F5习题课资料

1 400-626-1716
ACCA F5 Performance Management
ZBCT International Financial Education
(c) Using throughput accounting principles, advise management of the quantities of each type of bicycle that should be manufactured which will maximise net profit and prepare a projection of the net profit that would be earned by Ride Ltd in the year ending 31 December 2005. (5 marks) (d) Explain two aspects in which the concept of ‘contribution’ in throughput accounting differs from its use in marginal costing. (4 marks) (20 marks)
ACCA F5 Performance Management
ZBCT Internationter 1 1. ABC：2012 Dec Q5 2.Throughput accounting: P204 Q2
Q2 Ride Ltd (paper 3.3, Dec 04, Throughput accounting ) Ride Ltd is engaged in the manufacturing and marketing of bicycles. Two bicycles are produced. These are the ‘Roadster’ which is designed for use on roads and the ‘Everest’ which is a bicycle designed for use in mountainous areas. The following information relates to the year ending 31 December 2005: (1) Unit selling price and cost data is as follows: Roadster Everest £ £ Selling price 200 280 Material cost 80 100 Variable production conversion costs 20 60 (2) Fixed production overheads attributable to the manufacture of the bicycles will amount to £4,050,000. (3) Expected demand is as follows: Roadster 150,000 units Everest 70,000 units (4) Each bicycle is completed in the finishing department. The number of each type of bicycle that can be completed in one hour in the finishing department is as follows: Roadster 6.25 Everest 5.00 There are a total of 30,000 hours available within the finishing department. (5) Ride Ltd operates a just in time (JIT) manufacturing system with regard to the manufacture of bicycles and aims to hold very little work-in-progress and no finished goods stocks whatsoever. Required: (a) Using marginal costing principles, calculate the mix (units) of each type of bicycle which will maximise net profit and state the value of that profit. (6 marks) (b) Calculate the throughput accounting ratio for each type of bicycle and briefly discuss when it is worth producing a product where throughput accounting principles are in operation. Your answer should assume that the variable overhead cost amounting to £4,800,000 incurred as a result of the chosen product mix in part (a) is fixed in the short-term. (5 marks)
2 400-626-1716
ACCA F5 Performance Management
ZBCT International Financial Education
per metre to buy. Other material – other materials cost $8·10 per radio. Assembly labour – these are skilled people who are difficult to recruit and retain. Edward Co has more staff of this type than needed but is prepared to carry this extra cost in return for the security it gives the business. It takes 30 minutes to assemble a radio and the assembly workers are paid $12·60 per hour. It is estimated that 10% of hours paid to the assembly workers is for idle time. Production Overheads – recent historic cost analysis has revealed the following production overhead data: Total production overhead $ 620,000 700,000 Total assembly labour hours 19,000 23,000
3. Target cost: P205 Q3
Q3 EDWARD CO (Paper F5, Dec 07 Q1, target costing) Edward Co assembles and sells many types of radio. It is considering extending its product range to include digital radios. These radios produce a better sound quality than traditional radios and have a large number of potential additional features not possible with the previous technologies (station scanning, more choice, one touch tuning, station identification text and song identification text etc). A radio is produced by assembly workers assembling a variety of components. Production overheads are currently absorbed into product costs on an assembly labour hour basis. Edward Co is considering a target costing approach for its new digital radio product. Required: (a) Briefly describe the target costing process that Edward Co should undertake. (3 marks) (b) Explain the benefits to Edward Co of adopting a target costing approach at such an early stage in the product development process. (4 marks) (c) Assuming a cost gap was identified in the process, outline possible steps Edward Co could take to reduce this gap. (5 marks) A selling price of $44 has been set in order to compete with a similar radio on the market that has comparable features to Edward Co’s intended product. The board have agreed that the acceptable margin (after allowing for all production costs) should be 20%. Cost information for the new radio is as follows: Component 1 (Circuit board) – these are bought in and cost $4·10 each. They are bought in batches of 4,000 and additional delivery costs are $2,400 per batch. Component 2 (Wiring) – in an ideal situation 25 cm of wiring is needed for each completed radio. However, there is some waste involved in the process as wire is occasionally cut to the wrong length or is damaged in the assembly process. Edward Co estimates that 2% of the purchased wire is lost in the assembly process. Wire costs $0·50