fungxieupdate1Word文档下载推荐.docx

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ASSIGNMENTSWILLBEDOWNGRADEDACCORDINGLY

ASSESSMENTCRITERIA:

-PASS:

OUTCOMES

EVIDENCE

FORCRITERIA

FEEDBACK

ASSESSOR’SDECISION

INTERNAL

VERIFICATION

√

X

1.Collectandanalysecostinformationwithinabusiness

2.Proposemethodstoreducecostsandenhancevaluewithinabusiness

⏹identifyandclassifydifferenttypesofcost

⏹explaintheneedfor,andoperationof,differentcostingmethods

⏹calculatecostsusingappropriatetechniques

⏹collect,analyseandpresentdatausingappropriatetechniques

⏹prepareandanalyseroutinecostreports

⏹calculateandevaluateindicatorsofproductivity,efficiencyandeffectiveness

⏹explaintheprinciplesofqualityandvalue,andidentifypotentialimprovements

OUTCOMESANDCRITERIA

ASSESSOR’SDECISION（√ORX）

INTERNALVERIFICATION

（√ORX）

Meritgradesawarded

M1

M2

M3

Distinctiongradesawarded

D1

D2

D3

ASSESSOR’SCOMMENTS

Prepareandanalyseroutinecostreports

2.2Useperformanceindicatorstoidentifypotentialimprovements

2.3Suggestimprovementstoreducecosts,enhancevalueandquality

InternalVerificationYorN（RefertoIVRecord）

NameofVerifier……………………………….…Date…………………

Iamawarethatplagiarismisaseriousoffenceandcertifythatthecontentsofthisassignmentaremyownwork.WhereIhavereferredtoideasotherthanmyownIhaveacknowledgedthiswithareferencedbibliography.

Studentsignature…………………………………………………Date…………………

Allgradesaresubjecttoconfirmationbytheexternalverifier

Grading

PassAllcriteriaidentifiedintheassignmentaremet.

MeritUnderstandthebasicrulesofManagementAccountingandproperlyusearangeofmethodsandtechniquestocollect,analyseandproduceinformation/data.,i.e.explaintheneedfor,andoperationof,differentcostingmethodscalculatecosts.Thecandidatescanmakeadecisionontheproposalaswell.（M1）

Ajustifiedchoiceoftheaccountingtechniquesandconceptsappliedandusedtoanalyzethesituationfacedbythenewlyshownproductionchances.Thisjudgmentisbasedonanunderstandingoftherelevantprofitgivenbythenewproductionopportunities.（M2）

Themethodologytakeninanalyzingtheopportunitiesprovidedisinastandardformat（M3）

Distinction

Theinformationgatheredisaccurateandvalid.Thecandidatescanprocesscomplexdataaswell.Thedecisionmakingbasedonthedatagatheredisrelevant.（D1）

Thecandidatescanunderstandtheconceptsofvariablecostssufficiently,correctjudgmentandauditoftheenvironmentthecompanyisexperiencing.Theanalysisandthejudgmentareinterlinkedlogicallyandareconsistent.（D2）

Themethodologytakeninanalyzingtheopportunitiesprovidedisaccurate.TheproposalmustillustratethefullunderstandingoftheconceptsofManagementAccounting,i.e.theconceptsofcosting.Theproposalsmustofferarealisticandeffectivewayforwardforthebusiness.（D3）

NOTES:

Format:

PrintedFont:

TimesNewRomanFontStyle:

RegularSize:

12Paragraph:

Single

Anadvisorofyourcompany

YouarethefinancemanagerinadepartmentoftheCouncilthatmanufactureswindowunits.BesidessellingtheseunitstootherdepartmentsoftheCouncil,youalsosellthemtooutsidebusinesses.

Thecostsandrevenuesforyourdepartmentforthepresentfinancialyearareexpectedtobeasfollows:

£

Directlabour160,000

Directmaterials210,000

Factoryindirectexpenses*90,000

Administrationexpenses30,000

Sellinganddistributionexpenses20,000

Financeexpenses10,000

520,000

Netprofit80,000

Sales:

4,000unitsat£

150each600,000

*Madeupofone-thirdfixedandtwo-thirdsvariableexpenses.

Towardstheendoftheyearthreeadditionalprojectscomeunderconsideration.Allofthesewouldrequireextraproduction.Theyare:

（i）Anewcustomerwouldtake200unitsannually.Theorderwouldbringaboutextravariablecostsindirectproportiontotheextraproductionneeded.Inadditionanextramachinewouldhavetobeboughtfor£

30,000;

itwouldlastforfouryearsbeforebeingscrapped,therebeingascrapvalueof£

2,000.Theextrarunningcostsofthismachinewouldbe£

18,000perannum.Thehighestpricethatcouldbepaidbythiscustomeris£

250perunit.

（ii）Anexistingcustomersayshewilltake50additionalunitsperannum,butthepricewillhavetofallto£

130perunitonthese50units.

（iii）Itisfeltthatthereissufficientcapacitywithinthebuildinginwhichthedepartmentishousedtoallowproductiontobeincreasedbyanadditional400unitsperannum.Thiswouldbringaboutextravariablecostsindirectproportiontotheextraproductionneeded.Inaddition,thesellinganddistributionexpenseswouldincreaseby£

5,000,witha£

3,000increaseintheadministrationexpenses.Anextramachinewouldalsohavetobeboughtfor£

50,000;

itwouldlastforfiveyearsbeforebeingscrapped,therebeingascrapvalueof£

5,000.Theextrarunningcostsofthismachinewouldbe£

16,000perannum.

Required:

Basedontheinformationabove,whatadvicewouldyougivetothedepartmentonwhetherornottheorder:

a）in（i）shouldbeaccepted?

and

b）in（ii）shouldbeaccepted?

Youshouldstatehowyoumightqualifythisadvice.

c）In（iii）,howmuchwouldyouhavetochargeperunittoensurethatthedepartmentachievedanetprofitof£

100,000perannum.Advisewhetherthisseemsareasonableproposition.（Assume（i）and（ii）arenotgoingahead.）

Directlabor£

160,000

Directmaterials£

210,000

Becausemadeupofone-thirdfixedandtwo-thirdsvariableexpenses.

Soactualfactoryindirectexpenses=£

60.000（2/3of£

90,000）

Totalcost=Directlaborexpenses+Directmaterialsexpenses+Actualfactoryindirectexpenses

=£

160,000+£

210,000+£

60,000

430,000

Becausehave4,000units

Sothecostofeachunit=Totalcost/Totalunits=£

430,000/4,000

=£

107.5

Acostunitisaunitofproductorservicetowhichcostscanberelated.Thecostunitisthebasiccontrolunitforcostingpurposes.

Afixedcostisacostwhichisincurredforaparticularperiodoftimeandwhich,withincertainactivitylevels,isunaffectedbychangesinthelevelofactivity.

Becauseanextramachinewouldhavetobeboughtfor£

2,000.

So,Fixedcost=（£

30,000-£

2,000）/4

7,000

Avariablecostisacostwhichtendstovarywiththelevelofactivity.

Becausetheextrarunningcostsofthismachinewouldbe£

18,000perannum.

SoVariablecostsis£

18,000

Extracost=£

7,000+£

18,000

25,000

Becausehave200units

Soextracostofeachunit=£

25,000/£

200

125Becauseofexistcostofeachunitis£

107.5andextracostofeachunitis£

125

SoTotalcostsofeachunit=Existcostofeachunit+extracostofeachunit=£

107.5+£

=£

232.5Because,thecostsis£

232.5andthehighestpricethatcouldbepaidbythiscustomeris£

250perunit.So,businessshouldbeaccepted.

BecauseDirectlabourexpensesis£

160,000,Directmaterialsexpensesis£

210,000,Factoryindirectexpensesis£

90,000,Administrationexpensesis£

30,000,Sellinganddistributionexpensesis£

20,000andFinanceexpensesis£

10,000.

So,Totalcosts=Directlabourexpenses+Directmaterialsexpenses+Factoryindirectexpenses+Administrationexpenses+Sellinganddistributionexpenses+Financeexpenses

160000+£

210000+£

90000+£

30000+£

20000+£

10000

=£

520000

So,Costofeachunit=Totalcosts/units

520000/4000

130

Becauseofthecostofeachunitis£

130andpricewillhavetofallto£

130perunit.Thebusinesswouldnotloss.

So,businessshouldbeaccepted.

Becauseanextramachinewouldalsohavetobeboughtfor£

5,000.

SoFixedcosts=（Anextramachine-ascrapvalue）/5

=（£

50,000-£

5,000）/5

9,000

So,Variablecostsis£

16,000

BecauseofFixedcostsis£

9,000andVariablecostsis£

16,000

SoExtracosts=Fixedcosts+Variablecosts

9,000+£

Becausehave400units.

Sotheextrapriceofeachunit=£

25,000/400=£

62.5

BecausetheExistcostofeachunitis£

107.5andtheextrapriceofeachunit£

Socostofeachunit=Existcostofeachunit+extrapriceofeachunit

62.5=£

170BecauseDirectlabor£

160,000Directmaterials£

210,000Factoryindirectexpenses£

90,000Administrationexpenses£

33,000Sellinganddistributionexpenses£

25,000Financeexpenses£

10,000Sales:

400unitsat£

170each68,000596,000Netprofitis£

100,000Thesales=Sales+Netprofit

696,000Thesalesofperunits=£

696,000/（4,000+400）=£

158.18