(i) The mix variance can be calculated by taking the difference between the actual quantity in the standard mix and the actual quantity in the actual mix, then multiplying it by the actual cost per kg
(ii) The mix variance arises because there is a difference between what the input should have been for the output achieved and the actual output
Which of the above statements is/are correct?
A.Neither (i) nor (ii)
B.Both (i) and (ii)
C.(i) only
D.(ii) only
第1题
ct for environment-related costs and environment-driven costs?
A.Environment-related costs can be attributed to joint cost centres and environment-driven costs cannot be
B.Environment-driven costs can be attributed to joint cost centres and environment-related costs cannot be
C.Both environment-related costs and environment-driven costs can be attributed to joint cost centres
D.Neither environment-related costs nor environment-driven costs can be attributed to joint cost centres
第2题
Which of the following statements describes target costing?
A.It calculates the expected cost of a product and then adds a margin to it to arrive at the target selling price
B.It allocates overhead costs to products by collecting the costs into pools and sharing them out according to each product’s usage of the cost driving activity
C.It identifies the market price of a product and then subtracts a desired profit margin to arrive at the target cost
D.It identifies different markets for a product and then sells that same product at different prices in each market
第3题
ces in the Lesting region, which is based in the south of the country ‘Alaia’. These services include, amongst other things, responsibility for residents’ welfare, schools, housing, hospitals, roads and waste management.
Over recent months the Lesting region experienced the hottest temperatures on record, resulting in several forest fires, which caused damage to several schools and some local roads. Unfortunately, these hot temperatures were then followed by flooding, which left a number of residents without homes and saw higher than usual numbers of admissions to hospitals due to the outbreak of disease. These hospitals were full and some patients were treated in tents. Residents have been complaining for some years that a new hospital is needed in the area.
Prior to these events, the LRA was proudly leading the way in a new approach to waste management, with the introduction of its new ‘Waste Recycling Scheme.’ Two years ago, it began phase 1 of the scheme and half of its residents were issued with different coloured waste bins for different types of waste. The final phase was due to begin in one month’s time. The cost of providing the new waste bins is significant but LRA’s focus has always been on the long-term savings both to the environment and in terms of reduced waste disposal costs.
The LRA is about to begin preparing its budget for the coming financial year, which starts in one month’s time. Over recent years, zero-based budgeting (ZBB) has been introduced at a number of regional authorities in Alaia and, given the demand on resources which LRA faces this year, it is considering whether now would be a good time to introduce it.
Required:
(a) Describe the main steps involved in preparing a zero-based budget. (3 marks)
(b) Discuss the problems which the Lesting Regional Authority (LRA) may encounter if it decides to introduce and use ZBB to prepare its budget for the coming financial year. (9 marks)
(c) Outline THREE potential benefits of introducing zero-based budgeting at the LRA. (3 marks)
第4题
information systems:
(i) A transaction processing system collects and records the transactions of an organisation
(ii) An executive information system is a way of integrating the data from all operations within the organisation into a single system
Which of the above statements is/are true?
A.(i) only
B.(ii) only
C.Both (i) and (ii)
D.Neither (i) nor (ii)
第5题
accounting:
(i) Inventory levels should be kept to a minimum
(ii) All machines within a factory should be 100% efficient, with no idle time
Which of the above statements is/are correct?
A.(i) only
B.(ii) only
C.Both (i) and (ii)
D.Neither (i) nor (ii)
第6题
ngs around the world.
The standard cost for the plastic that goes into making a card is $4 per kg and each card uses 40g of plastic after an allowance for waste. In November 100,000 cards were produced and sold by SN and this was well above the budgeted sales of 60,000 cards.
The actual cost of the plastic was $5·25 per kg and the production manager (who is responsible for all buying and production issues) was asked to explain the increase. He said ‘World oil price increases pushed up plastic prices by 20% compared to our budget and I also decided to use a different supplier who promised better quality and increased reliability for a slightly higher price. I know we have overspent but not all the increase in plastic prices is my fault’ The actual usage of plastic per card was 35g per card and again the production manager had an explanation. He said ‘The world-wide standard size for security cards increased by 5% due to a change in the card reader technology, however, our new supplier provided much better quality of plastic and this helped to cut down on the waste.’
SN operates a just in time (JIT) system and hence carries very little inventory.Required:
(a) Calculate the total material price and total material usage variances ignoring any possible planning error in the figures. (4 marks)
(b) Analyse the above total variances into component parts for planning and operational variances in as much detail as the information allows. (8 marks)
(c) Assess the performance of the production manager. (8 marks)
第7题
t on temporary workers, whom it hires on three-month contracts whenever production requirements increase. All buying of materials is the responsibility of the company’s purchasing department and the company’s policy is to hold low levels of raw materials in order to minimise inventory holding costs. Bokco uses cost plus pricing to set the selling prices for its products once an initial cost card has been drawn up. Prices are then reviewed on a quarterly basis. Detailed variance reports are produced each month for sales, material costs and labour costs. Departmental managers are then paid a monthly bonus depending on the performance of their department.
One month ago, Bokco began production of a new product. The standard cost card for one unit was drawn up to include a cost of $84 for labour, based on seven hours of labour at $12 per hour. Actual output of the product during the first month of production was 460 units and the actual time taken to manufacture the product totalled 1,860 hours at a total cost of $26,040.
After being presented with some initial variance calculations, the production manager has realised that the standard time per unit of seven hours was the time taken to produce the first unit and that a learning rate of 90% should have been anticipated for the first 1,000 units of production. He has consequently been criticised by other departmental managers who have said that, ‘He has no idea of all the problems this has caused.’
Required:
(a) Calculate the labour efficiency planning variance and the labour efficiency operational variance AFTER taking account of the learning effect. Note: The learning index for a 90% learning curve is –0·1520 (5 marks)
(b) Discuss the likely consequences arising from the production manager’s failure to take into account the learning effect before production commenced. (5 marks)
第8题
elds before paying. F Co is concerned that a large number of customers are eating some of the fruit whilst picking it and are therefore not paying for all of it. As a result, it has to decide whether to hire staff to pick and package the fruit instead. The following values and costs have been identified:
(i) The total sales value of the fruit currently picked and paid for by customers
(ii) The cost of growing the fruit
(iii) The cost of hiring staff to pick and package the fruit
(iv) The total sales value of the fruit if it is picked and packaged by staff instead
Which of the above are relevant to the decision?
A.All of the above
B.(ii), (iii) and (iv) only
C.(i), (ii) and (iv) only
D.(i), (iii) and (iv) only
第9题
c life of the equipment is expected to be 50 years, with no resale value at the end of the period. The forecast return on the initial investment is 15% per annum before depreciation. The division’s cost of capital is 7%.
What is the expected annual residual income of the initial investment?
A.$0
B.($270,000)
C.$162,000
D.$216,000
第10题
ing a new design of massaging chair to launch into the competitive market in which they operate.
They have carried out an investigation in the market and using a target costing system have targeted a competitive selling price of $120 for the chair. BCC wants a margin on selling price of 20% (ignoring any overheads).
The frame. and massage mechanism will be bought in for $51 per chair and BCC will upholster it in leather and assemble it ready for despatch.
Leather costs $10 per metre and two metres are needed for a complete chair although 20% of all leather is wasted in the upholstery process.
The upholstery and assembly process will be subject to a learning effect as the workers get used to the new design.
BCC estimates that the first chair will take two hours to prepare but this will be subject to a learning rate (LR) of 95%.
The learning improvement will stop once 128 chairs have been made and the time for the 128th chair will be the time for all subsequent chairs. The cost of labour is $15 per hour.
The learning formula is shown on the formula sheet and at the 95% learning rate the value of b is -0·074000581.
Required:
(a) Calculate the average cost for the first 128 chairs made and identify any cost gap that may be present at
that stage. (8 marks)
(b) Assuming that a cost gap for the chair exists suggest four ways in which it could be closed. (6 marks)
The production manager denies any claims that a cost gap exists and has stated that the cost of the 128th chair will be low enough to yield the required margin.
(c) Calculate the cost of the 128th chair made and state whether the target cost is being achieved on the 128th chair. (6 marks)
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