# 辅导 6012ACC Management Accounting for Business Decisions April 2022辅导 数据结构程序

6012ACC

April 2022

SECTION A  -  You must answer this Compulsory Question from this section.

Question 1

The Ball-Hill Cobblers Ltd deals in the manufacturing of keys. The company provides the following information relating to the possible capital expenditure on the procurement of Key engraving machine and Key repair machine. However, due to capital rationing of the company only one machine can be accepted. The cost of capital is  15%.The table  below shows the important information you will need.

 Key              Engraving Machine Key Repair Machine Initial cost £240,000 £276,000 Expected life of the machine 5years 5years Residual value £12,000 £18,000 Expected annual cash flows at the year end 1 £96,000 £120,000 2 £84,000 £84,000 3 £78,000 £60,000 4 £72,000 £60,000 5 £66,000 £60,000

Calculate:

1. (a) (i) The payback period for each project;                               (6 marks)

(ii) the accounting rate of return for each project;                     (8 marks)

(iii) the net present value of each project;                                 (8 marks)

(b) Critically discuss which project should be accepted-

(maximum of 5 points) (not bullet point) (Word count 250). (10 marks)

(c) Critically discuss the terms compounding and discounting (word count 250) (8marks)

Total     (40marks)

SECTION B - You must answer any TWO questions from this section. Each question is worth 30 marks

Question 2

Oakland is into trading selling of gift cards. The following budgeted and actual contribution statement is for a component sold by Oakland Plc. This transaction is for the month of August 2020:

 Actual Budget Unit sales 18,900 21,000 Unit selling price £ 3.89 £ 4.20 Sales revenue £ 69,930 £ 84,000 Cost of goods sold £ 37,800 £ 42,000 Gross profit £ 32,130 £ 42,000 Operating costs (all fixed) £ 21,000 £ 25,200 contribution to corporate costs and profits £ 11,130 £ 16,800

Required:

a).Compute:

i). the sales price variance,                                                            (2marks)

ii) the net sales volume variance, and                                           (2marks)

iii) the cost of goods sold variance                                                 (2marks)

iv) the operating cost variance for the month of August 2020.      (2marks)

Total (8marks)

b). Use the calculations in part a. to reconcile the budgeted and actual contribution to corporate costs and profits.     (6marks)

c. How would you evaluate the performance of Oakland Plc's manager? (2marks for each point, maximum 2 points) (Word count 120).                   (4marks)

d. How would you explain your understanding of the benefits of budgetary controls to a friend of yours. (Maximum of 4 points, 3marks to each) (Word count 200) (12marks)

Total (30marks)

Question 3

The Coventry City Leisure World provides leisure services to the general public. The management is contemplating extending the services  to Birmingham City. The estimated fixed costs are £80,000.The variable costs is to be £15 per ticket sold. The proposed price for the sale of a ticket is £30. The management of The Coventry City Leisure world has requested that as a newly employed accountant to:

Calculate:

a). (i). The number of tickets that must be sold to break even.                 (2marks)

(ii). How many tickets must be sold to earn £40,000 target profit?           (2marks)

(iii). What profit would result if 9,000 tickets were sold?                            (2marks)

(iv). What selling price would have to be charged to give a profit of £40,000 on sales of 9,000 tickets, fixed costs of £80,000 and variable costs of £15 per ticket?                    (2marks)

(b). Compare and contrast between Absorption costing system and activity based system (maximum of 5points, 2marks for each point)(Word count 200). (20marks)

Total (30marks)

Question 4

Waitmore Manufacturing Company, dealing in the production of plastic products. It has two divisions, Wait and More. Division Wait prepares the plastic products for processing, Division more on the other hand processes the plastic products into the final stage of the product. However, during the 2020 financial year, Wait Division prepared 95,000 kgs of plastic at a cost of £670,000. All the plastic product was transferred to More Division where additional operating costs of £8 per kg were incurred. The final product was sold for £4,000,000.

Required:

a. Calculate the gross profit for each division and for the company as a whole if the transfer price is £15 per kg.   (6 marks)

b. Calculate the gross profit for each division and for the company as a whole if the transfer price is £20 per kg.     (6 marks)

c. What are the probable challenges of international transfer pricing known to you? Discuss three of them.    (6marks)

d). Discuss the four alternative ways in which transfer prices can be set and describe how each of these is determined. (Words count 600)                    (12 marks)

Total (30marks)