A jewellery company makes rings (R) and necklaces (N).
The resources available to the company have been analysed and two constraints have been identified:
Labour time 3R + 2N ≤ 2,400 hours
Machine time 0·5R + 0·4N ≤ 410 hours
The management accountant has used linear programming to determine that R = 500 and N = 400.
Which of the following is/are slack resources?
(1) Labour time available
(2) Machine time available
A.1 only
B.2 only
C.Both 1 and 2
D.Neither 1 nor 2
第1题
Background: A jewellery company provides customers with customized products according to their own preferences. Up to now this company only serves the local people within Shenzhen, a southern city in China. This company has its own website on which some typical customized jewelleries are exhibited. Anyhow, this company still take orders from customers by phone or face-to-face interaction. Faced with the fierce competition in the market, the company is eager to improve its service and expand its market to all over China. It thinks that E-Business and online marketing can be of great aid in growing its business. Task: Develop an e-business marketing plan for this company.
第2题
(a) ‘Revenue recognition should always be approached as a high risk area of the audit.’
Required:
Discuss this statement. (6 marks)
(b) You are a manager in Beck & Co, responsible for the audit of Kobain Co, a new audit client of your firm, with a financial year ended 31 July 2012. Kobain Co’s draft financial statements recognise total assets of $55 million, and profit before tax of $15 million. The audit is nearing completion and you are rewiewing the audit files.
Kobain Co designs and creates high-value items of jewellery. Approximately half of the jewellery is sold in Kobain Co’s own retail outlets. The other half is sold by external vendors under a consignment stock arrangement, the terms of which specify that Kobain Co retains the ability to change the selling price of the jewellery, and that the vendor is required to return any unsold jewellery after a period of nine months. When the vendor sells an item of jewellery to a customer, legal title passes from Kobain Co to the customer.
On delivery of the jewellery to the external vendors, Kobain Co recognises revenue and derecognises inventory. At 31 July 2012, jewellery at cost price of $3 million is held at external vendors. Revenue of $4 million has been recognised in respect of this jewellery.
Required:
Comment on the matters that should be considered, and explain the audit evidence you should expect to find in your file review in respect of the consignment stock arrangement. (6 marks)
(c) Your firm also performs the audit of Jarvis Co, a company which installs windows. Jarvis Co uses sales representatives to make direct sales to customers. The sales representatives earn a small salary, and also earn a sales commission of 20% of the sales they generate.
Jarvis Co’s sales manager has discovered that one of the sales representatives has been operating a fraud, in which he was submitting false claims for sales commission based on non-existent sales. The sales representative started to work at Jarvis Co in January 2012. The forensic investigation department of your firm has been engaged to quantify the amount of the fraud.
Required:
Recommend the procedures that should be used in the forensic investigation to quantify the amount of the fraud. (4 marks)
第3题
Local success
Working together
Goldlink, a newly-founded Birmingham-based company which produces designer jewellery, has recently started working with another young local company, Prima, Goldlink commissioned Prima to help it promote the company's exciting new range of iewellery by designing a new brochure and leaflets as well as designing and building exhibition stands. Gill Smith, Goldlink's Sales Manager, explained how the relationship with Prima began and stressed how successful it had already been: 'We weren't expecting to find a local company which would meet our requirements. But then we saw an article aboul companies m the area and Prima sounded as if it'd be just the kind of company we were looking for - even if it is much smaller than com panies we usually work with. Right from the start wa liked the friendly feel of the business and the professional attitude of the staff.
The service Prima provides is excellent. For example, thanks to Prima, we won the award for best trade stand at a recent exhibition. We then got first prize for best product and .Just missed the award for best brochure, That's how good Prima's been for us!'
Assistance
Goldlink and Prima have both received considerable support in their first year of business from Andy Reilly, a consultant who offers advice to companies in the Midlands. Reilly specialises in helping small firms to secure funding such as Iow-interest bank loans. As a result of the consultant's help, ' the companies applied for and were awarded separate government grants. Samantha Barry, Managing Director of Prima, said that the assistance given by Reilly and his team in working out an appropriate business strategy for the company had been essential in making .Prima such a success. She added: 'We've also been having a few problems with our website. Although we've done all the design work ourselves, we've been really grateful to Andy Reilly for the advice he's given on structuring the content.'
Reilly says of his work: 'My work is very varied and I get to work with a lot of compames m the area, which I like. What I enjoy even more though is helping companies such as Prima and Goldlink to work to achieve their potential. It's really rewarding to see small companies doing well, especially when I've been working so closely with them.' For fiJrther information about any of the companies mentioned in this article, call: 01235 434 656.
What type of company is Prima?
A.a construction company
B.an advertising agency
C.a consultancy firm
第10题
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