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STUDY GUIDE
January 2017
1
Author: Dr. Ming Yen Tan (Jan 2017)
This manual was prepared for University College Dublin as a comprehensive support for
students completing the above mentioned Degree programme.
This publication may not be reproduced, in whole or in part without permission from
University College Dublin.
Office: 86-755-82680031
Email: mingyentan@gmail.com
2
TABLE OF CONTENTS
PAGE
WELCOME MESSAGE 4
1. INTRODUCTION 5
a. Background details
b. Module aims
c. Programme goals
2. MODULE OUTLINE 8
a. Module learning outcomes
b. Themes and topics
c. Learning materials
4. ASSESSMENT DETAILS 13
a. Assignments
b. Module assessment components
i. Assignment 1 Individual assignment
ii. Assignment 2 Group project
iii. Assignment 3 Examination
5. GRADING 19
a. University grading policy
b. Grade descriptors for assessment components
6. CONCLUDING COMMENTS 23
APPENDICES 24
3
WELCOME MESSAGE
As co-ordinator of the Financial & Management Accounting module, I wish to welcome you to
the module.
To operate effectively within the Global Business World, an understanding of the theory and
practice of Accounting is essential. This module is designed to deepen your interest and
expertise in the area of Accounting and the Study Guide is designed to support your
learning.
While much of the focus is on knowledge acquisition, attention is also given to enhancing
and developing your professional and personal skills and competencies. To successfully
complete this module, several learning activities (individual and group) are to be completed
(prior to, and during the bloc sessions) which should provide enjoyment and fun, and also
facilitate the attainment of the module learning outcomes.
Should you require clarification on any matter pertaining to the module, please do not
hesitate to contact me.
Module coordinator
4
PART 1: INTRODUCTION
This Study Guide is designed to provide you with details of this module, the learning
outcomes, delivery and assessment arrangements. The Study Guide consists of 6 parts.
Part 1 gives background details to the subject area are provided and the broad aims of the
module are set out.
Part 2 consists of the module outline. In this part the (a) module learning outcomes, (b) the
themes and topics to be explored are explained along with the (c) learning supports to be
used.
Part 3 gives details of the module delivery arrangements. It sets out the session
arrangements and the expectations in relation to your prior preparation and student
engagement.
Part 4 provides details of the assessment techniques used in this module explaining the
assessment components, their rationale.
Part 5 explains the UCD grading policy and grade descriptors drawing on the university
document are given for each assessment component (i) Assignment 1 and (ii) Examination
(closed book).
a. Background Details
The aim of this module is to give students an introduction to the financial accounting
environment in which organisations operate, including the preparation of financial statements
and financial statement analysis. Students will understand/appreciate the information needs
of managers and the strategic role of management accounting information
b. Module Aims
On completing this module students will be expected to be able to explain the factors which
impact on the financial accounting environment, the purpose of financial accounting describe
the primary uses and basic concepts of financial accounting information and undertake basic
analysis of the performance and financial position of an organisation from its financial
statements. Understand/appreciate the information needs of managers and the strategic role
of management accounting information; Identify and use cost information for product/service
costing, control and decision-making purposes; Apply decision-making concepts to a variety
of business situations.
5
Programme Goals
6
professional career
pathways.
Global, Multicultural Identify the main factors and variables that Assignment 2
and Diversity influence multinational entities business short question
Perspectives operations, planning and competitive
Examination
positioning.
Our graduates will Short Essay
understand the Question
impact of culture and
social developments Recognize ethical and social responsibility
on business issues in the business environment and know
management how to apply a process of ethical inquiry.
decisions.
7
PART 2: MODULE OUTLINE
No. of ECTS: 10
Type Hours
Specified Learning Activities 85
Lectures 30
Autonomous Student Learning 125
Total 240
Students completing the Financial & Management Accounting module are expected to
participate in session discussions and learning activities and be familiar with recent
developments in the business world.
8
Interpretation of Financial Identify the major categories of ratios that are used for
Statements analysis purposes.
Cost Volume Profit Use the marginal cost equation to solve problems.
Analysis
Understand break-even charts. Calculate point where
target profit is made.
Activity Based Costing Explain the reasons for and basis of Activity Based
(ABC) Costing.
Module Text:
Accounting An Introduction: by Eddie McLaney & Peter Atrill 6th edition. (FT-Prentice-Hall,
2012).
9
c. Learning Materials
For this module, please read the assigned chapters in the prescribed text and the additional
readings assigned (see list below).
Chapter 1-16
Exercises.
Students completing this module are expected to participate in session discussions and
learning activities and be familiar with recent developments in the business world. To
facilitate this, the following source material is useful
The Economist
The Wall Street Journal
The South China Morning Post
The Financial Times
Business Week
Fortune
10
PART 3: MODULE DELIVERY SCHEDULE
The module delivery relies on students ability to engage in prior preparation, to seek
confirmation and clarification as appropriate and to be actively engaged during the sessions.
a. Session Arrangements
Each student is expected to attend and be prepared for all sessions. The tables below
outline the structure for the session for each of the groups. Exercise and case studies will be
given in class.
9:00am to 12:30pm
1 Introduction to Accounting 6 Jan 2017 Fri
1:30pm to 5:30pm
9:00am to 12:30pm
1 Introduction to Accounting 12 Jan 2017 Thu
1:30pm to 5:30pm
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Group 3: Module Delivery Schedule
9:00am to 12:30pm
1 Introduction to Accounting 19 Jan 2017 Thu
1:30pm to 5:30pm
In addition to Assignment 1, you are expected to have read the above topics in advance of
meeting the module coordinator / course lecturer at the seminars. Students are expected to
be fully familiar with them. These readings are an important learning source and supplement
the session and text materials.
b. Student Engagement
During the sessions, students are expected to be able to discuss issues arising from the
assigned chapters and readings for the topics as scheduled above.
Session participation is a vital element in the design of this module. Therefore, all students
are expected to engage in class discussion and debate in order to facilitate the formation of
their critical judgements.
To support your learning, Power-Point slides will be available which may need to be
upgraded / modified during or following the sessions depending on the issues raised.
c. Office Hours
I will be available from 30 minute before the start of every class. Please arrange with me in
advance should you wish to meet me individually to discuss any aspect of this module.
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PART 4: ASSESSMENT DETAILS
Students are expected to complete all assignments ensuring that they are submitted by the
specified date. All submissions must be typed, be well laid out, written in an academic style
with appropriate headings (introduction, main part and concluding comments) and sections.
Please ensure that all submissions are entirely your own work for UCDs policy on
plagiarism click on the link http://www.ucd.ie/registry/academicsecretariat/plag_pol_proc.pdf
Students are expected to complete all assignments ensuring that they are submitted by the
specified date. The weighting assigned for each component is shown in Table 2 below. (* I =
Individual; G = Group)
1
Biggs, J. and Tang, C. 2009, Teaching for Quality Learning at University, Maidenhead: Open
University/McGraw Hill.
2
As the Overseas Programme modules are worth 10 ECTS they should be graded out of 200 marks.
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In the following pages, further details of each assessment component are presented along
with expectations in relation to prior preparation and completion.
To support student learning, provide detailed grade descriptors for their submission
indicate what standards need to be met for a student to get an A, B, C, D, E, F, G or NG
grade are listed in Table 3: UCD Grading System.
Answer both Question 1 and Question 2. Maximum words count for Assignment 1 is
800 words.
Please read the Grade Descriptors in Assignment 1 Grade Descriptor Table in Table 4.
Assignment 1
Explain the strengths and weaknesses of these kinds of business ownership: sole
proprietorship, partnership and limited company.
(End)
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(ii) Assignment 2: Group Project
Assignment 2 is aimed to enhance students understanding on the board concepts and
theories of financial and management accounting and their application in business decision
making. Both quantitative questions and qualitative questions are set to assess students
capacity in correct calculation and critical discussion on the use of the calculated results for
decision making purpose.
Answer both Question 1 and Question 2. Maximum words count for Assignment 2 is
1,500 words.
As this is a group assignment, all members of the group will receive the same mark for the
written submission of the project. However, all members are also required to submit an
individual paper recording their contribution to group project. These individual papers should
include reflections and experiences of working on the project within the group context.
Reflections should include such elements as how the project contributed to the students
overall learning on the module, how the group worked together, limitations within the activity,
etc.
You should also complete the Team Agreement Form which can be found in the Orientation
folder on the Programme Area on Blackboard and is also included in the appendices at the
end of this study guide. Please refer to Appendix 2.
Please read the Grade Descriptors in Assignment 2 Grade Descriptor Table in Table 5.
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Assignment 2 Deadline 3rd March 2017
Best Ltd, an advertising agency, is considering a purchase of new equipment at the end of
November. The investment has been budgeted at 250,000. The management needs to
evaluate how much cash will be available at the end of the year, so that they can decide how
to finance new investment.
2. Sales in July were 220,000 and they increasing of 10% on monthly basis.
3. 70% of sales is collected in cash, the remaining 30% is collected with two months credit.
4. Monthly purchases are 60% of the previous month sales. All purchases are on credit basis
and are paid in first month after purchase.
5. Wages and commission are paid each month. Wages are fixed amount of 12,000 and
commission is 7% of previous month sales.
7. The company has set up a standing order to pay the rent and council tax. The payments
will start in January and the amount is 12,000 every two months.
8. Telephone, heating and electricity bills to pay are estimated to be 17,000 every month.
9. The depreciation charge for the companies fixed assets is 13,000 per month.
10. A loan of 150,000 has been taken in January 2016. The interest rate is 10% p.a. Best
Ltd, is repaying the interest on the loan on bi-monthly basis, starting from February 2016.
12. The minimum amount of cash the company needs to retain at the end of each month is
20,000.
Required:
(a) Prepare a report that presents the company cash position over the period of September
2016 to November 2016. Based on your findings advice Best Ltd td on possibility of
financing purchase of new equipment.
(30 marks)
(b) In the future Best Ltd is considering using one of the two approaches: top down budget
and bottom up budgets. Write a statement critically discussing the use of each of those
two types of budget. Explain advantages and disadvantages of each approach.
(20 marks)
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Question 2 (50 marks)
Super Automotive is a small automotive engineering company that produces a single product
called the Wonderful, which is used as an alternative to the standard alternator in cars and
vans. The summarized profit and loss account for the year ended 31st December 2016 is
shown below:
Sales (30,000 600,000
units)
Direct materials 60,000
Direct labour 120,000
Variable overheads 90,000
Fixed overheads 110,000 (380,000)
Profit 220,000
Required:
(v) The number of units required to produce a profit of 159,000, assuming the
selling price, variable cost per unit and the fixed costs were to remain the same.
(2 marks)
(b) Draw the breakeven graph. Make sure to label the graph correctly. (Note: Please draw
the graph accurately and legibly. Marks are awarded for accuracy. (10 marks)
(c) The management evaluate a proposal of reducing the selling price by 10% this will cause
sales to rise by 3,000 units. Calculate the new breakeven point. (10 marks)
(d) Explain to somebody who has no background in accounting what the breakeven point is,
what are its benefits and drawbacks and demonstrate why everything sold after the
breakeven point is actually profit to the company. (20 marks)
(End)
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(iii) Assignment 3: Examination:
The examination (3 hours) and it will take place on Saturday the 18th March 2017. It will
focus on module themes and the material covered in the text, cases, assigned readings and
class discussions. For this, students are expected to demonstrate their understanding of
theory and practice addressed throughout the module. The examination question format will
be designed to allow you show your understanding of the topics discussed and also reveal
your learning (new and prior). More specific guidelines regarding the examination paper
format and questions will be provided during the final session.
The examination paper has three sections. Students are required to answer all the three
sections according to the following format:
Short questions are developed which require students to make correct calculations using
various financial accounting and management accounting methods as described in the
module outline. Students will have the opportunity to ask questions about its design and style
and be advised the type of answers expected.
Please read the Grade Descriptors in Assignment 3 Grade Descriptor Table in Table 6.
A recent past examination paper is included in Appendix of this Study Guide, please
noted and prepared for the different style of examination format and questions. The
purpose of the past examination paper is to specific the level of the type of questions
asked in the examination. No solution to be provided.
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PART 5: GRADING
This section of the Study Guide provides students with details of the UCD grading system
and also explains criterion referenced grading (UCD Policy). Under criterion referenced
grading, students are graded on the quality of their work without reference to other students
(norm referenced). For instance, the submission that meets the required guidelines in terms
of writing style, analysis, description and / or summary will be awarded according to the
standards set out. All students work is graded to indicate the standard attained using the
criterion referenced approach.
A+ 4.2
A Excellent 4.0
A- 3.8
B+ 3.6
B- 3.2
C+ 3.0
C Good 2.8
C- 2.6
D+ 2.4
D Acceptable 2.2
D- 2.0
E Marginal 1.6
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More specific grade descriptors are set out for your assessment components in the following
pages. Table 4 below provides descriptors for Assignment 1 please read them prior to
submitting your work.
Grade Criteria
A comprehensive, highly-structured, focused and concise response to the
A assessment task, consistently demonstrating:
D shows a basic grasp of subject matter but may be poorly focussed or badly
structured or contain irrelevant material
has one major error and some minor errors
demonstrates the capacity to complete only moderately difficult tasks related to
the subject material
Inadequate and incompetent response to the assessment task, demonstrating:
While the criteria detailed above refer to A D grades (inclusive) only, please note that all bands will
be used (A+, A and A-; B+, B and B- etc) for grading assignments.
20
TABLE 5: Grade Descriptors Assignment 2 (Group Project)
Grade Criteria
While the criteria detailed above refer to A D grades (inclusive) only, please note that all bands will
be used (A+, A and A-; B+, B and B- etc) for grading assignments.
21
TABLE 6: Grade Descriptors Assignment 3 (Formal Closed Book Examination)
Grade Criteria
While the criteria detailed above refer to A D grades (inclusive) only, please note that all bands will
be used (A+, A and A-; B+, B and B- etc) for grading assignments.
22
PART 6: CONCLUDING COMMENTS
This Study Guide is designed to assist and guide your learning for this module. It is important
that you read it regularly and do so in conjunction with the core text, the assigned readings
and session materials. Should you need clarification on issues covered, please let me know
during the seminar sessions.
I hope you enjoy the module and wish you good luck with the rest of your study and for the
future.
January 2017
23
APPENDIX 1
There are many reasons for using group work in higher education such as enhancing student
learning, promoting social interaction among students, developing generic skills (including
negotiation, delegation and leadership) and the individual students strengths and expertise.
There is an onus on the group to ensure that individual members provide maximum effort in
completing the assigned task/project. There is evidence to suggest that individuals frequently
exert less effort on collective tasks than on individual tasks (Williams and Karau, 1991)4. As
the group size increases the Ringlemann Effect emerges: there can be an inverse
relationship between the size of the group and effort expended. It is fair to assume that
group effectiveness will increase when members work on tasks that are mutually important
and when each member believes they are contributing to an end goal.
UCD School of Business personnel are obliged to ensure that the operation and
management of assigned group-work are consistent with the integrity of the university
assessment process. It is also expected that, where the group-work contributes to a module
grade, members are awarded grades that accurately reflect their contribution to the
completion of the task.
This Code of Practice is developed to guide the work of student groups within an academic
setting and safeguard the integrity of group-based projects as part of our assessment of
student learning outcomes.
1. All Group members (whether assigned or self selected) are expected to contribute
actively and equitably to the completion of the exercise/project.
2. All groups will set out and agree basic ground rules for their group in terms of group
communication procedures, performance targets, arranging and organizing meetings,
records, progress reports, solving problems, finalizing the project and signing off.
3. Roles (such as leader, convener or facilitator) might be assigned to particular group
members to facilitate the working of the group and specific milestones (weekly) agreed.
4. Group membership diversity (cultural, professional etc.) needs to be acknowledged,
valued and utilized as appropriate.
3
Members of the School of Business Teaching and Learning Committee contributed to the
development of this protocol.
4
Williams, K.D., & Karau, S. J. (1991). Social loafing and social compensation: The effects of
expectations of co-worker performance. Journal of Personality and Social Psychology, 61(4), 570-581.
24
5. Group work undertaken by UCD School of Business students is subject to UCD policy on
academic programmes. For further details on this policy go to
http://www.ucd.ie/registry/academicsecretariat/student_code.pdf
6. UCD promotes an environment upholding the dignity and respect of all students as set
out in its policy on Dignity and Respect
University College Dublin is committed to the promotion of an environment for work
and study which upholds the dignity and respect of the individual and which supports
every individuals right to study and/or work in an environment which is free of any
form of harassment, intimidation or bullying.
The university recognizes the right of every individual to such an environment and
requires all members of the University community to recognize their responsibilities in
this regard.
http://www.ucd.ie/equality/policieslegislation/dignity_respect_policy.pdf
7. Any group member who is concerned about a members contribution to the group work
(and associated activities) must firstly communicate this (at the earliest time possible) to
the group members, and they must strive to resolve the problem.
8. If a group member believes that his/her concerns have not been addressed satisfactorily
within the group, the matter should be brought to the attention of the module coordinator.
The module coordinator/learning support officer (LSO) should strive to resolve the issue
at group level. Where this has not been achieved, the Academic Coordinator and/or the
School Head of Teaching and Learning will be informed.
9. Should the issues not be resolved, the parties above, taking into consideration the
stipulations of this code and the University policy documents to which it refers, will to
seek to mediate to find a solution, which is acceptable to group members and which
retains the integrity of the group work assessment process.
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APPENDIX 2: TEAM AGREEMENT FORM
MOBILE EMAIL
1
2
3
4
5
INFORMAL COMMUNICATION
We have decided
1)
2)
3)
MEETINGS
We have decided
1)
2)
3)
MAKING DECISIONS
We have agreed
1)
2)
3)
4)
5)
SANCTIONS
We hope to work in harmony together. We have different strengths. We accept that this is a group
piece of work and we are all responsible for doing our best. However we agree now that
If individuals have difficulties in working with the team or on the task, we will try to sort
them out promptly by talking with each other
We will seek advice - as soon as is possible - from our tutor for those serious problems which
we cannot resolve ourselves.
SIGNED
26
APPENDIX 3: 2 Important Documents
You are advised to read the following important documents before you commence your
studies on this module:
www.ucd.ie/registry/academicsecretariat/late_sub.pdf
27
APPENDIX 4 Past Examination Paper - Note to Students: Providing a copy of
this paper does not signify that future papers will follow the exact same format.
ACC2002L
28
Section A Multiple Choice Questions (Total: 50 marks)
A. 1,984.
B. 3,100.
C. 2,480.
D. 2,232.
2. In September 2015 Alice paid 15,600 for rent for the four months from
1 October 2015. What should be reported on Alices balance sheet at
30 November 2015?
A. An accrual of 7,800.
B. A prepayment of 7,800.
C. An accrual of 3,900.
D. A prepayment of 3,900.
A. Prepayment
B. Accrual
C. Cash at bank balance
D. Closing balance of inventory
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5. A business borrowed 6,800 from its bank, and used the cash to buy a new
computer. How is the accounting equation affected by these transactions?
Assets Liabilities
A. Unchanged Decreased
B. Unchanged Increased
C. Increased Increased
D. Increased Decreased
A. Nil
B. (3,000)
C. (5,000)
D. 3,000
7. The accountant for the golf club shop has valued the shop inventory at the end
of the year as being 10,000. The accounting records show the following
amounts for the year from the books:
Purchases 84,000
Goods returned to 2,000
suppliers
Inventory at the beginning 16,000
The mark up on cost is 100%. What are the sales for the year?
A. 122,000
B. 156,000
C. 150,000
D. 176,000
A. A summary of the cash inflows and out flows of the organisation during a
particular period.
B. The trading performance of the organisation from a particular period.
C. The financial position of the organisation at a particular point in time.
D. The reconciliation of the balance per the bank statement with the
companys own records
30
Information common to Question 9 and Question 10:
Sales 120,000
Rent expense 8,000
Interest expense 1,600
Cost of sales 64,000
Trade receivables 24,000
Salaries expense 16,000
Advertising expense 4,000
Office supplies expense 4,000
Corporation tax expense 2,960
A. 40,000
B. 24,000
C. 22,400
D. 19,440
12. The most likely strategy to reduce the breakeven point, would be to
31
D. The total direct costs of manufacturing a product.
14. Bravo Limited is a single product company and the following information is
provided:
Selling price (unit) 20
Expected sales 5,000 units sold
Variable cost (unit) 12
Fixed costs (total) 25,000
What is the companys margin of safety percentage for the budget period?
A. 62.6%
B. 37.5%
C. 28.5%
D. 27.5%
15. Of the four costs shown below, which would NOT be included in the cash
budget of an insurance firm?
A. Credit sales
B. Interest received
C. Cash from customers for goods
D. Cash from sale of fixed assets
A. Bad debts.
B. Straight-line depreciation of equipment in the mixing process.
C. Labour costs of supervisory personnel.
D. Labour costs of workers working at the production line.
Based on the data given above, what is the predetermined labour hour
overhead absorption rate?
32
A. 18.76 per hour
B. 18.44 per hour
C. 17.50 per hour
D. 17.20 per hour
19. A Manufacturing Company predicted the following figures for the year starting
1 January 2015:
Department A Department B
Production overhead 36,000 32,000
Direct labour (hours) 20,000 16,000
Hours of machine time 10,000 10,000
Department A Department B
Direct labour hours worked 150 160
Hours of machine time taken 75 80
The total overhead to be assigned (for both departments) to Job 101, based on
the above information is:
A. 270
B. 320
C. 590
D. 1,116
21. Which of the following is most likely to be a variable cost, where the cost driver
is the number of units produced?
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D. Straight line depreciation of equipment in the factory which produces the
new product.
22. When administered intelligently, budgets should:
A. Airline companies
B. Hospitals
C. Financial institutions
D. All of the above.
High Low
Cost per month 39,200 32,000
Machine hours 24,000 15,000
24. Using the high-low method of analysis, the estimated variable cost per machine
hour is:
A. 1.25
B. 12.50
C. 0.80
D. 0.08
25. Using the high-low technique, the estimated monthly fixed costs for
maintenance expenditure are:
A. 240,000
B. 20,000
C. 12,000
D. 19,200
34
Section B Financial Accounting
Answer ONE question only from this section. All questions carry equal marks.
Required:
(a) Prepare an Income Statement for the year ended 31 December 2015.
(12 marks)
35
(b) Prepare a Balance Sheet as at the 31 December 2015.
(13 marks)
(Total: 25 marks)
Question 2 (Total: 25 marks)
Apple Limited and Orange Limited are two companies that are similar in size and in
the same industry. The summarised final accounts of the two companies are as
follows:
Current Assets
Inventories 1,800 1,760
Trade debtors 1,200 880
Bank 600 3,600 - 2,640
Current Liabilities
Trade creditors 1,000 1,144
Bank overdraft - 1,000 1,276 2,420
2,600 220
Financed by:
Ordinary shares of 1 each, fully
3,000 2,200
paid
Retained Earnings 2,000 220
5,000 2,420
Trading and profit and loss for the year ended 30 June 2015
Apple Ltd Orange Ltd
'000 '000
Sales 6,500 5,500
Less: Cost of goods sold 5,150 4,840
Gross Profit 1,350 660
Operating expenses 950 880
Profit (Loss) for the year 400 (220)
Note: Purchases for the year ended 30 June 2015 are as follow:
Required
(a) Calculate to two decimal places the following ratios for Apple Limited and
Orange Limited for the year 2015:
(b) Write a brief comment on the financial performance of the two companies in
terms of profitability.
(4 marks)
(c) Write a brief comment on the financial position of the two companies in terms of
short-term liquidity.
(4 marks)
(Total: 25 marks)
37
Section C Management Accounting
Answer ONE question only from this section. All questions carry equal marks.
Marketing costs:
Variable 162 per kilogram
Fixed 960,000 per year
It is estimated that the company can sell all its output for the coming year at 1,500
per kilogram of material processed. Assume there is no loss or gain during the
processing of material.
Required:
(a) What is the contribution margin for Brown Manufacturing Limited? (2 marks)
(b) What is the break-even point (in revenue) for Brown Manufacturing Limited?
(3 marks)
(c) How many units does Brown Manufacturing Limited need to sell if the
company wants a profit of 1,797,600?
(3 marks)
(d) What is the maximum amount that Brown Manufacturing Limited can afford to
pay per kilogram of material and still break-even and selling only 120,000
kilogram of material during the current year? (5 marks)
(e) List THREE reasons to explain why break-even analysis can be a really useful
management tool. (6 marks)
38
(Total: 25 marks)
Indirect production overheads that are not driven by production volume are:
Item Cost Driver
Set-up costs Production runs
Materials handling Deliveries of materials
Packing Deliveries to customers
Engineering Production orders
Required:
(a) Calculate the full production cost per unit of Product C if overheads were
absorbed on the basis of direct labour hours.
(4 marks)
(b) Calculate the full production cost per unit of Product C using activity-based
costing and the cost drivers described above, with overheads that are driven by
production volume allocated on a machine hour basis.
(10 marks)
(c) Comment briefly on any conclusions which may be drawn from (a) and (b) above,
which could have pricing and profit implications. (5 marks)
39
(d) Describe THREE benefits which might results from introducing ABC system.
(6 marks)
(Total: 25 marks)
oOo
40