1 December 2014 June 2015 Edition STUDY QUESTION BANK ACCA Paper F5 PERFORMANCE MANAGEMENT ATC International became a part of Becker Professional Education in ATC International has 20 years of experience providing lectures and learning tools for ACCA Professional Qualifications. Together, Becker Professional Education and ATC International offer ACCA candidates high quality study materials to maximize their chances of success.
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3 ACCA PAPER F5 PERFORMANCE MANAGEMENT STUDY QUESTION BANK For Examinations to June DeVry/Becker Educational Development Corp. All rights reserved. (i)
4 No responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication can be accepted by the author, editor or publisher. This training material has been prepared and published by Becker Professional Development International Limited: 16 Elmtree Road Teddington TW11 8ST United Kingdom Copyright 2014 DeVry/Becker Educational Development Corp. All rights reserved. The trademarks used herein are owned by DeVry/Becker Educational Development Corp. or their respective owners and may not be used without permission from the owner. No part of this training material may be translated, reprinted or reproduced or utilised in any form either in whole or in part or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying and recording, or in any information storage and retrieval system without express written permission. Request for permission or further information should be addressed to the Permissions Department, DeVry/Becker Educational Development Corp. Acknowledgement Past ACCA examination questions are the copyright of the Association of Chartered Certified Accountants and have been reproduced by kind permission. (ii) 2014 DeVry/Becker Educational Development Corp. All rights reserved.
5 STUDY QUESTION BANK PERFORMANCE MANAGEMENT (F5) CONTENTS Question Page Answer Marks Date worked FORMULAE Formulae sheet COST ACCOUNTING 1 Abbot Manufacturing Sunshine Sales Co ACTIVITY BASED COSTING 3 PLB Co Egerton Manufacturing Co DEVELOPMENTS IN MANAGEMENT ACCOUNTING 5 Flopro Telmat Environmental management accounting RELEVANT COSTS ANALYSIS 8 Ennerdale Co Z Co Parser Co (ACCA D01) COST VOLUME PROFIT ANALYSIS 11 Apple, Bravo and Charlie LIMITING FACTOR DECISIONS 12 BVX Optimal production plan PRICING 14 Rothwell Co Slade Tabular approach (ACCA D03) Albany (ACCA D01) RISK AND UNCERTAINTY 18 Mr Ellis Decision Trees BUDGETING (v) 20 ZBB Hotel Excel BRT Co DeVry/Becker Educational Development Corp. All rights reserved. (iii)
6 PERFORMANCE MANAGEMENT (F5) STUDY QUESTION BANK Question Page Answer Marks Date worked QUANTITATIVE ANALYSIS IN BUDGETING 23 Tomkins Co Velo Racers BASIC VARIANCE ANALYSIS 25 Portland Co Dallas Co ADVANCED VARIANCE ANALYSIS 27 Wiffy Co Pan Ocean Chemicals (ACCA PP) BEHAVIOURAL ASPECTS OF STANDARD COSTING 29 Denzel Co EGJ Products Co PERFORMANCE MEASUREMENT 31 Darth Co Ties Only Co (ACCA D07) FURTHER ASPECTS OF PERFORMANCE MEASUREMENT 33 Cadco Value for money Bank operations DIVISIONAL PERFORMANCE EVALUATION 36 Two-minds Co Bablings (89) Co TRANSFER PRICING 38 Musent Co Able and Baker PERFORMANCE MANAGEMENT INFORMATION SYSTEMS 40 Hotelco FURTHER PRACTICE QUESTIONS 41 Scovet (ACCA J01) Budget behaviour (ACCA) Budgeting & costing (ACCA J05) Mermus Co (ACCA D04) Balanced Scorecard (ACCA) (iv) 2014 DeVry/Becker Educational Development Corp. All rights reserved.
7 STUDY QUESTION BANK PERFORMANCE MANAGEMENT (F5) Formulae Sheet Learning curve Y = ax b Where Y = cumulative average time per unit to produce x units a = time taken for the first unit of output x = total number of units produced b = the index of learning (log LR/log 2) LR = the learning rate as a decimal Demand curve P = a bq b = change in price change in quantity a = price when Q = 0 MR = a 2bQ 2014 DeVry/Becker Educational Development Corp. All rights reserved. (v)
8 PERFORMANCE MANAGEMENT (F5) STUDY QUESTION BANK (vi) 2014 DeVry/Becker Educational Development Corp. All rights reserved.
9 STUDY QUESTION BANK PERFORMANCE MANAGEMENT (F5) Question 1 ABBOT MANUFACTURING Abbot Manufacturing has two departments, each making a single standardised product. The data for unit cost and selling price of these products are as follows: Department Department Alpha Beta $ $ Direct material cost Direct labour cost Variable manufacturing overheads Fixed manufacturing overheads Factory cost Profit mark-up 50% 10 25% 7.50 Selling price The factory cost figures are used in the departmental accounts for the valuation of finished goods inventory. The departmental income statements have been prepared for the year to 30 June. These are given below separately for the two halves of the year. Departmental income statements for the year to 30 June 20X9 1 Jul 31 Dec 20X8 1 Jan 30 Jun 20X9 Department Alpha Beta Alpha Beta $000 $000 $000 $000 Sales revenue Manufacturing costs Direct material Direct labour Variable overheads Fixed overheads Factory cost of production Add: Opening inventory of finished goods Less: Closing inventory of finished goods (120) (180) (20) (300) Factory cost of goods sold Administrative and selling costs Cost of sales Net profit DeVry/Becker Educational Development Corp. All rights reserved. 1
10 PERFORMANCE MANAGEMENT (F5) STUDY QUESTION BANK The total sales revenue was the same in each six monthly period but in the second half of the year the company increased the sales of Department Alpha (which has the higher profit mark-up) and reduced the sales of Department Beta (which has the lower profit mark-up). An increase in company profits for the second six months was anticipated but the profit achieved was $8,000 lower for the second half of the year than for the first half. The profit for Department Alpha fell by $41,000, while the profit for Department Beta rose by $33,000. There has been no change in prices of inputs or outputs. Required: Explain the situation described in the last paragraph. Illustrate your answer with appropriate supporting calculations. (8 marks) Redraft the departmental income statements using marginal cost to value unsold inventory. (7 marks) Question 2 SUNSHINE SALES CO Sunshine Sales Co is drafting a budget on the basis of the following data: Direct material Direct labour Variable production expenses Fixed production costs Normal output 9,000 units per month Sales price $10 per unit $5 per unit $8 per unit $27,000 per month 90% capacity $30 per unit (15 marks) In order to build up inventory in anticipation of an increase in demand that is expected later in the year, production is to exceed sales in the first three months of the year as follows: Required: Month 1 Month 2 Month 3 Production 6,500 9,000 10,000 Sales 5,000 8,500 9,500 Prepare two profit statements, both in comparative columnar form, covering each of the three months (i) On a marginal costing basis; and (7 marks) (ii) On a full absorption costing basis. (8 marks) Reconcile the difference in profits for each month. (5 marks) (20 marks) DeVry/Becker Educational Development Corp. All rights reserved.
11 STUDY QUESTION BANK PERFORMANCE MANAGEMENT (F5) Question 3 PLB CO PLB Co is a company producing bulk meat substitutes for the vegetarian food industry. It produces three meat types: pork (P), lamb (L) and beef (B). Direct costs per tonne are as follows: P L B Materials $500 $700 $850 Labour time 12 hours 14 hours 8 hours Budget production (tonnes) 1, Direct labour costs $10 per hour The company has just completed an activity based costing exercise. For the year just ended, the following activities, along with their associated costs were identified: Activity Costs $000 Machine set up cost 16,000 Ordering materials 1,125 Storage 990 Packing costs 106 Total drivers associated with each of these activities have been identified, and are shown in the table below, along with the number of units of each driver used by each of the three products: P L B Production runs Inventory orders Tonne days of storage ( 000) Packing costs are incurred on a per tonne basis, and are the same per tonne for all three products. Required: Calculate the cost of the finished products using activity based costing. Question 4 EGERTON MANUFACTURING CO (12 marks) Egerton Manufacturing Co produces a range of products at seven separate sites. Each site produces a maximum of four products. The directors have decided to introduce Activity Based Costing (ABC) and have asked each site manager to obtain and analyse the relevant data for their site. Product costs are currently calculated using absorption costing, with overheads being absorbed on a machine hour basis. As part of the process of introducing ABC, the directors wish to assess the profitability of individual products, with the possibility that the product range may be reduced. You are the Manager of the Brumley site and you have obtained the following data: 2014 DeVry/Becker Educational Development Corp. All rights reserved. 3
12 PERFORMANCE MANAGEMENT (F5) STUDY QUESTION BANK Product A B C $ $ $ Selling price per unit Direct material per unit Direct labour per unit Overheads per unit Total cost per unit Budgeted production volume 600 units 400 units 200 units Machine hours per unit Production runs in period Number of sales orders Number of deliveries of material The budgeted overheads of the site for the period are: Machine running costs $78,560 Set up costs $82,900 Material handling costs $49,500 Machine hours are limited to 1,140 hours per period. Required: Calculate the cost of each product using ABC. (12 marks) Draft a memo to the Managing Director which: (i) (ii) Question 5 FLOPRO Using the ABC information indicate which product(s) should no longer be manufactured and justifies your recommendation; (4 marks) Discusses the other factors that should be considered before a final decision is made. (4 marks) (20 marks) Flopro makes and sells two products A and B, each of which passes through the same automated production operations. The following estimated information is available for period 1: (i) Product unit data: A B Selling price per unit ($) Direct material cost ($) 2 40 Variable production overhead cost ($) 28 4 Overall hours per product unit (hours) (ii) Budgeted production/sales of products A and B are 120,000 units and 45,000 units respectively. The selling prices per unit for A and B are $60 and $70 respectively. (iii) Maximum demand for each product is 20% above the budgeted sales levels. (iv) Total fixed production overhead cost is $1,470,000. This is absorbed by products A and B at an average rate per hour based on the estimated production levels DeVry/Becker Educational Development Corp. All rights reserved.
13 STUDY QUESTION BANK PERFORMANCE MANAGEMENT (F5) One of the production operations has a maximum capacity of 3,075 hours that has been identified as a bottleneck that limits the overall production/sales of products A and B. The bottleneck hours required per product unit for products A and B are 0 02 and respectively. Required: Calculate the mix (units) of products A and B that will maximise net profit and the value ($) of the maximum net profit. (8 marks) The bottleneck situation detailed in still applies. Flopro has decided to determine the profit maximising mix of products A and B based on the throughput accounting principle of maximising the throughput return per production hour of the bottleneck resource. This may be measured as: Throughput return per production hour = (selling price material cost)/bottleneck hours per unit. All other information detailed in still applies, except that the variable overhead cost as per is now considered to be fixed for the short/intermediate term, based on the value ($) which applied to budgeted production/sales. Required: (i) (ii) (iii) Question 6 TELMAT Calculate the mix (units) of products A and B that will maximise net profit and the value of that net profit. (8 marks) Calculate the throughput accounting ratio for product B which is calculated as: throughput return per hour of bottleneck resource for product B/overall total overhead cost per hour of bottleneck resource. (3 marks) Comment on the interpretation of throughput accounting ratios and their use as a control device. You should refer to the ratio for product B in your answer. (6 marks) (25 marks) Telmat is a company that manufactures mobile phones. This market is extremely volatile and competitive and achieving adequate product profitability is extremely important. Telmat is a mature company that has been producing electronic equipment for many years and has all the costing systems in place that one would expect in such a company. These include a comprehensive overhead absorption system, annual budgets and monthly variance reports and the balanced scorecard for performance measurement. The company is considering introducing: Required: Target costing; and Life cycle costing systems. Discuss the advantages (or otherwise) that this specific company is likely to gain from these two systems. (10 marks) 2014 DeVry/Becker Educational Development Corp. All rights reserved. 5
14 PERFORMANCE MANAGEMENT (F5) STUDY QUESTION BANK Question 7 ENVIRONMENANTAL MANAGEMENT ACCOUNTING There are three reasons why implementing an environmental management accounting system makes sense- cost savings, improved environmental reporting and minimising environmental risk. Required Explain what environmental management accounting means. (2 marks) Explain how good environmental behaviour may help an organisation to achieve each of the following: (i) (ii) (iii) Question 8 ENNERDALE CO Cost savings; Improved environmental reporting; Minimising environmental risk. (6 marks) (8 marks) Ennerdale Co has been asked to quote a price for a one-off contract. The company s management accountant has asked for your advice on the relevant costs for the contract. The following information is available: Materials The contract requires 3,000 kg of material K, which is a material used regularly by the company in other production. The company has 2,000 kg of material K currently in stock that had been purchased last month for a total cost of $19,600. Since then the price per kilogram for material K has increased by 5%. The contract also requires 200 kg of material L. There are 250 kg of material L in stock, which are not required for normal production. This material originally cost a total of $3,125. If not used on this contract, the stock of material L would be sold for $11 per kg. Labour The contract requires 800 hours of skilled labour. Skilled labour is paid $9 50 per hour. There is a shortage of skilled labour and all the available skilled labour is fully employed in the company in the manufacture of product P. The following information relates to product P: $ per unit $ per unit Selling price 100 Less Skilled labour 38 Other variable costs 22 (60) DeVry/Becker Educational Development Corp. All rights reserved.
15 STUDY QUESTION BANK PERFORMANCE MANAGEMENT (F5) Required: Question 9 Z CO Prepare calculations showing the total relevant costs for making a decision about the contract in respect of the following cost elements: (i) Materials K and L; and (ii) Skilled labour. (7 marks) Explain how you would decide which overhead costs would be relevant in the financial appraisal of the contract. (3 marks) (10 marks) Z is one of a number of companies that produce three products for an external market. The three products, R, S and T may be bought or sold in this market. The common process account of Z for March 2011 is shown below: Kg $ Kg $ Inputs: Material A 1,000 3,500 Normal loss Material B 2,000 2,000 Outputs: Material C 1,500 3,000 Product R 800 3,500 Direct labour 6,000 Product S 2,000 8,750 Variable overhead 2,000 Product T 1,200 5,250 Fixed cost 1,000 Totals 4,500 17,500 4,500 17,500 Z can sell products R, S or T after this common process or they can be individually further processed and sold as RZ, SZ and TZ respectively. The market prices for the products at the intermediate stage and after further processing are: Market prices per kg: $ R 3.00 S 5.00 T 3.50 RZ 6.00 SZ 5.75 TZ 6.75 The specific costs of the three individual further processes are: Required: Process R to RZ variable cost of $1.40 per kg, no fixed costs Process S to SZ variable cost of $0.90 per kg, no fixed costs Process T to TZ variable cost of $1.00 per kg, fixed cost of $600 per month Produce calculations to determine whether any of the intermediate products should be further processed before being sold. Clearly state your recommendations together with any relevant assumptions that you have made. (6 marks) 2014 DeVry/Becker Educational Development Corp. All rights reserved. 7
16 PERFORMANCE MANAGEMENT (F5) STUDY QUESTION BANK Produce calculations to assess the viability of the common process: (i) Assuming that there is an external market for products R, S and T; and (ii) Assuming that there is not an external market for products R, S and T. State clearly your recommendations. Question 10 PARSER CO (7 marks) (13 marks) The managing director of Parser Co, a small business, is considering undertaking a one-off contract and has asked her inexperienced accountant to advise on what costs are likely to be incurred so that she can price at a profit. The following schedule has been prepared: Costs for special order: Notes: Notes $ Direct wages 1 28,500 Supervisor costs 2 11,500 General overheads 3 4,000 Machine depreciation 4 2,300 Machine overheads 5 18,000 Materials 6 34,000 98,300 (1) Direct wages comprise the wages of two employees, particularly skilled in the labour process for this job, who could be transferred from another department to undertake work on the special order. They are fully occupied in their usual department and sub-contracting staff would have to be bought-in to undertake the work left behind. Subcontracting costs would be $32,000 for the period of the work. Different subcontractors who are skilled in the special order techniques are available to work on the special order and their costs would amount to $31,300. (2) A supervisor would have to work on the special order. The cost of $11,500 is comprised of $8,000 normal payments plus $3,500 additional bonus for working on the special order. Normal payments refer to the fixed salary of the supervisor. In addition, the supervisor would lose incentive payments in his normal work amounting to $2,500. It is not anticipated that any replacement costs relating to the supervisor s work on other jobs would arise. (3) General overheads comprise an apportionment of $3,000 plus an estimate of $1,000 incremental overheads. (4) Machine depreciation represents the normal period cost based on the duration of the contract. It is anticipated that $500 will be incurred in additional machine maintenance costs. (5) Machine overheads (for running costs such as electricity) are charged at $3 per hour. It is estimated that 6000 hours will be needed for the special order. The machine has 4000 hours available capacity. The further 2000 hours required will mean an existing job is taken off the machine resulting in a lost contribution of $2 per hour DeVry/Becker Educational Development Corp. All rights reserved.
17 STUDY QUESTION BANK PERFORMANCE MANAGEMENT (F5) (6) Materials represent the purchase costs of 7,500 kg bought some time ago. The materials are no longer used and are unlikely to be wanted in the future except on the special order. The complete Inventory of materials (amounting to 10,000 kg), or part thereof, could be sold for $4 20 per kg. The replacement cost of material used would be $33,375. Because the business does not have adequate funds to finance the special order, a bank overdraft amounting to $20,000 would be required for the project duration of three months. The overdraft would be repaid at the end of the period. The company uses a cost of capital of 20% to appraise projects. The bank s overdraft rate is 18%. The managing director has heard that, for special orders such as this, relevant costing should be used that also incorporates opportunity costs. She has approached you to create a revised costing schedule based on relevant costing principles. Required: Briefly explain what is meant by opportunity cost. (2 marks) Adjust the schedule prepared by the accountant to a relevant cost basis, incorporating appropriate opportunity costs. (11 marks) Question 11 APPLE, BRAVO AND CHARLIE (13 marks) A company manufactures and sells three products which currently have the following annual trading performance: Product A B C $000 $000 $000 Sales 1,794 3,740 2,950 Production cost of sales 1,242 2,860 1,888 Gross profit ,062 Non-production overheads Net profit Sales units (000) 1,150 2,200 2,360 For each product, units produced and sold were the same in the period. Fixed production overheads are absorbed at a rate of $0.30 per unit for each product. Non-production overheads include certain costs that vary with activity at, a rate of 10% of sales value. The remaining non-production overheads are fixed costs. Required: Prepare a statement, in marginal costing format, showing the sales, costs, and profit contribution of each product expressed both in $ per unit (to three decimal places) and also as a % of sales (to one decimal place) (8 marks) 2014 DeVry/Becker Educational Development Corp. All rights reserved. 9
18 PERFORMANCE MANAGEMENT (F5) STUDY QUESTION BANK Calculate, based on the current mix of sales, the sales required of each product (to the nearest $000) in order to generate a total contribution of $3.75m per annum. (6 marks) Question 12 BVX (14 marks) BVX manufactures three garden furniture products chairs, benches and tables. The budgeted unit cost and resource requirements of each of these items are detailed below: Chair Bench Table $ $ $ Timber cost Direct labour cost Variable overhead cost Fixed overhead cost Budgeted volumes per annum 4,000 2,000 1,500 These volumes are believed to equal the market demand for these products. Fixed overhead costs are attributed to the three products on the basis of direct labour hours. The labour rate is $4.00 per hour. The cost of the timber is $2.00 per square metre. The products are made from a specialist timber. A memo from the purchasing manager advises you that because of a problem with the supplier, it is to be assumed that this specialist timber is limited in supply to 20,000 square metres per annum. The sales director has already accepted an order for 500 chairs, 100 benches and 150 tables which if not supplied would incur a financial penalty of $2,000. These quantities are included in the market demand estimates above. The selling prices of the three products are: Required: Chair $20.00 Bench $50.00 Table $40.00 Determine the optimum production plan and state the net profit that this should yield per annum. (6 marks) Calculate and explain the maximum price which should be paid per square metre in order to obtain extra supplies of the timber. (4 marks) Question 13 OPTIMAL PRODUCTION PLAN (10 marks) A company uses linear programming to establish an optimal production plan in order to maximise profit. The company finds that for the next year materials and labour are likely to be in short supply. Details of the company s products are as follows: DeVry/Becker Educational Development Corp. All rights reserved.
19 STUDY QUESTION BANK PERFORMANCE MANAGEMENT (F5) A B $ $ Materials (at $2 per kg) 6 8 Labour (at $6 per hour) Variable overheads (at $1 per hour) 5 3 Variable cost Selling price Contribution 9 23 There are only 30,000 kg of materials and 36,000 labour hours available. The company also has an agreement to supply 1,000 units of product A which must be met. Required: Formulate the objective function and constraint equations for this problem. (4 marks) Plot the constraints on a suitable graph and determine the optimal production plan. (6 marks) Question 14 ROTHWELL CO (10 marks) Rothwell Co makes various novelty items that are sold to wholesalers particularly in the toy trade. It has just decided to produce a new line, namely small umbrellas to decorate cocktails, which will be sold to various chains of cocktail bars and called a bar brolly. It has provided you with the following information concerning the total cost of annual production and the prices at which that production could be sold: Required: Annual production Total cost Selling price and sales (per 100) (boxes of 100) $000 $ 2, , , , , , , Determine the optimal selling price for bar brollies. Question 15 SLADE (10 marks) Hill Co has recently developed a new product, the Slade. Its parent company, Powell, requires that subsidiaries achieve of 16% a return on opening capital employed on all new investment. Financial data regarding the development and production of the Slade is as follows: The development of the product took three years and cost $120,000. It is anticipated that demand for the product will be 4,000 units per annum and that it will last six years DeVry/Becker Educational Development Corp. All rights reserved. 11
20 PERFORMANCE MANAGEMENT (F5) STUDY QUESTION BANK Investment in machinery will amount to $200,000 and this will be scrapped at the end of the product s life for $20,000. Incremental cash fixed costs will be $40,000 per year and the unit variable cost of production is expected to be $50. Required: Calculate a price which, based on the above data, will achieve the target ROCE of 16%. (8 marks) Question 16 TABULAR APPROACH A company manufactures a single product, product Y. It has documented levels of demand at certain selling prices for this product as follows: Required: Demand Selling price per unit Cost per unit Units $ $ 1, , , , Using a tabular approach calculate the marginal revenues and marginal costs for product Y at the different levels of demand, and so determine the selling price at which the company profits are maximised. (10 marks) Question 17 ALBANY Albany has recently spent some time on researching and developing a new product for which they are trying to establish a suitable price. Previously they have used cost plus 20% to set the selling price. The standard cost per unit has been estimated as follows: $ Direct materials Material 1 10 (4 kg at $2 50/kg) Material 2 7 (1 kg at $7/kg) Direct labour 13 (2 hours at $6 50/hour) Fixed overheads 7 (2 hours at $3 50/hour) 37 Required: Using the standard costs calculate two different cost plus prices using two different bases and explain an advantage and disadvantage of each method. (6 marks) DeVry/Becker Educational Development Corp. All rights reserved.
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December 2014 June 2015 Edition ATC International became a part of Becker Professional Education in 2011. ATC International has 20 years of experience providing lectures and learning tools for ACCA Professional
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO. Performance Pillar P2 Performance Management Instructions to candidates Thursday 28 August 2014 You are allowed three hours to answer this question
Management Level Paper P2 Performance Management March 2014 examination Examiner s Answers Note: Some of the answers that follow are fuller and more comprehensive than would be expected from a well-prepared
Answers Fundamentals Level Skills Module, Paper F5 Performance Management June 2014 Answers 1 (a) Full budgeted production cost per unit using absorption costing Product X Y Z Total Budgeted annual production
RELEVANT TO ACCA QUALIFICATION PAPER P3 Studying Paper P3? Performance objectives 7, 8 and 9 are relevant to this exam Business forecasting and strategic planning Quantitative data has always been supplied
FOUNTIONS IN OUNTNY Managing osts and Finance Specimen Exam applicable from June 2014 Time allowed: 2 hours LL 50 questions are compulsory and MUST be attempted. Paper M2 o NOT open this paper until instructed
Performance Management (F5) September 2016 to June 2017 This syllabus and study guide is designed to help with planning study and to provide detailed information on what could be assessed in any examination
7 Marginal and absorption costing this chapter covers... This chapter focuses on the costing methods of marginal and absorption costing and compares the profit made by a business under each method. The
Management Accounting (F2/FMA) February 2013 to January 2014 This syllabus and study guide is designed to help with teaching and learning and is intended to provide detailed information on what could be
Accounting Draft GCE AS and A level subject content September 2015 Contents The content for AS and A level accounting 3 Introduction 3 Aims and objectives 3 Subject content 4 Knowledge and understanding
General Comments This sitting produced a slightly disappointing pass rate, towards the lower end compared to previous sittings. Whilst the overall performance of candidates was disappointing, it was encouraging
Fundamentals Level Skills Module Performance Management Specimen Exam applicable from December 2014 Time allowed Reading and planning: 15 minutes Writing: 3 hours This paper is divided into two sections:
63 COSTS AND COSTING 6 PROFIT AND LOSS AND BALANCE SHEETS Simple Financial Calculations Analysing Performance - The Balance Sheet Analysing Performance Analysing Financial Performance Profit And Loss Forecast
Pricing decisions and profitability analysis Solutions to Chapter 11 questions Question 11.24 (a) (b) Computation of full costs and budgeted cost-plus selling price EXE WYE Stores Maintenance Admin ( m)
INDUSTRIAL UNIVERSITY OF HO CHI MINH CITY AUDITING ACCOUNTING FACULTY 10.SHORT-TERM DECISIONS & CAPITAL INVESTMENT APPRAISAL 4 Topic List INDUSTRIAL UNIVERSITY OF HO CHI MINH CITY AUDITING ACCOUNTING FACULTY
1. CVP analysis and purposes: Profit per unit of a product depends on its selling price and cost of sales. Total profit depends on sales volume which in turn depends inter alia on selling price. By and
CE2451 Engineering Economics & Cost Analysis Dr. M. Selvakumar Associate Professor Department of Civil Engineering Sri Venkateswara College of Engineering Objectives of this course The main objective of
Chapter 4 Solutions Question 4.1 A) Explain the following The term marginal cost refers to the additional costs incurred in providing a unit of product or service. The term contribution refers to the amount
Chapter 10 Working capital 1 10.1 Working capital Working capital is the capital available for conducting the day-to-day operations of the business and consists of current assets and current liabilities.
OPERATIONAL CASE STUDY PRACTICE EXAM ANSWERS The Practice Exam can be viewed at http://www.pearsonvue.com/cima/practiceexams/ These answers have been provided by CIMA for information purposes only. The
KB 2 Business Management Accounting Suggested Answers and 1 SECTION 1 Question 01 Relevant learning outcome/s: 1.1.1 Assess the key features of the absorption costing method and the ABC method. 1.1.2 Demonstrate
Management Accounting 2 nd Year Examination August 2013 Exam Paper, Solutions & Examiner s Report NOTES TO USERS ABOUT THESE SOLUTIONS The solutions in this document are published by Accounting Technicians
CHAPTER 12 Cost Sheet ( or) Statement of Cost Introduction ELEMENTS OF COST Elements of cost are necessary to have a proper classification and analysis of total cost. Thus, elements of cost provide the
Answers Fundamentals Level Skills Module, Paper F5 Performance Management June 2013 Answers 1 (a) Decision tree Option 1 $10 413m D Option 2 $(360k) 5,250 members: net income $640 per annum 6,000 members
Fundamentals Pilot Paper Knowledge module Management ccounting Time allowed: 2 hours LL FIFTY questions are compulsory and MUST be attempted. Paper F2 o NOT open this paper until instructed by the supervisor.
Level 1/2/3 Award in Business Finance (8990) Qualification handbook 500/4376/6 Level 1 500/4377/8 Level 2 500/4306/7 Level 3 www.cityandguilds.com May 2009 Version 2.0 About City & Guilds City & Guilds
FOUNTIONS IN OUNTNY Management Information Specimen Exam applicable from June 2014 Time allowed: 2 hours LL 50 questions are compulsory and MUST be attempted. Paper M1 o NOT open this paper until instructed
CIMA Chartered Management Accounting Qualification 2010 Student Support Guide Paper P1 Performance Operations Introduction This guide outlines matters to be considered by those wishing to sit the examination
P1 Performance Operations DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO SO Performance Pillar P1 Performance Operations Wednesday 28 August 2013 Instructions to candidates You are allowed three
MGT402 - Cost & Management Accounting Glossary For Final Term Exam Preparation Glossary Absorption costing : Includes all manufacturing costs --- including direct materials, direct labor, and both variable
2013 Accounting Higher - Solutions Finalised Marking Instructions Scottish Qualifications Authority 2013 The information in this publication may be reproduced to support SQA qualifications only on a non-commercial
Cost and Management Accounting Sixth Edition Students Manual Colin Drury Australia Canada Mexico Singapore Spain United Kingdom United States Cost and Management Accounting 6e: Students Manual Colin Drury
Fundamentals Pilot Paper Skills module Financial Management Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FOUR questions are compulsory and MUST be attempted. Do NOT open this paper
CHAPTER 16 Learning Curve Theory Basic Concepts Learning Curve Learning curve is a geometrical progression, which reveals that there is steadily decreasing cost for the accomplishment of a given repetitive
University of Waterloo Final Examination Term: Winter Year: 2006 Student Name UW Student ID Number Place an X by the section in which you are registered: 1 (MWF 8:30 am to 9:20 am) 2 (MWF 9:30 am to 10:20
Answers ACCA Certified Accounting Technician Examination Paper T7 Planning, Control and Performance Management June 09 Answers Section A 1 A ($2,000 x 1 160) = $1,500 = A 2 B (5,000 + 23 x 4,000 1,500)
CHAPTER 2 Decision Making using Cost Concepts and CVP Analysis Basic Concepts Absorption Costing * Assigns direct costs and all or part of overhead to cost units using one or more overhead absorption rates.
CASH BUDGETS AND RELATED TOPICS Article relevant to Formation 2 Management Accounting Author: Neil Hayden, current Examiner. In projected cash flow statements the information can be presented in a variety
E For Examinations to June 2015 PL Revision Essentials ACCA SA M Paper F9 FINANCIAL MANAGEMENT Becker Professional Education has more than 20 years of experience providing lectures and learning tools for
1 JUNE 2012 EXAMINATION D2. Business Finance Instructions to candidates 1. Time allowed is 3 hours and 10 minutes, which includes 10 minutes reading time. 2. This is a closed book examination. 3. Use of
12 Marginal Costing BASIC CONCEPTS AND FORMULAE Basic Concepts 1. Absorption Costing: a method of costing by which all direct cost and applicable overheads are charged to products or cost centers for finding
Unit 7: Management Accounting Unit code: QCF Level 3: Credit value: 10 Guided learning hours: 60 Aim and purpose J/502/5419 BTEC National The aim of this unit is to enable learners to understand how important
UNIT2:- Session 1-3 :- Cost analysis for planning and decision making :- * Cost classification and approach :- A- Marginal costing :- - variable and fixed. - Variable cost is charged to the product unit.
Activity-based costing The traditional methods of cost allocation, cost apportionment and absorption into products are being challenged by some writers who claim that much information given to management
Management Level Paper P2 Performance Management September 2014 examination Examiner s Answers Note: Some of the answers that follow are fuller and more comprehensive than would be expected from a well-prepared