49 tayangan

Diunggah oleh S Kellvien Aseer

- Act202 Final(Fuchka)
- Break Even Analysis
- Unit 2.doc
- MASSS
- PopQuizCh3Au11
- Pharmacy
- Case Study 2_ana
- CVP 12prob
- 8quesChap22
- Fashion Shoe
- CVP Problems
- Mang Account
- Unit economics - 1.docx
- Group 13 Bill French
- Break Even Point Computation for Hotel
- Break Even Point Analysis-Definition, Explanation Formula and Calculation
- Module 12. Cost Volume Profit Analysis 22.06.2012
- TUGAS AKUNTANSI MANAJEMEN.docx
- Accounting
- U3 Computation of Material Variance -BEA-- Important

Anda di halaman 1dari 11

SECTION A: True/False Questions

1. Period costs are costs that are matched against revenues on a time period

basis. T

2. Fixed cost per unit varies with changes in volume of output. T

3. Total cost refers to activity cost per unit basis. F

Section B: Multiple Choice questions

1. After graduating from secondary school, Siew Chin had three choices, listed in

order of preference: (1) attend matriculation , (2) work in a printed circuit

board factory, or (3) do diploma at a college. Her opportunity cost of going to

matriculation includes which of the following?

A. the income she could have earned at the printed circuit board factory plus

the direct cost of attending matriculation (tuition, textbooks, etc.)

B. the income she could have earned at the printed circuit board factory plus

the benefits of attending college for diploma

C. the benefits she could have received from going to the college to

do diploma

D. cannot be determined from the given information

Question 2

a) A company manufactures and retails clothing. In the right-hand column, write

what type of expense each item is. These can be analysed as to whether they

are

direct materials (DM),

direct labour (DL),

manufacturing overhead (MOH),

administration expenses (AE),

selling and distribution expenses (S&D),

1)

2)

3)

4)

5)

6)

7)

Cost

Lubricants for sewing machines

Interest on bank overdraft

Woven silk

Wages of security guards for factory

Cost of advertising products on television

Wages of operators in the pattern & cut department

Wages of forklift truck drivers who handle raw

materials

Cost analysis

MOH

AE

DM

MOH

S&D

DL

MOH

b) Siti Moon has a catering business. One day she has to decide whether to

accept Lizas or Fazlis order, as she could not take both order at the same

time.

If she accepts Lizas, she has to incur total cost of RM 3,000, and get net

income of RM1,500.

If she accepts Fazlis, she has to incur total cost of RM 4,500, and get net

income of RM1,000.

If she declines both orders, she still has to incur RM500 on the cook fixed

salary (this was included in both orders total costs)

i.

Net income of RM1,000 from Fazlis order_

ii.

How much of the cost that should be considered as sunk cost if Siti accept

Lizas order?

Cooks fixed salary of RM500

4. Money has a time value whereby as an individuals earning grows, his/her

purchasing power also increases as time goes by. F

5. Under the simple interest scheme, you earn interest only on the principal

amount at the end of each interest period but for the compounding interest

scheme, you earn interest on the principal as well as interest on interest. T

6. The single payment present worth factor is designated as ( F/P, i ,N ) used in

the calculation to find the present worth of a future sum. F

7. The cash flow pattern of a linear gradient series produces an ascending or

descending line by a fixed amount. T

Section B: Multiple Choice questions

8. Contribution margin

A. is the difference between selling price per unit and total variable cost

B. is the total of fixed cost per unit and profit per unit

C. is the contribution that each unit makes towards absorbing variable costs

and showing a profit

D. is the firms profit at the break-even point

9. Economic equivalence

A. refers to a cash flow either for a single payment or a series of

payment that can be converted to an equivalent cash flow at any

point in time.

B. exists between cash flows that have the same economic effect but however

cannot be traded in the financial market place

C. refers to the fact that additional risk is not taken without additional return

by investors

2

D. is the concept of a nearby penny is worth a distant dollar

10. To increase a given future value, the discount rate should be adjusted

__________.

A.

upward

B.

downward

C.

first upward and then downward

D.

None of the above answers are correct; you should use PVIF.

A.

11. Mr Rahman recently bought TNB share at RM12.00 and will sell it when the

share price has doubled. If the share price of TNB is expected to increase 15%

per year, how long will he wait before selling the TNB shares?

1.8 years

B. 4.8 years

C. 6.0 years

D. 10.8 years

Section C

Question 1 (10 marks)

Information below has been gathered for Jooel Boonger Sdn Bhd.

Selling Price per unit

RM17

Fixed Expenses

Selling & Administrative

RM130,000

Interest Expense

Variable Expenses per unit

Cost of Goods Sold (COGS)

Selling & Administrative

RM10,000

RM4

RM3

REQUIRED:

i. What is the companys contribution margin?

CM = (Selling price VC) = 17 (4+3) = 10

ii. What is the break-even point in units?

Break even quantity

= (Fixed Cost)/ (CM)

/10 = 14,000 units

= [(130,000 + 10,000) + 0]

even, what is the number of units the company must sell?

Quantity = (Fixed Cost + Profit)/ (CM) = (140,000) + 42,000) / 10 = 18,200

units

iv. The companys supplier increases his prices. The COGS per unit increases

to RM5.50. The business is not able to pass on the price increase to

customers. By how much must fixed costs fall in order for the business to

breakeven? (4)

Break even quantity

= (Fixed Cost)/ (CM)

14,000

= FC / (17 (5.50+3)) ; FC = 119,000

.: FC must be reduced by RM21,000 (140k-119k) for the co. to breakeven.

OR 15% reduction

Question 2 = 14 marks

i) Johana has deposited RM33,000 today once in an account which will earn 10

percent annually. She plans to leave the funds in this account for seven years

earning interest. If the goal of this deposit is to cover a future obligation of

RM65,000, what recommendation would you make to Johana?

Prove the sufficiency of the deposit

= 33,000(F/P,10%,7yr) = 33,000 x (1+0.1)7 = 33,000 x 1.9487 =

64,307.10

Thus 64,307.10 < 65,000 , not sufficient

Recommendation (either 1)

- increase amount of deposit, OR

- choose other plan with higher interest earning, OR

- leave the fund for longer than 7 years

ii) A company expects to pay RM20,000 per year for a contracted cleaning

service starting at the end of next year and continuing for a total of 5

payments. Construct the cash flow diagram to find the present worth of

the payments at an interest rate of 8% per year.

Answer: P is to be determined in year 0.

P=?

iii) For the cash flows shown below, calculate the future worth in year 8 using

i = 10%

Year

0

1

Cash flow,RM per year 100

2

100

3

100

4

200

5

200

6

200

200

FV n=8 =100(F/A,10%,3)(F/P,10%,6) + 200(F/A,10%,4)(F/P,10%,2)

= $1666

SPECIAL SEMESTER , 2015/2016, TEST 1

4. It is better to receive money earlier than later because our purchasing power

will increase in the future. F

5. Fixed costs are zero when production is equal to zero. F

6. Steel in bridge construction is a direct raw material. T

7. Heat and light costs associated with a companys administrative function is a

nonmanufacturing costs. T

8. Fixed cost per unit varies with changes in volume. T

9. The quantity of a variable at which revenues and costs are equal is known as

the maximum cost point. F

10.

Volume

Cost

1 unit

RM 18

10 units

180

100 units

1800

QChair manufacturing company produces ergonomic small office chair that can

contribute to increased productivity , improved health and safety, increased job

satisfaction and

decreased injuries and workers compensation claim in

companies.

Financial data of the manufacturing process is as in the table below.

ITEM

RM

30

10

10

ExpensesPer Unit

10

500,000

300,000

160

(a)Calculate the contribution margin and interpret your answer.

CM = Price Avg. Variable Cost

= 160 (30+10+10+10) = RM100 To cover for AFC and profit per

unit.

(b)What is the break-even sales?

BE (Sales) = [Fixed cost / CM per unit] x SP/unit = [800,000 / (160

60)]*160

(c) Calculate the total non manufacturing cost per unit at the break-even point.

(300,000 /8,000) + 10 = 37.5 + 10 = RM47.50

(d) i. Do you agree that the quantity manufactured and sold should increase

by 25% to make a profit of RM200,000 compared to the break even

point? Show your calculations.

(FC + PROFIT)/ MC

(800,000 + 200,000)/ 100 = 10,000 units

10,000 units -8,000 units= 2,000 units]; an increase of 2,000/8,000 = yes,

25%

Or

160Q (800,000+60Q)= 200,000; Thus Q = 10,000 units

From part (b), break-even units are 8,000

10,000 units - 8,000 units= 2,000 units; an increase of 2,000/8,000 = yes,

25%

ii. What is the profit per unit at RM200, 000 profit?

200,000 / 10,000 = RM20

(e)Due to the shortage of supply of materials used to make the seat pan, the

cost of direct material per unit increases by RM5, all else remain constant.

What will be the effect on quantity to maintain a profit of RM200, 000?

160Q (800,000 + 65Q) = RM200,000; Q = 1,000,000 / 95 = 10526 units;

an increase of 526 units to produce and sell.

1. Economic equivalence exists when

A. cash flows have the same economic effect and could be traded for

one another in the financial marketplace

B. cash flows have the same economic effect but could not be traded for one

another in the financial marketplace

C. cash flows have different economic effect but could be traded for one

another in the financial marketplace

D. cash flows have different economic effect and could not be traded for one

another in the financial marketplace

2.

The process of finding the future value is often called _______________

process.

A.

compounding

B.

disbursement

C.

discounting

D.

receipt

3.

a specified number of periods?

A.

Annuity

B.

Future Value

C.

Present Value

D.

Principal Amount

Question 4: [2 marks]

a. A person deposits RM10,000 into a money market account which pays interest

at a rate of 8% per year. Calculate the amount that would be in the account at

the end of ten years.

F= 10,000(F/P,8%,10) = 10,000 (2.1589)= RM21589

Question 5

A piece of machinery has a first cost of RM50,000 with a monthly operating cost

of RM10,000.

Calculate the monthly income if the company wants to recover its investment in

five years at an interest rate of 1% per month.

ANSWER

First cost:

A= 50,000(A/P,1%,60) [1 mark] = 50,000(0.0222) = RM1110

Monthly cost= RM1110 + RM10,000 = RM11,110

Income must be RM11,110

7

QUESTION 4 [25 marks]

(a) A company has a fixed costs of RM20,000 per month, the variable cost for its

product is RM 400 per piece and break even quantity per month is 50 pieces.

(i) Calculate the price charged to break even.

(ii) Calculate the profit if 250 pieces were sold in the market.

(iii)

The company has a goal of RM100,000 profit next year. Determine

the change (in RM) in variable cost (assuming fixed cost and price remain

the same) necessary to meet this goal if the number of units sold is the

same i.e. 250 pieces.

(b)What would be the effect on the break even quantity if the fixed costs were

decreased by 10% and the variable cost per piece were increased by 10%

simultaneously?

i.

ii.

iii.

V = 80,000/250 = RM320

Change in VC (decrease) = RM400-RM320 = RM80

VC increased by 10% = RM440

18,000/(800-440) = 50 pieces; No change occurred in the original break

even point.

COEB 442, Semester 1, 2015/2016

(a)

Upin and Ipin are twins. Upin is planning for his retirement 19 years from

now. He plans to invest RM5,800 per year for the first 8 years and RM8,300 per

year for the following 11 years (assume all cash flows occur at the end of each

year). If both Upin and Ipin can invest in saving account with 9% interest rate,

how much Ipin has to deposit each year in equal amount into his account so

that after 19 years, the total amount in his account is the same as his brother

Upin? (Note: all cash flows occur at the end of the year).

FV n=19 = [5800 (F/A, 9%, 8) (F/P, 9%, 11) + 8300 (F/A, 9%, 11)] =

310806.55

A = 310806.55 (A/F, 9%, 19) = 6744.50

8

Or

FV n=19 = [5800 (P/A, 9%, 8) + 8300 (P/A, 9%, 11) (P/F, 9%, 8)] =

60450.73

A = 60450.73 (A/P, 9%, 19) = 6752.34

(b)

that the maintenance cost for the machine during the first year will be

RM2,800. The maintenance cost is expected to increase by RM800 per year

throughout its seven years useful life. Ali wants to set up an account and

all future maintenance expenses will be paid out of this account. Assuming

the maintenance cost occur at the end of year, how much does Ali has to

deposit in the account now at 10% interest rate?

P = A (P/A, 10%, 7) + G (P/G, 10% 7) = 2,800 (4.8684) + 800 (12.7631)

= 23,842

Rinching Furniture Sdn Bhd operates a factory at the Beranang Industrial Zone

that manufacture ergonomic rattan chair. The data given below are for costs in

year 2014 for producing 3,000 units of the rattan chairs. Currently, each rattan

chair is been sold at RM120.

Units Produced

Direct labor

Direct raw materials

Manufacturing overhead:

Variable portion

Fixed portion

Selling and administrative costs:

Variable portion

Fixed portion

Costs (RM)

90,000

60,000

------------54,000

24,000

30,000

(a) Given that the manufacturing cost per unit is RM80, calculate the variable

portion value of the manufacturing overhead costs in year 2014. [Hint: Fill

in the missing value in the table]

Total manufacturing costs = RM80 x 3,000 = RM240,000

Variable Manuf. Overhead = RM240k -90k-60k-54k = RM36,000

(b) Using the answer that you have calculated in part (a), compute the

following:

i. Total variable costs

90k +60k +36k +24k = RM210,000

ii. Total variable costs per unit

9

(c) Based on the current selling price set by the company, answer the

following:

i. What is the companys profit per unit for the sale of 3,000 units of

rattan chairs?

Profit = TR TC; = (RM120 x 3,000 units) 294k = RM66,000 /

3,000 = RM22

ii. Calculate the contribution margin per unit of the rattan chair when

sales are at 3,000 units. Interpret the meaning of your answer.

Contribution margin /unit = P AVC = RM120 RM70 = RM50

The contribution that each unit makes toward absorbing (i) fixed costs and

(ii) showing a profit.

iii. Prove that the profit per unit plus the average fixed costs is equal to the

contribution margin value as calculated in part c(ii).

Contribution margin = Profit per unit + AFC = RM22k + 84k / 3k

RM50

iv. Determine the break-even volume and sales.

TR= TC; P x Q= FC +( AVC x Q); 120Q = 84,000+ 70Q ; Q = 1680

COEB 442, Semester 2, 2014/2015

QUESTION 4 [25 marks]

The following are the data for LightSys Software Corporation per month.

Units Sold

Total Variable Costs

Contribution Margin Per unit

Profit

RM560, 000

RM6

RM70, 000

Avg Variable Cost = 560,000/40,000 = RM14

CM = Price AVC; Thus P= RM6 + RM14 = RM20

(b)How much sales can the company generate?

RM20 x 40,000 [1 m] = RM800, 000

(c) Do you agree that the average fixed cost is RM1.75? Calculate to answer.

20(40,000) (560,000 + FC)= RM70,000

AFC = RM170, 000 / 40,000 = RM 4.25; NO

10

(d) How many units of pendrive must LightSys sell in order to break even?

(round to the nearest whole unit)

20Q = 170,000 + 14Q; Q = 170,000/6 = 28334 units; thus Sales: 28334 x

RM20 = RM566680

(e) Given the variable production cost per unit increases by RM 2, but no

change in fixed costs, can the company maintain the same level of profit

if it sells 50,000 units of pendrive per month? Calculate to answer.

TR = RM20(50000) = RM1,000,000

TC= RM16(50000) + RM170000 = RM970000

PROFIT: RM30,000

NO; A DECLINE IN PROFIT OF RM70000-RM30000 = RM40000

11

- Act202 Final(Fuchka)Diunggah olehSyedSalmanRahman
- Break Even AnalysisDiunggah olehTimothy Wagey
- Unit 2.docDiunggah olehAbdii Dhufeera
- MASSSDiunggah olehVince Besario
- PopQuizCh3Au11Diunggah olehChristian De Leon
- PharmacyDiunggah olehLalit Shah
- Case Study 2_anaDiunggah olehanitabella05
- CVP 12probDiunggah olehAries A. Bautista
- 8quesChap22Diunggah olehcarter1673
- Fashion ShoeDiunggah olehManal Elkhoshkhany
- CVP ProblemsDiunggah olehBindu Kovvuru
- Mang AccountDiunggah olehDinesh Sharma
- Unit economics - 1.docxDiunggah olehSai Teja
- Group 13 Bill FrenchDiunggah olehketan-ray-8621
- Break Even Point Computation for HotelDiunggah olehAgustinus Agus Purwanto
- Break Even Point Analysis-Definition, Explanation Formula and CalculationDiunggah olehTelemetric Sight
- Module 12. Cost Volume Profit Analysis 22.06.2012Diunggah olehNajla
- TUGAS AKUNTANSI MANAJEMEN.docxDiunggah olehThera Monica
- AccountingDiunggah olehatif
- U3 Computation of Material Variance -BEA-- ImportantDiunggah olehSumit
- Exam61.05.docDiunggah olehRabah Elmasri
- CVP Analysis (1)Diunggah olehKat Lontok
- Sales MixDiunggah olehUtsav Choudhury
- Case SolutionDiunggah olehAshutosh Jha
- 40048227 Bill French AssignmentDiunggah olehCharmaine Reyes Fabella
- 31Diunggah olehPrem Ananth
- 31547539 Marketing Project on Candia Milk Pakistan as a Failed ProductDiunggah olehAdnan Ashraf
- Cost Accounting and Control, Budget and Budgetary Control.Diunggah olehBala Mech
- Break-Even Analysis.pptxDiunggah olehrupa vidwaja
- 1807598434 (1)Diunggah olehMicheal Chua

- 50 years of REITsDiunggah olehGizem Aydın
- Certificate of Public ConvenienceDiunggah olehShan Khing
- Security+Analysis+and+Portfolio+Managment+Unit+I+ +IIIDiunggah olehIndu Gupta
- 0F5C922F-ADE5-4246-B2AD-EBF78F728F60-1Diunggah olehAnthony
- taxation full case.docxDiunggah olehJacquelyn Alegria
- What is SukukDiunggah olehumer
- Role of IntermidiariesDiunggah olehShreyas Dicholkar
- Ak.keu (Problem)Diunggah olehRAMA
- Islamic Banking & FinanceDiunggah olehpearl_taimoor
- Mineral_Policy_of_Tanzania_2009.pdfDiunggah olehPaul Nyabisi
- Feasibilty Study DONE !Diunggah olehvhenb
- Ifrs 17 Pocket Guide on Reinsurance Contracts HeldDiunggah olehSergio D. Chavez
- 2018 Budget FinalDiunggah olehEffNow
- Accounting Interview QuestionsDiunggah olehSaurabh Kumar
- Dipifr 2005 Dec QDiunggah olehAndrew Wong
- Wake County Budget Book Recommended BookDiunggah olehraleighpublicrecord.org
- Project on UCO Bank FinalDiunggah olehMilind Singh
- acct 2020 excel projectDiunggah olehapi-242429455
- Grants Management Analysis4Diunggah olehsmnabeel
- Corporate ActionsDiunggah olehdasgunajit
- In Re Manzano and NitafanDiunggah olehche austria
- Quiz - Strategic Plan selected sectionsDiunggah olehdeshujoz
- Fostering Rural EntrepreneurshipDiunggah olehmeegun
- FORMSDiunggah olehمحمد مرتضیٰ
- 2015 Edelman Trust Barometer: Executive SummaryDiunggah olehEdelman
- Supply, Demand, & Government in the MarketsDiunggah olehHaroldLim
- KhumsWorksheetDiunggah olehAbbas Faheem
- Bwfs 2023 - Topic 3Diunggah olehYoo Chuening
- Shabari Nayak Honors 2004 Info]Diunggah olehmvasan
- Intercompany Eliminations Explained - Pederson CPA ReviewPederson CPA ReviewDiunggah olehKrishna Mohan Pasumarthi