Cost estimation and cost behaviour
|
|
- Jordan Harvey
- 5 years ago
- Views:
Transcription
1 Cost estimation and cost behaviour Solutions to Chapter 24 questions Question (a) The first stage is to convert all costs to a 2002 basis. The calculations are as follows: ( 000) ( 000) ( 000) ( 000) Raw materials Skilled labour 242(1.2) 4 344(1.2) 3 461(1.2) 2 477(1.2) Unskilled labour Factory overheads 168(1.15) 3 (1.2) 206(1.15) 2 (1.2) 246(1.15)(1.2) 265(1.2) Power 25(1.1)(1.25) 3 33(1.25) 3 47(1.25) 2 44(1.25) Raw materials Skilled labour Unskilled labour Factory overheads Power Total (2002 prices) Output (units) The equation Υ a bx is calculated from the above schedule of total production costs (2002 prices) and output. The calculations are as follows: Output Total cost in units (000) ( 000) x y x 2 xy Σx 750 Σy 3869 Σx Σxy We now solve the following simultaneous equations: Σy Na bσx Σxy Σxa bσx 2 Therefore a 750b (1) a b (2) Multiply equation (1) by 190 ( /750) and equation (2) by 1. Then equation (1) becomes Subtract equation (2) from equation (3): a b (3) 2970 = 10a a COST ESTIMATION AND COST BEHAVIOUR
2 Substitute for a in equation (1): x b b b 3.57 The relationship between total production costs and volume for 2002 is: y x where y total production costs (at 2002 price) and x output level. (b) See pages in Chapter 24 for the answer to this question. (c) General company overheads will still continue whether or not product LT is produced. Therefore the output of LT will not affect general production overheads. Consequently, the regression equation should not be calculated from cost data that includes general company overheads. General company overheads will not increase with increments in output of product LT. Hence short-term decisions and cost control should focus on those costs that are relevant to production of LTs. Common and unavoidable general fixed costs are not relevant to the production of LT, and should not be included in the regression equation. (a) (b) (c) = = = minutes The cumulative average time taken to produce 1000 units is minutes and the time taken to produce a total of 1000 units will therefore be minutes (i.e hours). Standard cost of 1000 units: Materials ( 28/ ) Processing cost ( hours at 25) = = = minutes Therefore the estimated time taken to produce 5000 units is minutes ( minutes) = = = minutes Therefore the estimated time taken to produce 6000 units is minutes ( minutes) so the 1000 units has taken an additional hours ( minutes minutes) giving a standard variable processing cost of 1718 (68.73 hours 25). Adding the direct material cost of gives a total standard variable cost of Revised learning curve effect: = = = minutes Question COST ESTIMATION AND COST BEHAVIOUR 193
3 The estimated total time to produce 1000 units in April is hours ( minutes/60) giving a total standard variable processing cost of 822 (32.89 hours 25). The standard direct material cost will remain unchanged at giving a total standard cost of Original budgeted profit Sales Variable costs Contribution Fixed costs Profit Actual profit Sales (900 62) Production costs: Direct materials Variable processing Fixed costs Closing stock (100 units at revised standard cost of per unit) Profit Variance calculations Processing usage/efficiency variance (original standard of 2625 revised standard of 822) 1803F Selling price variance ( 62 actual price 60 budgeted price) 900 units 1800F Sales volume (900 actual volume 1000 budgeted volume) revised stand. contrib. margin a 2970A Direct material cost (standard cost of Actual cost of ) 2396A Variable processing expenditure (Flexed budget of 2425 minutes 25/60 actual cost) 60A Variable processing efficiency ( minutes revised standard 1000 units actual time of minutes) stand. rate ( 25 per hour) 188A Fixed cost expenditure (Budgeted cost of Actual cost of ) 4840A Total variances 6851A Notes a revised standard contribution margin = 60 selling price revised variable cost ( /1000) = Reconciliation statement Original budgeted profit 7901 Less net variances as shown above 6851A Actual profit 1050 (d) If budgets and standards are set without considering the learning effect, meaningless standards are likely to be set that are easy to attain. Therefore favourable variances would be reported that are not due to operational efficiency. Where learning effects are expected, management should create an environment where improvements are expected. 194 COST ESTIMATION AND COST BEHAVIOUR
4 (a) (i) The learning curve is expressed as: yx ax b The exponent b is defined as the ratio of the logarithm of the learning curve improvement rate divided by the logarithm of 2. For an 80% learning curve: For an output of 14 units: b log 0.8/log y hours per unit Time taken for 14 units hrs Actual hours 240 It would therefore appear that an 80% learning effect is a reasonable assumption. (ii) For an output of 50 units: y hours per unit Hours required for 50 units: = hrs For an output of 30 units: y hours per unit Hours required for 30 units hours The time required for the additional 20 units hours ( ) (iii) Estimated cost for an order of 30 units Direct materials (30 30) Direct labour (401.4 hrs 6) Variable overhead (401.4 hrs 0.50) Fixed overhead ( ) a The above product cost has been calculated on an absorption costing basis in accordance with the current standard absorption costing system. Question Note a Fixed overhead for the period 6000 Direct labour hours for the period 1200 (75% 40 hrs 10 employees 4 weeks) Fixed overhead hourly rate 5 ( 6000/1200) Where the learning effect is present, unit product costs and labour hours will not be constant per unit of output. Significant variations in product costs and labour hours per unit of output are likely to occur at lower output levels. It is therefore necessary to estimate the extent of the learning effect for standard settings, budgeting and selling price quotations. Failure to take into account the presence of the learning effect can result in significant errors in cost estimates and planned labour requirements. If standards are not adjusted, they will cease to represent meaningful targets and lead to the reporting of erroneous favourable variances. (b) The statement refers to the fact that, with modern technology, there is a dramatic decrease in the direct labour content of most goods and services. Recent studies suggest that direct labour represents less than 10% of manufacturing cost and that COST ESTIMATION AND COST BEHAVIOUR 195
5 overheads are more closely related to machine hours than direct labour hours. With modern technology, output tends to be determined by machine speeds rather than changes in labour efficiency. Consequently, the presence of the learning effect as workers become more familiar with new operating procedures is of considerably less importance. The question implies that the learning curve is being replaced by an experience curve. The experience curve relates to the fact that output and efficiency are determined by manufacturing technologists such as engineers and production planners. As these groups of individuals gain experience from a range of applications of the new technology, efficiency improves and costs are minimized. It is therefore claimed that the experience curve has replaced the learning curve. However, the experience curve is extremely difficult to determine, and its impact is likely to take place over a much longer time period. It is therefore extremely difficult to capture the experience effect within short-term standard setting, budgeting and cost estimation activities. 196 COST ESTIMATION AND COST BEHAVIOUR
Paper 1. Question The accuracy of entries into staff records. (1) No person may make a false entry in a record maintained.
Paper 1 Question 1 1.1. The place and function of cost accounting. (8) Cost accounting is the process (1) to compile the cost of producing (1) a certain product, and this will include services and activities.
More informationDepartment of Management Accounting
MAC3701/201/2/2015 Tutorial Letter 201/2/2015 APPLICATION OF MANAGEMENT ACCOUNTING TECHNIQUES MAC3701 SEMESTER 2 Department of Management Accounting This tutorial letter contains important information
More informationBoth Isitya and Ikopi renders more net profit after further processing and should therefore be processed further.
OCT/NOV MAC2601 1.1 C Units purchased: 1 200 units Purchase price R6.80 Freight charges 0.68 Total 7.48 Value is therefore equal to 1200 units*7.48=r8 976 1.2 B 1.3 B 200 000 / 40 000 = R5 per machine
More informationPaper F5 ANSWERS TO EXAMPLES
September-December 2016 Examinations ACCA F5 87 Paper F5 ANSWERS TO EXAMPLES Chapter 1 ANSWER TO EXAMPLE 1 (a) Total overheads $190,000 Total labour hours A 20,000 2 = 40,000 B 25,000 1 = 25,000 C 2,000
More informationTRADITIONAL ABSORPTION V ACTIVITY BASED COSTING
TRADITIONAL ABSORPTION V ACTIVITY BASED COSTING A company manufactures two products: X and Y. Information is available as follows: (a) Product Total production Labour time per unit X 1,000 0.5 hours Y
More informationPaper F2. Management Accounting. Fundamentals Pilot Paper Knowledge module. The Association of Chartered Certified Accountants. Time allowed: 2 hours
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.
More informationRevision of management accounting
1 Revision of management accounting The following topics are covered in this chapter: Standard costing Flexible budgeting Absorption and marginal costing 1.1 STANDARD COSTING LEARNING SUMMARY After studying
More informationCHAPTER 11. Cost volume profit analysis for decision making CONTENTS
CHAPTER 11 Cost volume profit analysis for decision making CONTENTS 11.1 Cost behaviour analysis using high low method 11.2 Absorption costing versus direct costing 11.3 CVP analysis 11.4 Impact of change
More informationMANAGEMENT ACCOUNTING 2. Module Code: ACCT08004
School of Business & Enterprise Paisley & Hamilton Campus Session 015-016 Trimester 1 MANAGEMENT ACCOUNTING Module Code: ACCT08004 Date: 1st January 016 Time: 1400-1600 Answer THREE questions Question
More informationAnswer to MTP_Intermediate_ Syllabus 2012_December 2016_Set2. Paper 10- Cost & Management Accountancy
Paper 10- Cost & Management Accountancy Page 1 of 14 Paper 10- Cost & Management Accountancy Full Marks: 100 Time allowed: 3 Hours Section A 1. Answer Question No.1 which is compulsory carrying 5 Marks
More informationCIMA Professional Gateway Assessment
SPECIMEN Instructions to candidates CIMA Professional Gateway Assessment (CPGA) You are allowed three hours to answer this question paper. You are allowed 20 minutes reading time before the examination
More informationDO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO. Performance Pillar. P1 Performance Operations. 22 May 2013 Wednesday Morning Session
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO Performance Pillar P1 Performance Operations 22 May 2013 Wednesday Morning Session Instructions to candidates You are allowed three hours to
More informationManagement Accounting. Paper F2 Integrated Course Notes ACF2CN07(D)
Management Accounting Paper F2 Integrated Course Notes ACF2CN07(D) F2 Management Accounting (Computer Based Exam) Study Programme Page Introduction to the paper and the course... (ii) 1 Information for
More informationTutorial letter 201/2/2013
ACN306Y/201/2/2013 Tutorial letter 201/2/2013 MANAGEMENT ACCOUNTING TECHNIQUES AS AID IN DECISION-MAKING SEMESTE 2 Department of Management Accounting IMPOTANT INFOMATION: This tutorial letter contains
More informationPaper F2. Management Accounting. Pilot Paper from December 2011 onwards. Fundamentals Pilot Paper Knowledge Module
Fundamentals Pilot Paper Knowledge Module Management ccounting Pilot Paper from ecember 2011 onwards Time allowed: 2 hours LL 50 questions are compulsory and MUST be attempted. Formulae Sheet, Present
More informationPart 1 Examination Paper 1.2. Section A 10 C 11 C 2 A 13 C 1 B 15 C 6 C 17 B 18 C 9 D 20 C 21 C 22 D 23 D 24 C 25 C
Answers Part 1 Examination Paper 1.2 Financial Information for Management June 2007 Answers Section A 1 B 2 A 3 A 4 A 5 D 6 C 7 B 8 C 9 D 10 C 11 C 12 A 13 C 14 B 15 C 16 C 17 B 18 C 19 D 20 C 21 C 22
More informationDO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO. Performance Pillar. P1 Performance Operations. 21 November 2012 Wednesday Morning Session
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO Performance Pillar P1 Performance Operations 21 November 2012 Wednesday Morning Session Instructions to candidates You are allowed three hours
More informationP2 Decision Management
MANAGERIAL LEVEL MANAGEMENT ACCOUNTING PILLAR PAPER P2 MANAGEMENT ACCOUNTING DECISION MANAGEMENT This is a Pilot Paper and is intended to be an indicative guide for tutors and students of the style and
More informationPreparing and using budgets
Osborne Books Tutor Zone Preparing and using budgets Chapter activities Osborne Books Limited, 2013 2 p r e p a r i n g a n d u s i n g b u d g e t s t u t o r z o n e 1 The budgeting environment 1.1 Match
More informationLearning Curve Theory
7 Learning Curve Theory LEARNING OBJECTIVES : After studying this unit, you will be able to : l Understand, visualize and explain learning curve phenomenon. l Measure how in some industries and in some
More informationPaper F5. Performance Management. Monday 13 December Fundamentals Level Skills Module. The Association of Chartered Certified Accountants
Fundamentals Level Skills Module Performance Management Monday 13 December 2010 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Formulae
More informationSECTION I 14,000 14,200 19,170 10,000 8,000 10,400 12,400 9,600 8,400 11,200 13,600 18,320
QUESTION ONE SECTION I The following budget and actual results relates to Cypo Ltd. for the last three quarters for the year ended 31 March 200. Budget: Quarter 2 Quarter 3 Quarter to 30/9/2003 to 31/12/2003
More informationDO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO. Performance Pillar. P1 Performance Operations. 21 May 2014 Wednesday Morning Session
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO. Performance Pillar P1 Performance Operations 21 May 2014 Wednesday Morning Session Instructions to candidates You are allowed three hours to
More informationP1 Performance Evaluation
Management Accounting Pillar Managerial Level Paper P1 Management Accounting Performance Evaluation 24 November 2009 Tuesday Morning Session Instructions to candidates You are allowed three hours to answer
More informationFundamentals Level Skills Module, Paper F5
Answers Fundamentals Level Skills Module, Paper F5 Performance Management December 2009 Answers 1 (a) The total variances are as follows: Total price variance = ($5.25 $4)3,500kg = $4,375 Adverse Total
More information10,000 units x 24 = 240,000, or 5,000 hours x 48 = 240,000. the actual price of materials per kilogram
NVQ/SVQ Level 4 in Accounting Contributing to the Management of Performance and Enhancement of Value (PEV) (2003 standards) June 2006 SUGGESTED ANSWERS Note: The suggested answers may, in parts, be longer
More informationDO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO. Performance Pillar. P1 Performance Operations. 23 May 2012 Wednesday Morning Session
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO Performance Pillar P1 Performance Operations 23 May 2012 Wednesday Morning Session Instructions to candidates You are allowed three hours to
More informationVARIANCE ANALYSIS: ILLUSTRATION
VARIANCE ANALYSIS: ILLUSTRATION The following information relates to the production of product Alpha for the month of August Standard Cost Card Budgeted production overhead based on 10,000 units $ $ Selling
More informationMID TERM EXAMINATION Spring 2010 MGT402- Cost and Management Accounting (Session - 2) Time: 60 min Marks: 47
MID TERM EXAMINATION Spring 2010 MGT402- Cost and Management Accounting (Session - 2) Time: 60 min Marks: 47 Question No: 1 ( Marks: 1 ) - Please choose one Which of the following product cost is Included
More informationMock One. Performance Management F5PM-MK1-Z16-A. Answers & Marking Scheme. Becker Study School DeVry/Becker Educational Development Corp.
Mock One Performance Management F5PM-MK-Z6-A Answers & Marking Scheme 206 DeVry/Becker Educational Development Corp. Question Answer Mark Question Answer Mark Section A Section B D 6 A 2 C 7 A 3 C 8 A
More informationMultiplication of Polynomials
Multiplication of Polynomials In multiplying polynomials, we need to consider the following cases: Case 1: Monomial times Polynomial In this case, you can use the distributive property and laws of exponents
More informationWrite your answers in blue or black ink/ballpoint. Pencil may be used only for graphs, charts, diagrams, etc.
Series 4 Examination 2008 COST ACCOUNTING Level 3 Tuesday 11 November Subject Code: 3016 Time allowed: 3 hours INSTRUCTIONS FOR CANDIDATES Answer 5 questions. All questions carry equal marks. Write your
More informationArchana Khetan 05/09/ MAFA (CA Final) - Portfolio Management
Archana Khetan 05/09/2010 +91-9930812722 Archana090@hotmail.com MAFA (CA Final) - Portfolio Management 1 Portfolio Management Portfolio is a collection of assets. By investing in a portfolio or combination
More informationEngineering Economics and Financial Accounting
Engineering Economics and Financial Accounting Unit 4: Costing Major Topics are: Job Costing Operating Costing Process Costing Standard Costing (Variance Analysis) Gross Domestic Product (GDP) Job Costing
More informationICAN MI (COSTING) WEEK 1 TOPICS: INTRODUCTION TO COSTING SUGGESTED SOLUTIONS
KINDLY REFER TO CHAPTER 1 OF THE COMPREHENSIVE LECTURES TO READ UP THE TOPIC BEFORE YOU ATTEMPT THE QUESTIONS BELOW FOR PROPER UNDERSTANDING AS THE TOPIC HAS BEEN DISCUSSED IN THE SAID VIDEO LECTURES.
More informationYou were introduced to Standard Costing in the earlier stages of your studies in which you understood the following;
6 Standard Costing LEARNING OBJECTIVES : After studying this unit you will be able to : Understand terms as standard Cost, standard Costing, standard Hour Understand how a standard costing system operates
More informationstate the objectives of variance analysis understand the linkage between individual variances and the difference between budgeted and actual profit
1 INTRODUCTION In this lesson we explain the objective of analysis and provide a practical example of how the difference between budgeted and actual profit can be broken down into its constituent elements
More informationDO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO. Performance Pillar. P1 Performance Operations. Wednesday 27 August 2014
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO. Performance Pillar P1 Performance Operations Instructions to candidates Wednesday 27 August 2014 You are allowed three hours to answer this
More informationEXCEL PROFESSIONAL INSTITUTE. LECTURE 9 Holy & Winfred
EXCEL PROFESSIONAL INSTITUTE 1 LECTURE 9 Holy & Winfred 2 Q1. a) Investment Appraisal Lecture 10 &11 i. Types of Investment and Capital Expenditure ii. Objectives of Investment appraisal iii. Investment
More informationM1 - CIMA Masters Gateway Assessment (CMGA)
M1 - CIMA Masters Gateway Assessment (CMGA) 23 November 2010 Tuesday Afternoon Session Instructions to candidates You are allowed three hours to answer this question paper. You are allowed 20 minutes reading
More informationManagement Accounting. Pilot Paper 3 Questions and Suggested Solutions
Management Accounting Pilot Paper 3 Questions and Suggested Solutions NOTES TO USERS ABOUT PILOT PAPERS Pilot papers are published by Accounting Technicians Ireland. They are intended to provide guidance
More informationAnalysing financial performance
NEW for 2015 Osborne Books Tutor Zone Analysing financial performance Exam preparation exercises I n t r o d u c t i o n These questions have been written as practice for selected numerical tasks from
More informationAnswer to PTP_Intermediate_Syllabus 2012_Jun2014_Set 2
Paper 10: Cost & Management Accountancy Time Allowed: 3 Hours Full Marks: 100 Question.1 (a) QUESTION 1, which is compulsory. Attempt all of them. Section-A has three questions. Attempt any two of them.
More informationTool 1. Greatest Common Factor (GCF)
Chapter 7: Factoring Review Tool 1 Greatest Common Factor (GCF) This is a very important tool. You must try to factor out the GCF first in every problem. Some problems do not have a GCF but many do. When
More informationLU4: Accounting for Overhead
LU4: Accounting for Overhead Contents Introduction Applied manufacturing overheads Allocation of manufacturing overheads Learning objectives Define overhead costs Distinguish between manufacturing and
More informationTEACHING LESSON PLAN- B.Com (Regular) 4 th Semester
TEACHING LESSON PLAN- B.Com (Regular) 4 th Semester SUBJECT: C 5MC40: COST ACCOUNTING MODULE : BASIC CONCEPTS AND CLASSIFICATION SESSION/ HOURS REQUIRED) 5 Hrs Hours a) Meaning of Cost Accounting, Costing,
More informationManagement Accounting
Management Accounting Level 3 Model Answers Series 3 2008 (Code 3023) 1 ASE 3023 2 06 1 3023/2/06 >f0t@w9w2`?[i]bkbw5k# Management Accounting Level 3 Series 3 2008 How to use this booklet Model Answers
More informationPlasma TVs ,000 A LCD TVs ,500 A 21,500 A
Answers Fundamentals Level Skills Module, Paper F5 Performance Management December 2010 Answers 1 (a) (i) Sales price variance and sales volume variance Sales price variance = (actual price standard price)
More informationMANAGEMENT ACCOUNTING
SERIES 4 EXAMINATION 2004 MANAGEMENT ACCOUNTING LEVEL 3 (Code No: 3023) FRIDAY 19 NOVEMBER Instructions to Candidates (d) (e) (f) (g) The time allowed for this examination is 3 hours. Answer 5 questions.
More informationElements of costing (ELCO) Question and answer book
Elements of costing (ELCO) Question and answer book October 2018 AAT is a registered charity. No. 1050724 Questions Question 1 If the total cost of 3,000 units is 6,750 and the total cost of 3,900 units
More informationHistorical information collected from a research in relation to sales of a company are as follows. Year Cost of promotion Sales revenue
Question bank 05-SA- English Short Answer Questions Question 01 Activity based costing system is used to allocate fixed production overhead in a more representative manner. Explain following terms in relation
More informationWrite your answers in blue or black ink/ballpoint. Pencil may be used only for graphs, charts, diagrams, etc.
Series 3 Examination 2008 COST ACCOUNTING Level 3 Friday 6 June Subject Code: 3016 Time allowed: 3 hours INSTRUCTIONS FOR CANDIDATES Answer 5 questions. All questions carry equal marks. Write your answers
More information7.1 Assumptions: prices sticky in SR, but flex in MR, endogenous expectations
7 Lecture 7(I): Exchange rate overshooting - Dornbusch model Reference: Krugman-Obstfeld, p. 356-365 7.1 Assumptions: prices sticky in SR, but flex in MR, endogenous expectations Clearly it applies only
More information{List Sales (1 Trade Discount) Total Cost} (1 Tax Rate) = 0.06K
FINAL CA MAY 2018 ADVANCED MANAGEMENT ACCOUNTING Test Code F84 Branch: Date : 04.03.2018 (50 Marks) Note: All questions are compulsory. Question 1(4 Marks) (c) Selling Price to Yield 20% Return on Investment
More informationACCA Paper F5. Performance Management. Class Notes
ACCA Paper F5 Performance Management Class Notes December 2011 The Accountancy College Ltd, June 2011 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or
More informationPerformance Pillar. P1 Performance Operations. Wednesday 1 September 2010
Performance Pillar P1 Performance Operations Instructions to candidates Wednesday 1 September 2010 You are allowed three hours to answer this question paper. You are allowed 20 minutes reading time before
More informationDecember CS Executive Programme Module - I Paper - 2
December - 2015 CS Executive Programme Module - I Paper - 2 (New Syllabus) Cost and Management Accounting Total number of questions: 100 Maximum marks: 100 Assertion A: 1. In management accounting, firm
More informationPearson LCCI Level 3 Cost Accounting (ASE3017)
Pearson LCCI Level 3 Cost Accounting (ASE3017) Annual Qualification Review 2013/2014 For further information contact us: Tel. +44 (0) 247 6518951 Email. internationalenquiries@pearson.com www.lcci.org.uk,
More informationMANAGEMENT INFORMATION
CERTIFICATE LEVEL EXAMINATION SAMPLE PAPER 1 (90 MINUTES) MANAGEMENT INFORMATION This assessment consists of ONE scenario based question worth 20 marks and 32 short questions each worth 2.5 marks. At least
More informationChapter 9 Activity-Based Costing
Chapter 9 Activity-Based Costing SUMMARY This chapter deals with the allocation of indirect costs to products. Product cost information helps managers make numerous decisions, such as pricing, keeping
More informationP1 Performance Operations
Operational Level Paper P1 Performance Operations Examiner s Answers SECTION A Answer to Question One 1.1 The correct answer is B. 1.2 The minimum contribution at a selling price of $40 is $20,000 The
More informationMGT402 Cost & Management Accounting. Composed By Faheem Saqib MIDTERM EXAMINATION. Spring MGT402- Cost & Management Accounting (Session - 1)
MGT402 Cost & Management Accounting Composed By Faheem Saqib 14 Midterm Papers 3 of 2010 & 11 of 2009 For more Help Rep At Faheem_saqib2003@yahoo.com Faheem.saqib2003@gmail.com 0334-6034849 MIDTERM EXAMINATION
More informationMOCK TEST PAPER INTERMEDIATE (IPC): GROUP I PAPER 3: COST ACCOUNTING AND FINANCIAL MANAGEMENT
MOCK TEST PAPER INTERMEDIATE (IPC): GROUP I PAPER 3: COST ACCOUNTING AND FINANCIAL MANAGEMENT Test Series: March 2018 Answers are to be given only in English except in the case of the candidates who have
More informationP1 Performance Operations March 2014 examination
Operational Level Paper P1 Performance Operations 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
More informationACCA F2 FLASH NOTES. Describe a pie chart?
ACCA F2 FLASH NOTES Describe a pie chart? A pie chart is a circle that is divided into segments representing each type of observation. The size of each segment is proportional to the proportion of the
More informationDO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO. Performance Pillar. P1 Performance Operations. Tuesday 28 February 2012
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO Performance Pillar P1 Performance Operations Instructions to candidates Tuesday 28 February 2012 You are allowed three hours to answer this question
More information1.4. Arithmetic of Algebraic Fractions. Introduction. Prerequisites. Learning Outcomes
Arithmetic of Algebraic Fractions 1.4 Introduction Just as one whole number divided by another is called a numerical fraction, so one algebraic expression divided by another is known as an algebraic fraction.
More informationUNIVERSITY OF BOLTON BUSINESS SCHOOL ACCOUNTANCY SEMESTER 1 EXAMINATION 2015/2016 MANAGEMENT ACCOUNTING AND DECISION MAKING MODULE NO: ACC5002
BBS009 UNIVERSITY OF BOLTON BUSINESS SCHOOL ACCOUNTANCY SEMESTER 1 EXAMINATION 2015/2016 MANAGEMENT ACCOUNTING AND DECISION MAKING MODULE NO: ACC5002 Date: Tuesday 12 th January 2016 Time: 2:00pm to 5:00pm
More informationAFM481 - Advanced Cost Accounting Professor Grant Russell Final Exam Material Chapter 11 & 13. Chapter 11: Standard Costs and Variance Analysis
AFM481 - Advanced Cost Accounting Professor Grant Russell Final Exam Material Chapter 11 & 13 Chapter 11: Standard Costs and Variance Analysis Variance Analysis: calculating variances and investigating
More informationBudgets and Budgetary Control. By: CA Kapileshwar Bhalla
Budgets and Budgetary Control By: CA Kapileshwar Bhalla Learning Objectives Understand the objectives and importance of budgeting and budgetary control Understand the Advantages and disadvantages of budgetary
More information(AA22) COST ACCOUNTING AND REPORTING
All Rights Reserved ASSOCIATION OF ACCOUNTING TECHNICIANS OF SRI LANKA AA2 EXAMINATION - JANUARY 2017 (AA22) COST ACCOUNTING AND REPORTING Instructions to candidates (Please Read Carefully): (1) Time Allowed:
More informationFACULTY OF ECONOMIC AND MANAGEMENT SCIENCES DEPARTMENT FINANCIAL MANAGEMENT
FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES DEPARTMENT FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT 300 YEAR TEST Suggested solution 20 March 202 INTERNAL J E Klopper F Blom L Klopper EXTERNAL G J Plant 80
More informationChapter 11 BUDGETING. 1. Introduction. 2. Benefits of budgeting. 3. Principal budget factor
September-December 2016 Examinations ACCA F5 41 Chapter 11 BUDGETING 1. Introduction Budgeting is an essential tool for the management accounting in both planning and controlling future activity. In this
More informationTEACHING LESSON PLAN- B.Com (Regular) 4 th Semester
TEACHING LESSON PLAN- B.Com (Regular) 4 th Semester SUBJECT: C 5MC40: COST ACCOUNTING MODULE : BASIC CONCEPTS AND CLASSIFICATION 4 Hours a) Meaning of Cost Accounting, Costing, Cost Accountancy, Cost Management
More informationQUESTION BANK SIMPLE INTEREST
Chapter 5 Financial Mathematics I References r = rate of interest (annual usually) R = Regular period equal amount Also called equivalent annual cost P = Present value (or Principal) SI = Simple Interest
More informationEconometrics and Economic Data
Econometrics and Economic Data Chapter 1 What is a regression? By using the regression model, we can evaluate the magnitude of change in one variable due to a certain change in another variable. For example,
More informationTHE MOMBASA POLYTECHNIC UNIVERSITY COLLEGE
THE MOMBASA POLYTECHNIC UNIVERSITY COLLEGE Faculty of Business & Social Studies DEPARTMENT OF BUSINESS STUDIES BACHELOR OF BUSINESS ADMINISTRATION HBC 2117: COST ACCOUNTING BBA 2 ND YEAR 1 ST SEMESTER
More informationTHE PUBLIC ACCOUNTANTS EXAMINATION COUNCIL OF MALAWI 2014 EXAMINATIONS ACCOUNTING TECHNICIAN PROGRAMME PAPER TC9: COSTING AND BUDGETARY CONTROL
EXAMINATION NO. THE PUBLIC ACCOUNTANTS EXAMINATION COUNCIL OF MALAWI 2014 EXAMINATIONS ACCOUNTING TECHNICIAN PROGRAMME PAPER TC9: COSTING AND BUDGETARY CONTROL MONDAY 2 JUNE 2014 TIME ALLOWED: 3 HOURS
More informationCMA Students Newsletter (For Foundation Students)
Paper 1: Fundamentals of Economics and Management (FEM) INFLATION Generally when price level of an economy goes on rising continuously it is known as inflation. So the symptom of inflation is rising price
More informationPerformance Pillar. P1 Performance Operations. 25 May 2011 Wednesday Morning Session
Performance Pillar P1 Performance Operations 25 May 2011 Wednesday Morning Session Instructions to candidates You are allowed three hours to answer this question paper. You are allowed 20 minutes reading
More informationMANAGEMENT ACCOUNTING
Series 3 Examination 2008 MANAGEMENT ACCOUNTING Level 3 Monday 9 June Subject Code: 3023 Time allowed: 3 hours INSTRUCTIONS FOR CANDIDATES Answer 5 questions. All questions carry equal marks. Write your
More information-5y 4 10y 3 7y 2 y 5: where y = -3-5(-3) 4 10(-3) 3 7(-3) 2 (-3) 5: Simplify -5(81) 10(-27) 7(9) (-3) 5: Evaluate = -200
Polynomials: Objective Evaluate, add, subtract, multiply, and divide polynomials Definition: A Term is numbers or a product of numbers and/or variables. For example, 5x, 2y 2, -8, ab 4 c 2, etc. are all
More informationDisclaimer: This resource package is for studying purposes only EDUCATIO N
Disclaimer: This resource package is for studying purposes only EDUCATIO N Chapter 1 Managerial accounting vs. financial accounting Qualities Financial Accounting Managerial Accounting Reports Externally
More informationP2 Performance Management
Performance Pillar P2 Performance Management 24 November 2010 Wednesday Afternoon Session Instructions to candidates You are allowed three hours to answer this question paper. You are allowed 20 minutes
More informationDecision-making under conditions of risk and uncertainty
Decision-making under conditions of risk and uncertainty Solutions to Chapter 12 questions (a) Profit and Loss Statement for Period Ending 31 May 2000 Revenue (14 400 000 journeys): 0 3 miles (7 200 000
More informationMANAGEMENT INFORMATION
CERTIFICATE LEVEL EXAMINATION SAMPLE PAPER 3 (90 MINUTES) MANAGEMENT INFORMATION This assessment consists of ONE scenario based question worth 20 marks and 32 short questions each worth 2.5 marks. At least
More informationGlossary of Budgeting and Planning Terms
Budgeting Basics and Beyond, Third Edition By Jae K. Shim and Joel G. Siegel Copyright 2009 by John Wiley & Sons, Inc.. Glossary of Budgeting and Planning Terms Active Financial Planning Software Budgeting
More informationST. JOSEPH S COLLEGE OF COMMERCE
ST. JOSEPH S COLLEGE OF COMMERCE (AUTONOMOUS) LESSON PLAN 207-208 EVEN SEMESTER B.Com - Travel and Tourism C2 5 MC 40 Cost Accounting TEACHING LESSON PLAN- B.Com (Travel and Tourism) 4 th Semester SUBJECT:
More informationAnalysing financial performance
Osborne Books Tutor Zone Analysing financial performance Chapter activities Osborne Books Limited, 2013 2 a n a l y s i n g f i n a n c i a l p e r f o r m a n c e t u t o r z o n e 1 Management accounting
More informationPOD. Combine these like terms: 1) 3x 2 4x + 5x x 7x ) 7y 2 + 2y y + 5y 2. 3) 5x 4 + 2x x 7x 4 + 3x x
POD Combine these like terms: 1) 3x 2 4x + 5x 2 6 + 9x 7x 2 + 2 2) 7y 2 + 2y 3 + 2 4y + 5y 2 3) 5x 4 + 2x 5 5 10x 7x 4 + 3x 5 12 + 2x 1 Definitions! Monomial: a single term ex: 4x Binomial: two terms separated
More informationUnit 8: Polynomials Chapter Test. Part 1: Identify each of the following as: Monomial, binomial, or trinomial. Then give the degree of each.
Unit 8: Polynomials Chapter Test Part 1: Identify each of the following as: Monomial, binomial, or trinomial. Then give the degree of each. 1. 9x 2 2 2. 3 3. 2x 2 + 3x + 1 4. 9y -1 Part 2: Simplify each
More information5.6 Special Products of Polynomials
5.6 Special Products of Polynomials Learning Objectives Find the square of a binomial Find the product of binomials using sum and difference formula Solve problems using special products of polynomials
More informationBreak-even even & Leverage Analysis
Break-even even & Leverage Analysis Timothy R. Mayes, Ph.D. FIN 330: Chapter 12 1 Types of Costs Essentially, there are two types of costs that a business faces: Variable costs which vary proportionally
More informationTotal number of machine hours expected to be utilised = 0,75 x =
COSTING LECTURE EXAMPLE SUGGESTED SOLUTIONS COST ASSIGNMENT LE1: Allocation rate based on units Overhead allocation rate = R960 000 / 120 000 = R8,00 per unit Total amount absorbed in WIP = R8,00 x 100
More informationA Course in Macroeconomics Introduction to Key Macroeconomic Variables David Prescott, University of Guelph, Ontario, Canada
A Course in Macroeconomics Introduction to Key Macroeconomic Variables David Prescott, University of Guelph, Ontario, Canada An Introduction to Essential Macroeconomic Variables Macroeconomics is the study
More informationP2 Performance Management
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO Performance Pillar P2 Performance Management Instructions to candidates Thursday 30 August 2012 You are allowed three hours to answer this question
More informationManagement Accounting
>f0t@wjy2[2`5k2[2h# Management Accounting Level 3 Series 2 2003 (Code 3023) Model Answers ASP M 1445 Management Accounting Level 3 Series 2 2003 How to use this booklet Model Answers have been developed
More informationP1 Performance Operations
Operational Level Paper P1 Performance Operations Examiner s Answers SECTION A Answer to Question One 1.1 The correct answer is D. 1.2 The maximum regret at a selling price of 40 is 20,000 The maximum
More informationAnswers A, B and C are all symptoms of overtrading whereas answer D is not as it deals with long term financing issues.
SECTION A 20 MARKS Question One 1.1 The answer is D Overtrading occurs when a company has inadequate finance for working capital to support its level of trading. The company is growing rapidly and is trying
More informationPaper P1 Management Accounting Performance Evaluation Post Exam Guide November 2008 Exam. General Comments
General Comments The overall result on this paper was reasonable and, while performance was well below the level seen in May 2008, there was a small improvement on the previous November sitting. gained
More information