HND财政预算答案.docx
《HND财政预算答案.docx》由会员分享，可在线阅读，更多相关《HND财政预算答案.docx（8页珍藏版）》请在冰点文库上搜索。
HND财政预算答案
HND财政预算答案
PartA
（i）
Tricolplc
FlexedBudget
ForJune
OriginalBudget
2,000units
FlexedBudget
1,600units
Actualresults
1,600units
Variance
F/A
￡
￡
￡
￡
DirectMaterial
80,000
64,000
61,600
2,400
F
DirectLabour
36,000
28,800
35,200
6,400
A
VariableProductionOverheads
4,000
3,200
3,200
0
InsuranceCosts
2,200
2,200
2,400
200
A
Depreciation
15,000
1,500
1,500
0
RentandRates
2,500
2,500
2,500
0
AdministrationOverheads
2,000
2,000
2,200
200
A
Total
104,200
108,600
4,400
A
（ii）
Directmaterialtotalvariance
（standardunitsofactualproduction×standardprice）–（actualquantity×actualprice）
[（4kg×1600）×￡10]–￡61600
=￡64000–￡61600
=￡2400（F）
Theratefordirectmaterialtotalvariancesis£2,400/£64,000×100%=3.75%＞3%
Directmaterialpricevariance
actualquantity×（standardprice－actualprice）
=5600kg×（￡10-￡11）
=5600kg×￡1
=5600（A）
Therateofdirectmaterialpricevarianceis£5,600/£64,000×100%=8.75%＞3%
Directmaterialusagevariance
standardprice×（standardunitsofactualproduction-actualunits）
=￡10×（4kg×1600-5600kg）
=￡10×800kg
=￡8000（F）
Therateofdirectmaterialusagevarianceis£8,000/£64,000×100%=12.5%＞3%
Note:
Whenaddingthepriceandusagevariancestheresultmustequalthetotalvariance.Therefore,￡5600（A）（price）＋￡8000（F）（usage）=￡2400（F）（total）.
Directlabourtotalvariance
（standardhoursofactualproduction×standardrateph）－（actualhours×actual
rateph）
[（2h×1600）×￡9]－（3520h×￡10）
=（3200h×￡9）－￡35200
=￡28800－￡35200
=￡6400（A）
Therateofdiretclabourvarianceis6400/28800×100%=22.2%＞3%
Directlabourratevariance
actualhours×（standardrateph－actualrateph）
3520h×（￡9－￡10）
=3520h×￡1
=￡3520（A）
Therateofdirectlabourratevarianceis£3,520/£28,800×100%=12.2%＞3%
Directlabourefficiencyvariance
standardrateph×（standardhoursofactualproduction－
actualhours）
￡9×[2h×1600－3520h]
=￡9×（3200h－3520h）
=￡9×320h
=￡2880（A）
Therateofdirectlabourefficiencyvarianceis£2,880/£28,000×100%=10%＞3%
Note:
Whenaddingrateandefficiencyvariancestheresultmustequalthetotalvariance.Therefore,￡3520（A）（rate）＋￡2880（A）（efficiency）=￡6400（A）（total）.
Overheadtotalvariance
（standardinsurancecost－actualinsurancecost）＋（standardadministration
overheads－actualadministrationoverheads）
（￡2200－￡2400）＋（￡2000－￡2200）
=￡200（A）＋￡200（A）
=￡400（A）
Therateofoverheadtotalvarianceis£400/£4,200×100%=9.52%＞3%
（iii）
Analysis
Materialvariance
Fromtheactualbudget,wecanseethatthedirectmaterialtotalvarianceis￡2,400（F）.TheDirectmaterialusagevarianceis￡8,000（F）,theDirectmaterialpricevarianceis￡（5,600）（A）.
Thepossiblereasonsformaterialusagevariancesareinclude:
Usenewmachinery.
Usehigherquality
Thepossiblereasonsformaterialpricevariance:
Changesuppliers.
Usehigherqualitymaterial.
Lossofdiscount
Labourvariance
Thedirectlabourtotalvarianceis￡（6,400）（A）,theDirectlabourefficiencyvarianceis￡（2,880）（A）andtheDirectlabourratevarianceis￡（6,400）（A）.
Thepossiblereasonfordirectlabourefficiencyvariance:
Lowergradeworkforce
Shortageofskilledlabor
Thepossiblereasonfordirectlabourratevariance
Highergradeworkforces
Shortageofskilledlabour
Overheadvariance
Thetotaloverheadvarianceis￡（400）（A）.TheInsuranceandAdministrationvariancesare￡（200）（A）.Thetotaloverheadvarianceis￡（400）（A）.
Thepossiblereasonsforoverheadvariances:
Usingnewmachinery
Increasedadministrationcost
Toconcludeahigher-than-expectedwagesettlementforproductionoperates.
Difficulttradingconditions
Intenselycompetition
Recommendation
Accordingtoaboveanalysis,wecaneasilyunderstandtheorganization’scurrentsituation.Inordertoachievethelowercostsandhighprofitheresomerecommendationsdividedinthreesectionswhichincluedmaterialvariances,labourvariancesaswellastheoverheadvariances.
Therecommendationformaterialvariances:
Investigatethecheapermaterial.
Holdastafftrainingprogramtoincreasetheirworkefficiency.
Negotiatewithcurrentsupplierinordertoachievelowerprice.
Therecommendationforlabourvariances:
Providetrainingprogramtostaffforhigherskillofoperatingthenewmaterial.
Consideraboutthelowergradelabour
Therecommendationforoverheadvariances:
trytodecreasetheadministrationcost
Teachthestaffsscientificallyusetheseoverheadinordertomakeitlonger-used.
PartB
Paybackperiodmethod:
Year
Anuualcashflow
Cumulative
0
（1,000,000）
（1,000,000）
1
160,000
（840,000）
2
160,000
（680,000）
3
320,000
（360,000）
4
320,000
（40,000）
5（1/8of320,000）
40,000
NIL
5（7/8of320,000）
280,000
240,000
Paybackwilltake4year1.5months.
NetpresentValue
Annual
CashFlow
PresentValue
Factors
at10％
Present
Value
￡
￡
￡
￡
Year0
（1,000,000）
1.000
（1,000,000）
1
160,000
0.909
145,440
2
160,000
0.826
132,160
3
320,000
0.751
240,320
4
320,000
0.683
218,560
5
320,000
0.621
198,720
935,200
NetPresentValue
￡（64,800）
Thepremiseofpaybackperiodmethods
Identifyallofthecostsofinitialinvestment.Assumethattheywillbepaidnow.Findthecashinflowforeachproject.Addupcashflowseachyearuntilcostofprojectcovered.Picktheprojectwiththeshortestpaybackperiod.Ifthepaybackperiodisonlyoneyearthenitshouldbecomparedwithaninternalfigure
Thepremiseofdiscountedcashflowtechnique
Uncertaintydoesnotexist.Thereisnoinflation.Theappropriatediscountratetouseisknown,toavoidunnecessarycalculations.WhenundertakingDCFquestions,thediscountrateshavebeencomputedforyou,andaregiveninthediscounttables.Unlimitedfundscanberaisedatacompetitiverate.
Analyzingpaybackperiodmethod
Accordingtothepaybackperiodmethod,theoriginalcapitalthatthecompanyinvestis￡1,000,000andthereare5yearsforthecompanytogetthereturnthatisthebudgetedpaybackperiod.Accordingtotheprogram,4yearsand1.5monthsthatthecompanywillgetitsallinvestments.Atthelastyear,companywillgetthereturnabout￡280,000.Asaresult,basedontheperiodmethod,theprojectwillbeprofitableandisworthtoinvest.
Analyzingdiscountedcashflowtechnique
Ifthecompanyusesthediscountedcashflowtechnique,accordingtothepeogram,theinvestmentis￡1,000,000,andthenetpresentvalueis10%.Thebudgetedpaybackperiodis5years.After5years,theNPVfortheprojectwillbe￡-64,800.Itshowsthatthereturnislessthantheinvestment.Itwillbethelossof￡64,800toinvestthisproject.Sothisprojectwillnotbeprofitableandisnotworthtoinvest.
Recommendation
Accordingtothetwomethods,itisnotdifficulttofindthatthecompanywouldbettertochoosethepaybackperiodmethod.Thecompanychoosespaybackperiodmethodcouldgettheprofitof￡280,000andless5yearscouldgettheallinvestment.Andforthediscountedcashflowtechnique,itwillcost5yearsandloss￡64,800atlastoftheproject.So,basedontheprofit,thecompanywouldbettertochoosethepaybackperiodmethod.
Considerationofotherfactors
First,theenvironmentisonefactorthatthemanagersshouldtoconsider.Tricolmakesarangeoffurnitureandkitchenware.Itmaymakepolluteduringtheproducing.Ifthecompanydoesnotpayattentiontotheenvironment,itmaygetsomefine.
Technologyisonefactorthatthemanagersshouldtoconsiderabout.Ifthecompanyusesthenewtechnologyandequipmentintheproject,itcouldimproveitsproductivity.Andimproveitsprofitability.
Thecompanyshouldalsothinkaboutthelegal.Thecompanyshouldinsurethattheprojectisnotagainstthelegal.Ifnot,companymaybepunishedbythegovernmentandevenbebanded.
Atlast,companyshouldconsideritscustomers.Itshouldconsiderthatitsproducts,makingbytheproject,willbeattractedbythecustomers.Ifnocustomerslikeit,theymaygetlittleprofitfortheproject.
Conclusion
Asanadvisorforthecompany,thisreportcanhelpthecompanymaketheflexbudgetandvariancesandusethetwomethodstoanalysistheinvestmentandhelpthecompanychoosethebestmethod.Thiswillhelpcompanymakemuchprofit.
升级会员 