment of invoices seems to reflect the zeal of the administrator in accounts payable, rather than any policy of the company. If Graffoff elects to pay within 30 days (the normal credit terms for the country), this will still realise about $38,000.。
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––––––。
2010.Jun.ACCA.F2_saa_GE_mock_questions
ACCA F2Accounting ManagementMock testJun 2010Prepared by: Ben LeeWhich of the following is NOT correct?a) Management accounting provides appropriate information for decision-making, planning,control and performance evaluationb) Financial accounting information can be used for internal reporting purposesc) Cost accounting can be used for stock valuation to meet the requirements of internal reportingonly ( )1 marks Question 2Which department would normally be responsible for completing a standard purchase requisition for goods in a service organisation?a) The buying (purchasing) departmentb) The department that requires the goodsc) The goods inwards departmentd) The accounting department staff. ( )2 marks Question 3Which of the following would normally be carried out by higher level management?1 Day to day planning and control2 Defining the objectives of the business3 Making strategic decisionsa) 2 and 3b) 1, 2 and 3c) 1 and 32 ( )d) 1and2 marksA company has recorded its total cost for different levels of activity over the last five months as follows:Total($)(units)coastMonthActivitylevel7 300 17,5008 360 19,5009 400 20,50010 320 18,50011 280 17,000The equation for total cost is being calculated using regression analysis on the above data. The equation for total cost is of the general form ‘y = a + bx’ and the value of ‘b’ has been calculated correctly as $29.53.What is the value of ‘a’ (to the nearest $) in the total cost equation?a) 7,338b) 8,796c) 10,430d) 10,995( )2 marks Question 5Which of the following correlation coefficients indicates the weakest relationship between two variables?1.0a) +0.4b) +c) - 0.6( )2 marksConnie estimates the following probabilities of returns on an investment she has made depending on the behaviour of the economy,Estimated returnProbability %0.1013Boom8Normal 0.655Recession 0.25What is the expected return on Connie’s investment?a) 9.00%b) 8.67%c) 7.75%( )d) 8.00%2 marks Question 7There are 27,500 units of part number X35 on order with the suppliers and 16,250 units outstanding on existing customers’ orders.If the free inventory is 13,000 units, what is the physical inventory?a) 29,750b) 3,250c) 24,250( )d) 1,7502 marks Question 8Data relating to a particular stores item as follows:400usageunitsdailyAverageusage 520unitsdailyMaximum180unitsusageMinimumdailyLead time for replenishment of inventory 10 to 15 daysunitsquantity 8,000ReorderWhat is the reorder level (in units) which avoids stockouts (running out of i nventory)?a) 5,000b) 6,000c) 7,800d) 8,000( )2 marksAn organization’s stock records for last month show the following transactions in respect of one item:stockreceipts issuesDate(units)(units)(units)1st 3002005th 10080013th 60050020th 30028th 200300The opening stock was valued at a total cost of $9,300 and all receipts on the 13th were purchased at a cost of $33 per unit. The organization uses the weighted average method of valuation and calculates a new weighted average after each stores receipt. What was the total value of the closing stock?a) $9,500b) $9,700c) $9,990( )d) $9,7502 marks Question 10An employee is paid on a piecework basis. The basis of the piecework scheme is as follows:1 to 100 units - $0.20 per unit101 to 200 units - $0.30 per unit201 to 299 units - $0.40 per unitWith only the additional units qualifying for the higher rates. Rejected units do not qualify for payment. During a particular day the employee produced 210 units of which 17 were rejected as faulty. What did the employee earn for their day’s work?a) $47.90b) $54.00c) $57.90( )d) $63.002 marks Question 11A company operates a job costing system. Job number 605 requires $300 of direct materials and $400 of direct labour. Direct labour is paid at the rate of $8 per hour.Production overheads are absorbed at a rate of $26 per direct labour hour and non-production overheads are absorbed at a rate of 120% of prime cost.What is the total cost of job number 605?a) $2,000b) $2,400c) $2,840d) $4,400( )2 marksWhich of the following statements is correct?a) A stores ledger account will be updated from a goods received note onlyb) The term 'lead time' is best used to describe the time between receiving an order and paying foritc) Authorisation is required to make an issue from stores( )1 marks Question 13A company determines its order quantity for a raw material by using the Economic Order Quantity (EOQ) model.What would be the effects on the EOQ and the total annual holding cost of a decrease in the cost of ordering a batch of raw material?EOQ Total annual holding costa) Higher Lowerb) Higher Higherc) Lower Higher( ) d) LowerLower2 marks Question 14Which one of the following groups of workers would be classified as indirect labour?a) Machinists in an organisation manufacturing clothesb) Bricklayers in a house building companyc) Maintenance workers in a shoe factory( )1 marksBalcombe has recorded the following costs over the last six months:Month Total cost$'000Units produced'0001 7432 72.75 1.753 73.2524 75 2.55 69.5 1.56 72.752a) Total cost = 65,000 + 3 x Quantityb) Total cost = 71,000 + 1 x Quantityc) Total cost = 61,250 + 5.5 x Quantityd) Total cost = 70,250 + 1.25 x Quantity( )2 marks Question 16Hill Limited sells a single product. In the coming month, it is planned that this product will generate a total revenue of $300,000 with a total contribution of $125,000. Fixed costs are $100,000 per month. What is the margin of safety?a) 20%b) 30%c) 40% ( )1 marksWhich points are the most likely to give the optimal solution? a) A and B only b) B, D and E only c) D and E only d) A, B and C only ( ) 2 marksQuestion 18A production department absorbs overhead using a machine hour basis. Overhead allocated to thedepartment in a period are $39,630 with a further $51,570 re-apportioned from the service departments in the factory. 480,000units of product are manufactured at 60 units per machine hour.What is the overhead absorption rate in the production department?Ans :$ _ per machine hour 2 marksTaree Limited uses linear programming to establish the optimal production plan for the production of its two products, A and U, given that it has the objective of minimising costs. The following graph has been established bearing in mind the various constraints of the business. The dotted area indicates the feasible region.The budgeted production level was 30,000 units and 29,000 units were actually manufactured. between budgetedexpenditure and 29,000 units at $5 per unit2 marks Question 20What is the main purpose of an overhead absorption rate? a) To control overheads b) To charge overheads to products c) To share out common costs to cost centres that benefit from them ( ) 1 marksQuestion 21Which of the following best describes joint products? a) Two or more products output from the same process which have significant sales value butwhich are indistinguishable up to the point of separation b) Two or more products output from a process which require further processing before beingcompleted and available for salec) Two or more products output from a process recognised by a relatively low sales valuecompared to the main output produced( ) 1 marksBumblebee Limited absorbs fixed overhead costs on a unit basis. For the year just ended,Bumblebee's fixed overhead expenditure was budgeted at $150,000 but was actually $148,000. a) Fixed overheads were over-absorbed by $3,000, being partly the difference between budgetedand actual expenditure and partly the production shortfall of 1,000 units b) Fixed overheads were under-absorbed by $5,000, being the difference c) Fixed overheads were under-absorbed by $5,000, being the difference between budgeted andactual production at $5 per unit d) Fixed overheads were under-absorbed by $3,000, being partly the difference between budgetedand actual expenditure and partly the production shortfall of 1,000 units ( )Profit for a period using marginal costing is $25,100, finished goods stock are:unitsOpening 3020unitsClosing 2630What is the profit using absorption costing where the fixed production overheads are applied at $8 per unit?Ans :___$ _2 marks Question 23Which of the following is correct?a) When considering limiting factors the products should always be ranked according tocontribution per unit soldb) If there is only one scarce resource linear programming should be usedc) In linear programming the point furthest from the origin will always be the point of profitmaximizationd) The slope of the objective function depends on the contributions of the products( )2 marks Question 24Which of the following would be considered to be an investment centre?a) Management has a sales team.b) Management has a sales team and are given a credit control function.c) Managers can purchase capital assets and are given a credit control function.( )1 marks Question 25Flagston company uses a weighted-average process-costing system. Company records disclosed that the firm completed 100,000 units during the month and had 20,000 units in process at month-end, 25% complete. Conversion costs related to the beginning work-in-process inventory amounted to $105,000, and amounts incurred during the current month totaled $840,000. If conversion is incurred uniformly throughout manufacturing, Flagston’s equivalent-unit cost isa) $7.00b) $7.88c) $8.40d) $9.00( )2 marksWhich of the following is the proper sequence of events in an activity-based costing system?a) Identification of cost drivers, identification of cost pools, calculation of cost application rates,assignment of cost to products.b) Identification of cost pools, identification of cost drivers, calculation of cost application rates,assignment of cost to products.c) Assignment of cost to products, identification of cost pools, identification of cost drivers,calculation of cost application rates.( )1 marks Question 27Yang manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels foe each cost type are presented below.DC TypeTypeB TypeA Typeunits $4 $9 $4 $175,000units $4 $6 $3 $137,500Each of the cost types shown above is identified by behavior as:CB TypeTypeA TypeVariable Semi-variablea) FixedVariableSemi-variableb) FixedFixedc) Variable Semi-variabled) Variable FixedSemi-variable( )2 marksStone Limited uses an absorption costing system, and manufactures a single product, theHenge. Each unit of this product requires 12 labour hours to completeFor a particular accounting period, the normal level of activity was 30,000 units, although 34,500 units were produced. Fixed overheads are absorbed on a direct labour hour rate basis at a rate of $9 per direct labour hour.What was the under or over absorption of fixed overheads in the period?a) $40,500 under absorbedb) $40,500 over absorbedc) $486,000 over absorbedd) $54,000 over absorbed( )2 marks Question 29The following information relates to a process for last period.Materialunit $35equivalentcostperunit$22equivalentcostperConversion(Units5,000)inprogressClosingworkThere was no opening work in progress, and the closing work in progress was 50% complete. All material are introduced at the start of the process and conversion takes place evenly throughout the process. There were no losses.What was the value of the closing work in progress for last period?Ans :___$ ___2 marks Question 30The following information relates to a process for last period.Openingwork-in-progress:10,000UnitsConversion cost was 60% completedcompleted 28,000 UnitsClosing work in progress ( Units ) 8,000added $465,760costConversionThe closing work in progress was 80% complete as regards conversion costs, conversion takes place evenly throughout the process, and there were no losses.What was the conversion cost per unit for the period using FIFO method of valuation?Ans :___$ ___2 marksA factory consists of two production cost centres (P and Q) and two service cost centres (X and Y). The total allocated and apportioned overhead for each is as follows:P Q X Y$95,000 $82,000 $46,000 $30,000It has been estimated that each service cost centre does work for the other cost centres in the following proportions:P Q X YPercentage of service cost centre X to 40 40 - 20Percentage of service cost centre Y to 30 60 10 -After the reapportionment of service cost centre costs has been carried out using a method that fully recognises the reciprocal service arrangments in the factory, what is the total overhead for production cost centre P?a) $122,400b) $124,716c) $126,000d) $127,000 ( )2 marks Question 32A company manufactures two products, X and Y, in a factory divided into two production cost centres, Primary and Finishing. The following budgeted data are available:CostPrimary FinishingCentreAllocated and apportioned fixedcosts $96,000 $82,500OverheadDirect labour minutes per unit:X 36 25- productY 48 35- productBudgeted production is 6,000 units of product X and 7,500 units of product Y. Fixed overhead costs are to be absorbed on a direct labour hour basis.What is the budgeted fixed overhead cost per unit for product Y?a) $11b) $12c) $14( )d) $152 marksA company produces and sells a single product whose variable cost is $6 per unit.Fixed costs have been absorbed over the normal level of activity of 200,000 units and have been calculated as $2 per unit. The current selling price is $10 per unit.How much profit is made under marginal costing if the company sells 250,000 units?a) $500,000b) $600,000c) $900,000( )d) $1,000,0002 marks Question 34Clayton Corporation, which adds materials at the beginning of production , uses a weighted-average process-costing system. Consider the data that follow.Number of Units Cost of MaterialsBeginning work in process 30,000 $22,200May 80,000 72,400inStarted85,000completedProductionEnding work in process 25,000The company’s cost per equivalent unit for materials is:a) $0.86b) $0.90c) $1.10d) $1.18( )2 marks Question 35An organisation manufactures a single product which is sold for $60 per unit. The organization’s total monthly fixed costs are $54,000 and it has a contribution to sales ratio of 40%. This month it plans to manufacture and sell 4,000 units.What is the organisation’s margin of safety this month (in units)?a) 1,500b) 1,750c) 2,250( )d) 2,5002 marksA company manufactures and sells a single product. The following data relate to a weekly output of 2,880 units:$ per unit $ per unitprice 80Sellingcosts:LessVariable production 30Other variable 10Fixed 25(65)Profit 15What is the weekly break-even point (in units)?a) 900b) 1,440c) 1,800( )d) 4,8002 marks Question 37A company is considering its option with regard to a machine which cost $60,000 f our years ago. If sold the machine would generate scrap proceeds of $75,000. If kept, this machine would generate net income of $90,000. The current replacement cost for this machine is $105,000.What is the relevant cost of the machine?a) $105,000b) $90,000c) $75,000d) $60,000 ( )2 marks Question 38A company is evaluating a project that requires 4,000 kg of a material that is used r egularly in normal production. 2,500 kg of the material, purchased last month at a total cost of $20,000, are in inventory. Since last month the price of the material has increased by 2.5 per cent.What is the total relevant cost of the material for the project?a) $12,300b) $20,500c) $32,300d) $32,800 ( )2 marksA contract is under consideration that requires 800 labour hours to complete. There are 450 hours of spare labour capacity for which the workers are still being paid the normal rate of pay. The remaining hours required for the contract can be found either by overtime working paid at 50% above the normal rate of pay or by diverting labour from the manufacture of product OT. If the contract is undertaken and labour is diverted, then sales of product OT will be lost. Product OT takes seven labour hours per unit to manufacture and makes a contribution of $14 per unit. The normal rate of pay for labour is $8 per hour.What is the total relevant labour cost to the contract?a) $3,500b) $4,200c) $4,500( )d) $4,9002 marks Use the following information to solve questions 40 - 41Nelson has a standard variable overhead rate of $4 per machine hour, and each unit produced has a standard time allowed of three hours. The company’s static budget was based on 50,000 units. Actual results for the year follow.: 45,000ActualproducedunitsActual machine hours worked : 120,000Actual variable overhead incurred : $500,000Question 40Nelson’s variable-overhead spending variance:favorablea) $40,000favorableb) $60,000favorablec) $20,000( )d) $50,000favorable2 marks Question 41Nelson’s variable-overhead efficiency variance is:favorablea) $40,000favorableb) $60,000favorablec) $20,000favorabled) $50,000( )2 marksAdverse material price variance cannot be caused by:a) market changes in demand and supply of materialb) poor quality raw materialsworkers.c) Unskilled( )1 marks Question 43Thomas recently completed 24,000 units of a product that was expected to consume five pounds of direct material per finished unit. The standard price of the direct material was $6 per pound. If the firm purchased and consumed 110,000 pounds in manufacturing (cost=$605,000), the direct-materials quantity variance would be figured as:Favourablea) $55,000Favourableb) $60,000Favourablec) $115,000Unfayourabled) $60,000( )2 marks Question 44Consider the following informationActual direct labor hours 34,500Standard direct labor hours 35,500cost$241,500labordirectTotal-actualDirect-labor efficiency variance, favorable $3,200The direct labor rate variance is:a) $17,250Ub) $20,700Uc) $20,700Fd) $21,000F( )2 marksA company requires 600 kg of raw material Z for a contract it is evaluating. It has 400 kg of material Z in inventory that was purchased last month. Since then the purchase price of material Z has risen by 8% to $27 per kg. Raw material Z is used regularly by the company in normal production.What is the total relevant cost of raw material Z to the contract?a) $15,336b) $15,400c) $16,200d) $17,496 ( )2 marks Question 46In a short-term decision-making context, which ONE of the following would be a relevant cost?a) Specific development costs already incurred.b) The cost of special material which will be purchased.c) Depreciation on existing foxed assets.( )1 marks Question 47Which of the following would depict the logical order for preparing (1)a production budget, (2)a cash budget, (3)a sales budget, and (4)a direct-labor budget?a) 1-3-4-2b) 2-3-1-4c) 3-1-4-2d) 3-1-2-4 ( )2 marksAdams Sporting Goods sells bicycles throughout the southeastern United States. The following datawere taken from the most recent quarterly sales forecast:Expected End-of-month Sales Target inventoryApril 1,400 units 315 unitsMay 1,575 units 412 unitsJune 1,650 units 425 unitsOn the basis of the information presented, how many bicycles should the company purchase in May?a) 1,478b) 1,562c) 1,575d) 1,672( )2 marksQuestion 49The following process account has been drawn up for the last month:Process accountUnits $ Units $Opening WIP 250 3,000 Normal loss 225 450Input: Output 4,100Materials 4,500 22,500 Abnormal Loss 275Labour 37,500 Closing WIP 150______ _______4,750 4,750====== =======Work in progress has the following level of completion:Material LabourOpening WIP 100% 40%Closing WIP 100% 30%The company uses the FIFO method for valuing the output from the process and all losses occurred at the end of the process. What were the equivalent units for labour?a) 4,380 unitsb) 4,270 unitsc) 4,320 unitsd) 4,420 units ( ) 2 marksPerth operates a process costing system. The process is expected to lose 25% of input and this can be sold for $8 per kg.Inputs for the month were:at a total cost of $52,500kgmaterials 3,500Directtheperiodfor$9,625labourDirectThere is no opening or closing work in progress in the period. Actual output was 2,800 kg.What is the valuation of the output?a) $44,100b) $49,700c) $58,800d) $56,525 ( )2 marks。
ACCA F2 PartB 12
They possess substantial sales value before or after further processing Costs incurred up to this point are called common costs or joint costs. Joint costs must be apportioned between the joint products
cost of sales of the main product.
The net realisable value may be deducted from the cost of
production of the main product. The net realisable value is the final saleable value minus any post-separation costs. If by-product usual occurrence
1.2 Problems in accounting for joint products
How common costs should be apportioned
between products, in order to put a value to closing inventories and to the cost of sale (and profit) for each product. Whether it is more profitable to sell a joint product at one stage of processing, or to process the product further and sell it at a later stage.
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1、Accounting for management
1.1 Which of the following statements about qualities of good information is false ?
A It should be relevant for its purposes
B It should be communicated to the right person
C It should be completely accurate
D It should be timely
Answer：C
1.2 The sales manager has prepared a manpower plan to ensure that sales quotas for the forthcoming year are achieved.This is an example of what type of planning?
A Strategic planning
B Tactical planning
C Operational planning
D Corporate planning
Answer：B
1.3 Which of the following stastements about management acco unting information is/are true?
1 They must be stated in purely monetary terms
2 Limited companies must,by law,perpar management acco unt
3 They serve as a future planning tool and not used as a n historical record
A 1,2 and3
B 1 and 2
C 2 only
D None of the statements is true
Answer：D
1.4 Which of the following stastements is/are correct ?
1 A management control system is a term used to descri be the hardware and software used to drive a database system whi ch produces information outputs that are easily assimilated by mana gement.
2 An objectives is a course of action that an organisation might pursue in order to achieve its strategy.
3 Informaton is data that has been processed into a form meaningful to the recipient.
A 1,2 and 3
B 1 and 3
C 2 and 3
D 3 only
Answer：D
1.5 Good information should have certain qualities. Which of the following are qualities of good
Information ?
1 Complete
2 Extensive
3 Relevant
4 Accurate
A 1,2 and 3
B 1,3 and 4
C 2 and 4
D All of them
Answer：B
1.6 Monthly variance reports are an example of which one of th
e following types o
f management?
A Tactical
B Strategic
C Non-financial
D Operational
Answer：A
1.7 Which of the following stastements is/are correct ?
1 Strategic planning is carried out by front-line managers
2 Non-financial information is relevant to management ac counting
A 1 is true and 2 is false
B 2 is true and 1 is false
C Both are true
D Both are false
Answer：B
2、Sources of data
2.1 Which of the following is/are primary sources of data ?
(i) Historical records of transport costs to be used to prepare forecasts for budgetary planning
(ii)The Annual Abstract of Statistics, published by the Office for National Statistics in the United Kingdom
(iii) Data collected by a bank in a telephone survey to monitor the effectivess of the bank’s customer services
A (i) and (ii)
B (i) and (iii)
C (i) only
D (iii) only
Answer：D
2.2 The following statements relate to different types of data
(i) Secondary data are data collected especially for a specific purpose
(ii) Discrete data can take on any value
(iii) Qualitative data are data that cannot be measured
(iv) Population data are data arising as a result of investigating a group of people or objects
Which of the statements are true ?
A (i) and (ii) only
B (ii) and (iii) only
C (ii) and (iv) only
D (iii) and (iv) only
Answer：D
2.3 Which of the following stastements are not true ?
I If a sample is selected using random sampling, it will be free from bias.
II A sampling frame is a numbered list of all items in a sample.
III In cluster sampling there is very little potential for bias.
IV In quota sampling, investigators are told to interview all the people they meet up to a certain quota.
A I,II,III and IV
B I,II and III
C II and III
D II only
Answer：C
2.4 Which of the following sampling methods require a sampling frame ?
(i) Random
(ii) Stratified
(iii) Quota
(iv) Systematic
A (i) and (ii) only
B (i),(ii) and (iii) only
C (i),(ii) and (iv) only
D (iii) only
Answer：C
2.5 Which of the following explains the essence of quote sampling ?
A Each element of the population has an equal chance of being chosen
B Every nth member of the population is selected
C Every element of one definable sub-section of the population is selected
D None of the above
Answer：D。