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Part B sẽ ôn lại 5 dạng bài tập quan trọng môn Performance Management (F5) với chủ đề Specialist cost and management accounting techniques.
1. Tổng quan
|
Topic |
Question types |
Question index |
|
|
|
|
MCQ |
Case |
|
Specialist cost and management accounting techniques |
1. Activity-based costing |
1,2,3,4 |
5 |
|
2. Target costing |
6,7,8 |
9,10 |
|
|
3. Lifecycle costing |
11,12,13 | 14 | |
|
4. Throughput accounting |
15,16,17,18 | 19 | |
|
5. Environmental accounting |
20,21,22 |
|
|
2. Dạng bài tập chi tiết:
2.1. Dạng 1: Activity-based costing
Ref: Tóm tắt kiến thức Dạng 1: Activity Based Costing
Câu 1:
Question: Which of the following statements are true regarding activity‐based costing?
- A cost pool is an activity which consumes resources and for which overhead costs are identified and allocated.
- The overhead absorption rate (OAR) is calculated in the same way as the absorption costing OAR, and the same OAR will be calculated for each activity.
A. 1 only
B. 2 only
C. Neither 1 nor 2
D. Both 1 and 2
Answer: A
Statement (2) is not correct. Although the OAR is calculated in the same way as the absorption costing OAR, a separate OAR will be calculated for each activity.
Câu 2:
Question: Which of the following statements are true regarding ABC and cost drivers?
- A cost driver is any factor that causes a change in the cost of an activity.
- For long‐term variable overhead costs, the cost driver will be the volume of activity.
- Traditional absorption costing tends to under‐allocate overhead costs to low‐volume products.
A. 1 and 3
B. 2 and 3
C. 1 and 2
D. 1, 2 and 3
Answer: D
Statement (1) provides a definition of a cost driver. Cost drivers for long‐term variable overhead costs will be the volume of a particular activity to which the cost driver relates, so Statement (2) is correct.
Statement (3) is also correct. In traditional absorption costing, standard high‐volume products receive a higher amount of overhead costs than with ABC. ABC allows for the unusually high costs of support activities for low‐volume products (such as relatively higher set‐up costs, order processing costs, and so on).
Câu 3:
Question: A company manufactures two products, X and Y, for which the following information is available:
|
Product X |
Product Y |
Total |
|
|
Budgeted production (units) |
1,000 |
4,000 |
5,000 |
|
Labour hours per unit/in total |
8 |
10 |
48,000 |
|
Number of production runs required |
13 |
15 |
28 |
|
Number of inspections during production |
5 |
3 |
8 |
|
Total production set up costs |
$140,000 |
|
Total inspection costs |
$80,000 |
|
Other overhead costs |
$96,000 |
Other overhead costs are absorbed on a labour hour basis.
Using activity-based costing, what is the budgeted overhead cost per unit of Product D?
A. $43.84
B. $46.25
C. $131.00
D. $140.64
Guidance:
Step 1: Determine the cost drivers.
Step 2: Calculate the absorption rate per unit for each type of overhead costs.
Step 3: Calculate the overhead cost for each activity on the basis of the cost driver.
Step 4: Calculate total overhead cost and allocate it for each unit of the product.
Answer: B
Step 1: Determine the cost drivers.
|
The overhead costs |
The cost drivers |
|
Production set up costs |
Number of production runs required |
|
Inspection costs |
Number of inspections during production |
|
Other overhead costs |
Number of labour hours |
Step 2: Calculate the absorption rate per unit for each type of overhead costs.
O.A.R of productions set up costs = $140,000/28 = $5,000
O.A.R of inspection costs = $80,000/8 = $10,000
O.A.R of other overhead costs = $96,000/48,000 = $2
Step 3: Calculate the overhead cost for each activity on the basis of the cost driver.
Overhead costs of product Y:
Productions set up costs = 15 × $5,000 = $75,000
Inspection costs = 3 x $10,000 = $30,000
Other overhead costs = 40,000 × $2 = $80,000
Step 4: Calculate the total overhead cost and allocate it for each unit of the product.
Total overhead cost = $75,000 + $30,000 + $80,000 = $185,000
Overhead cost per unit of product Y = $185,000/4,000 units = $46.25
Câu 4:
Question:
The ABC Company manufactures two products, Product A and Product B. Both are produced in a very labor-intensive environment and use similar processes. A and B differ by volume. B is a high‐volume product, while A is a low‐volume product. Details of product inputs, outputs and the costs of activities are as follows:
|
Direct labour hours/unit |
Annual output (units) |
Materials cost per unit |
|
|
Product A |
5 |
1,200 |
20 |
|
Product B |
10 |
6,000 |
15 |
Total production overheads are $420,000.
What is the cost per unit for product B using traditional methods, absorbing overheads on the basis of labour hours?
A. $78.00
B. $148.84
C. $110.00
D. $87.00
Guidance:
Step 1: Determine the types of costs.
Step 2: Calculate overhead absorption rate on the basis of absorption.
Step 3: Calculate overhead cost per unit on the basis of absorption.
Step 4: Calculate total cost per unit
Answer:
Step 1: Determine the types of costs.
Total cost = Materials cost + Overhead cost
Step 2: Calculate overhead absorption rate on the basis of absorption.
Overhead absorption rate = Total overhead cost/ Total number of direct labour hour
= $420,000/ (1,200 x 5 + 6,000 x 10) = $6.36
Step 3: Calculate overhead cost per unit on the basis of absorption.
B uses 10 direct labour hours per unit so will have an overhead cost per unit of 10 hours × $6.36 per hour = $63.6
Step 4: Calculate the total cost per unit.
Total cost per unit = Materials cost per unit + Overhead cost per unit = $15 + $63.6 = $78.
Câu 5:
Question:
DCP Co makes three types of watch: D, C, and P. DCP Co are using the traditional product costing system at present, although an activity-based costing (ABC) system is being considered. Details of the product lines for a typical period are:
|
Hours per unit |
Materials cost per unit |
Number of product (Unit) |
||
|
Labour hours |
Machine hours |
|||
|
$ |
||||
|
Product D |
0.5 |
1.5 |
20 |
750 |
|
Product C |
1.5 |
1 |
15 |
1,250 |
|
Product P |
1 |
3 |
10 |
7,000 |
Direct labour costs $16 per hour and production overheads are absorbed on a machine hour basis.
Total production overheads are $654,500 and further analysis shows that the total production overheads can be divided as follows:
The following total activity volumes are associated with each product line for the period as a whole:
Required:
- What is the cost per unit for product D using traditional methods, absorbing overheads on the basis of machine hours?
- What is the total amount of machining overhead that would be allocated to Product C for the period using ABC?
- DCP Co is attempting to identify the correct cost driver for a cost pool called quality control.
A. Number of units produced
B. Number of inspections
C. Labour hours
D. Number of machine setups - If Triple Co decides to adopt ABC, which of the following is a disadvantage that Triple Co may encounter as a result of this decision?
A. ABC can only be applied to production overheads.
B. The cost per unit may not be as accurate as it was under traditional absorption costing.
C. The benefits obtained from ABC might not justify the costs.
D. It will not provide much insight into what drives overhead costs.
Answer:
1. The cost per unit for product D using traditional methods is $70
Step 1: Determine the types of costs.
Total cost = Direct labour costs + Materials cost + Overhead cost
Step 2: Calculate overhead absorption rate on the basis of absorption.
Overhead absorption rate = Total overhead cost/ Total number of direct labour hour
= $654,500 / (750 x 1.5 + 1,250 x 1 + 7,000 x 3) = $654,500/ $23,375 = $28
Step 3: Calculate overhead cost per unit on the basis of absorption.
D uses 1.5 machine hours per unit so will have an overhead cost per unit of 1.5 hours × $28 per hour = $42
Step 4: Calculate the total cost per unit.
D uses 0.5 labour hour per unit so will have direct labour costs per unit of 0.5 hours × $16 per hour = $8
Total cost per unit = Direct labour costs per unit + Materials cost per unit + Overhead cost per unit
= $8 + $20 + $42 = $70
2. Total amount of machining overhead of Product C using ABC are $7,000
Step 1: Determine the cost drivers.
|
The overhead costs |
The cost drivers |
|
Machining overhead |
Machine hours |
Step 2: Calculate the absorption rate per unit for each type of overhead costs.
O.A.R of machining overhead = ($654,500 x 20%)/ (750 x 1.5 + 1,250 x 1 + 7,000 x 3)
= $130,900/ $23,375 = $5.60
Step 3: Calculate the overhead cost for each activity on the basis of the cost driver.
Machining overhead costs of product C = $5.60 x 1 x 1,250 = $7,000
3. The correct answer is: Number of inspections
The number of inspections per product is likely to be the main driver of quality control costs. The number of setups is unlikely to have an effect on the quality control costs. Some product lines may require more inspections than others, therefore 'number of units produced' is not sufficient to use as the cost driver. Labour hours will not reflect the quality control aspect of individual products.
The correct answer is: The benefits obtained from ABC might not justify the costs.
Some companies find the costs of implementing ABC to be prohibitive. If DCP Co believes that the difference in cost per unit of each product under ABC and traditional based costing systems is not material, it should not adopt ABC.
Distracters:
- ABC can be applied to all overheads, not just production overheads.
- The cost per unit provided under ABC principles will be more accurate.
- ABC costing will provide much better insight into what drives overhead costs.
2.2. Dạng 2: Target costing
Ref: Tóm tắt kiến thức Dạng 2: Target Costing
Câu 6: (1 minute) (Basic)
Question: Which of the following techniques is NOT relevant to target costing?
A. Value analysis
B. Variance analysis
C. Functional analysis
D. Activity analysis
Answer: B
Variance analysis is not relevant to target costing as it is a technique used for cost control at the production phase of the product life cycle. It is a feedback control tool by nature and target costing is feedforward.
Value analysis can be used to identify where small cost reductions can be applied to close a cost gap once production commences.
Functional analysis can be used at the product design stage. It ensures that a cost gap is reached or to ensure that the product design is one which includes only features which customers want.
Activity analysis identifies and describes activities in an organisation and evaluates their impact on operations to assess where improvements can be made.
Câu 7: (1 minute) (Basic)
Question: Which of the following statements about target costing is NOT true?
A. Target costing is better suited to assembly orientated industries than service industries that have a large fixed cost base.
B. Costs may be reduced in target costing by removing product features that do not add value.
C. A target cost gap is the difference between the target cost for a product and its projected cost.
D. Products should be discontinued if there is a target cost gap.
Answer: D
If there is a target cost gap that cannot be eliminated, management may consider whether or not to continue with the product, since it will not be achieving the required profit margin. However, a decision to discontinue a product, or whether to continue making it, should not be based on target costs or profit margins alone. Therefore the statement 'Products should be discontinued if there is a target cost gap' is NOT true and this is the correct answer.
For services that have a large fixed cost base, other methods of cost control may be more appropriate, such as activity-based management, and a key to reducing costs is often increasing sales volumes rather than reducing expenditure. To achieve a target cost, one approach is to remove design features from a product specification that do not add value for customers (so do not affect the price that customers are willing to pay).
Câu 8:
Question: In target costing, which of the following would be a legitimate strategy to reduce a cost gap for a product that existed in a competitive industry with demanding shareholders?
A. Increase the selling price
B. Reduce the expectation gap by reducing the selling price
C. Reducing the desired margin on the product
D. Mechanising production in order to reduce the average production cost
Answer: D
Answer A is not correct: increasing the selling price is not possible, the industry is competitive so the product will not sell effectively at higher prices.
Answer B (‘Reduce the expectation gap by reducing the selling price’) is not target costing.
Answer C (‘Reducing the desired margin on the product’) is not possible either: shareholders are demanding and would expect a good return.
Câu 9: (1 minute) (Basic)
Question: A company has a target mark up of 25% and sells into a competitive market where the market price is $120 per unit. The company's current costs per unit are $46 for variable costs and $60 for fixed costs, and it has a budgeted output of 10,000 units.
What are the target cost, target cost gap, and the minimum production required to close the target cost gap?
Guidance:
Step 1: Determine selling price
Step 2: Determine target profit
Step 3: Calculate target cost
Target cost = Selling price – Target profit
Step 4: Determine estimated cost
Step 5: Calculate target cost gap
Target cost gap = Estimated cost – Target cost
Step 6: Determine which cost need to be decreased
Step 7: Determine requirements to close target cost gap.
Answer:
Step 1: Determine selling price
Selling price = $120
Step 2: Determine target profit
Target profit = $120 x x (mark-up/(1+mark-up)) = $120 x 25/125 = $24
Step 3: Calculate target cost
Target cost = $120/125% = $96.
Step 4: Determine estimated cost
Estimated cost = Variable costs + fixed costs = $106
Step 5: Calculate target cost gap
Target cost gap = Estimated cost – Target cost = $106 - $96 = $10
Step 6: Determine which cost need to be decreased
Of this target cost, $46 is variable, $60 is fixed cost.
We need to have $10 decrease in fixed cost. So, the fixed cost needs to be $50
Step 7: Determine requirements to close the target cost gap.
The current budgeted fixed cost is $600,000 (10,000 units × $60) so if these are to be absorbed in $50/unit then the minimum production must be 12,000 units.
Câu 10:
Question: The predicted selling price for a product has been set at $56 per unit. The desired mark‐up on cost is 25% and the material cost for the product is estimated to be $16 before allowing for additional materials to allow for shrinkage of 20% (for every 10 kg of material going in only 8 kg comes out). If labour is the only other cost and 2 hours are needed what is the most the business can pay per hour if a cost gap is to be avoided?
Guidance: (There is no requirement for the target cost gap, so we can skip step 4 & step 5)
Answer:
Step 1: Determine the selling price
Selling price = $56
Step 2: Determine target profit
Target profit = $56 x (mark-up/(1+mark-up)) = $56 × 25/125 = $11.20
Step 3: Calculate target cost
Target cost = $56 - $11.20 = $44.80
Step 6: Determine which cost need to be decreased
We need new labour cost with the changes in material cost
Step 7: Determine requirements to close the target cost gap.
Target material cost = $16 × 10/8 = $20.00
Target labour cost = $44.80 - $20.00 = $24.80
Labour rate per hour = $24.80/2 = $12.40
2.3. Dạng 3: Lifecycle costing
Ref: Tóm tắt kiến thức Dạng 3: Life Cycle Costing
Câu 11:
Question: The following costs have arisen in relation to the production of a product:
1) Planning and concept design costs
2) Testing costs
3) Production costs
4) Distribution and customer service costs
In calculating the life cycle costs of a product, which of the above items would be included?
A. 3 only
B. 1, 2 and 3
C. 1, 2 and 4
D. All of the above
Answer: All of the above
A product's life cycle costs are incurred from its design stage through development to market launch, production, and sales, and finally to its eventual decline and withdrawal from the market.
Câu 12:
Question: Which of the following statements are true regarding the justification of the use of life cycle costing?
1) Product life cycles are becoming increasingly short. This means that the initial costs are an increasingly important component in the product’s overall costs.
2) Product costs are increasingly weighted to the start of a product’s life cycle, and to properly understand the profitability of a product these costs must be matched to the ultimate revenues.
3) The high costs of (for example) research, design, and marketing in the early stages in a product’s life cycle necessitate a high initial selling price.
4) Traditional capital budgeting techniques do not attempt to minimise the costs or maximise the revenues over the product life cycle.
A. 1,2 and 4
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2, 3 and 4
Answer: A
1) This is true, justifying the time and effort of life cycle costing.
2) As above.
3) This is not true: life cycle costing is not about setting selling prices, it is about linking total revenues to total costs. Even if it were about setting a selling price, the early sales may well be at a loss since it is TOTAL revenues and costs that are considered. Furthermore, the pre-launch costs are sunk at launch and are therefore irrelevant when setting a selling price. 4) This is true. The deliberate attempt to maximise profitability is the key to life cycle costing.
Câu 13: (1 minute) (Basic)
Question: Which of the following statements are true regarding the justification of the use of life cycle costing?
Year 1 Year 2 Year 3 Year 4
Units made and sold 5,000 10,000 25,000 10,000 $ $ $ $
What is the expected life cycle cost per unit (to two decimal places)?
Answer:
Total units = 50,000
Life cycle cost per unit = $92.00
Câu 14:
Question: Shoe Co, a shoe manufacturer, has developed a new product called the ‘Smart Shoe’ for children, which has a built-in tracking device. The shoes are expected to have a life cycle of two years, at which point Shoe Co hopes to introduce a new type of Smart Shoe with even more advanced technology. Shoe Co plans to use life cycle costing to work out the total production cost of the Smart Shoe and the total estimated profit for the two-year period.
Shoe Co has spent $5·6m developing the Smart Shoe. The time spent on this development meant that the company missed out on the opportunity of earning an estimated $800,000 contribution from the sale of another product.
The company has applied for and been granted a ten-year patent for the technology, although it must be renewed each year at a cost of $200,000. The costs of the patent application were $500,000, which included $20,000 for the salary costs of Shoe Co’s lawyer, who is a permanent employee of the company and was responsible for preparing the application.
The following information is also available for the next two years:
Other costs are expected to be as follows:
Shoe Co is still negotiating with marketing companies with regard to its advertising campaign, so is uncertain as to what the total marketing costs will be each year. However, the following information is available as regards the probabilities of the range of costs that are likely to be incurred:
Required:
1) Applying the principles of life cycle costing, calculate the total expected profit for Shoe Co for the two-year period.
2) Briefly discuss the benefits of life cycle costing for pricing, performance management and decision making
Answer:
1) Total sale revenue = (280,000 x $55) + (420,000 x $45) = $15.4m + $18.9m = $34.3m
Working 1:
Expected marketing cost in year 1: (0.2 x$2.2m) + (0.5 x $2.6m) + (0.3 x $2.9m) = $2.61m Expected marketing cost in year 2: (0.3 x$1.8m) + (0.4 x $2.1m) + (0.3 x $2.3m) = $2.07m Total expected marketing cost = $4.68m
Note:
The expected profit has been calculated using life cycle costing not relevant costing. Hence, the $20,000 salary cost included in patent costs should be included in the life cycle cost. Similarly, the opportunity cost of $800,000 is not included in life cycle costing whereas if the relevant cost was being used to decide on a particular course of action, the opportunity cost would be included.
2) The benefits of life cycle costing
Life cycle costing tracks and accumulates actual costs and revenues attributable to each product over the entire product life cycle.
The total profitability of any given product can be determined, meaning that prices can be set with better knowledge of the true costs.
Life cycle costing shows all costs relating to a product rather than costs relating to a single period, thus providing more accurate information for decision making.
The costs of researching, developing, and designing products are also taken into account. This will allow for more accurate analysis when measuring the performance of new products.
2.4. Dạng 4: Throughput accounting
Ref: Tóm tắt kiến thức Dạng 4: Throughput Accounting
Câu 15: (1 minute) (Basic)
Question: Which TWO of the following statements about throughput accounting and the theory of constraints are true?
A. A principle of throughput accounting is that a buffer inventory should be built up for output from the bottleneck resource.
B. Unless output capacity is greater than sales demand, there will always be a binding constraint. C. The production capacity of a bottleneck resource should determine the production schedule for the organisation as a whole.
C. Idle time should be avoided in areas of production that are not a bottleneck resource.
Answer: B, C
Output from a binding constraint should be used immediately, not built up as inventory because it is the factor that constrains output and sales. Some inventory may build up before the binding constraint, but the general principle in throughput accounting is that any inventory is undesirable.
The production capacity of a bottleneck resource should determine the production schedule for the organisation as a whole. This means inevitably that there will be the idle time in other parts of production where capacity is greater.
Câu 16: (1 minute) (Basic)
Question: The following statements have been made about throughput accounting.
1) Direct labour should always be treated as a factory cost when measuring throughput.
2) If machine time is the bottleneck resource, there is no value in taking measures to improve direct labour efficiency.
Which of the above statements is/are true?
A. 1 only
B. 2 only
C. Neither 1 nor 2
D. Both 1 and 2
Answer: D
Factory labour costs are always treated as a part of the factory cost/conversion cost of a product. Throughput accounting does not make a distinction between direct and indirect costs. It is also assumed that labour costs are a fixed cost, so if machine time is the bottleneck resource, nothing is gained by improving labour efficiency, because this will not increase throughput.
Câu 17:
Question: One of the products manufactured by a company is Product X, which sells for $40 per unit and has a material cost of $10 per unit and a direct labour cost of $7 per unit. The total direct labour budget for the year is 50,000 hours of labour time at a cost of $12 per hour. Factory overheads are $2,920,000 per year. The company is considering the introduction of a system of throughput accounting. It has identified that machine time is the bottleneck in production. Product X needs 0.01 hours of machine time per unit produced. The maximum capacity for machine time is 4,000 hours per year. What is the throughput accounting ratio for Product X (to 2 decimal places)?
Answer:
Throughput per unit of Product X = $(40 – 10) = $30
Throughput per bottleneck hour = $30/0.01 hours = $3,000
Factory costs per year = $2,920,000 + (50,000 × $12) = $3,520,000
Factory cost per bottleneck hour = $3,520,000/4,000 hours = $880
Throughput accounting ratio = $3,000/$880 = 3.41
Câu 18:
Question: The following data refers to a soft drinks manufacturing company that passes its product through four processes and is currently operating at optimal capacity.
Which process is the bottleneck?
A. Washing
B. Filling
C. Capping
D. Labelling
Answer: C. The capping is the bottleneck as it is the process that determines the maximum number of units which can be produced.
Câu 19:
Question:
Thin Co is a private hospital offering three types of surgical procedures known as A, B, and C. Each of them uses a preoperative injection given by a nurse before the surgery. Thin Co currently rent an operating theatre from a neighbouring government hospital. The Managing Director of Thin Co is keen to maximise profits and has heard of something called 'throughput accounting', which may help him to do this. The following information is available:
1) All patients go through a five-step process, irrespective of which procedure they are having. This process involves an adviser, nurse, anesthetist, surgeon, and recovery specialist.
2) The price of each of procedures A, B, and C is $2,700, $3,500, and $4,250 respectively.
3) The only materials' costs relating to the procedures are for the pre-operative injections given by the nurse, the anesthetic, and the dressings. These are as follows:
4) There are five members of staff employed by Thin Co. Each works a standard 40-hour week for 47 weeks of the year, a total of 1,880 hours each per annum. Their salaries are as follows:
- Adviser: $45,000 per annum;
- Nurse: $38,000 per annum;
- Anaesthetist: $75,000 per annum;
- Surgeon: $90,000 per annum;
- Recovery specialist: $50,000 per annum.
The only other hospital costs (comparable to 'factory costs' in a traditional manufacturing environment) are general overheads, which include the theatre rental costs, and amount to $250,000 per annum.
5) Maximum annual demand for A, B, and C is 600, 800, and 1,200 procedures respectively. Surgeon's hours have been correctly identified as the bottleneck resource. Time spent by the surgeon on each procedure is as follows:
Part hours are shown as decimals eg 0.24 hours = 14.4 minutes (0.24 × 60).
Required
a) Calculate the throughput accounting ratio for procedure C. Note. It is recommended that you work in hours rather than minutes. (5 marks)b) The return per factory hour for products A and B has been calculated and is $2,612.53 and $2,654.40 respectively. The throughput accounting ratio for A and B have also been calculated and is 8.96 and 9.11 respectively.
Calculate the optimum product (procedure) mix and the maximum profit per annum. (5 marks)
Guidance:
Step 1: Determine bottleneck resource
Step 2: Calculate Throughput per unit for each
Throughput per unit = Sales price - Material cost
Step 3: Calculate Throughput per unit of the bottleneck resource
Throughput per unit of bottleneck resource = Throughput per unit / Machine hours per unit Step 4: Calculate Factory cost per unit of the bottleneck resource
Factory cost per unit of bottleneck resource = Total factory cost/ Total unit of bottleneck resource Step 5: Calculate TPAR
TPAR = Throughput per unit of bottleneck resource/ Factory cost per unit of bottleneck resource Step 6: Rank products
In a throughput environment, production priority must be given to the products best able to generate throughput. That is those products that maximise throughput per unit of bottleneck resource.
Step 7: Allocate resources to establish an optimal production plan.
Answer:
a) Throughput accounting ratio for procedure C
Step 1: Determine bottleneck resource
Surgeon's hours is the bottleneck
Step 2: Calculate Throughput per unit for each product
Sales price = $4,250
Material cost = Injection cost + Aneasthetics + Dressing = 1,000 + 45 + 5.6 = 1,050.6
Throughput per unit = Sales price - Material cost = 3,199.40
Step 3: Calculate Throughput per unit of the bottleneck resource
Throughput per unit = 3,199.40
Machine hours per unit = 1.25
Throughput per unit of bottleneck resource = Throughput per unit / Machine hours per unit
= 3,199.40/1.25 = 2,559.52
Step 4: Calculate Factory cost per unit of the bottleneck resource
Total factory cost = All salaries + General overheads = $45,000 + $38,000 + $75,000 + $90,000 + $50,000 + $250,000 = $548,000
Total unit of bottleneck resource (Surgeon's hours) = 40 hours × 47 weeks = 1,880 hours.
Factory cost per unit of bottleneck resource = Total factory cost/ Total unit of bottleneck resouce = $548,000 / 1,880 hours = $291.49
Step 5: Calculate TPAR
TPAR = Throughput per unit of bottleneck resource/ Factory cost per unit of bottleneck resource = $2,559.52/$291.49 = 8.78
b) Optimum production plan
Step 6: Rank products
|
A |
B |
C |
|
|
TAR |
8.96 |
9.11 |
8.78 |
|
Ranking |
2nd |
1st |
3rd |
Step 7: Allocate resources to establish an optimal production plan.
The optimum product (procedure) mix per annum is as follows.
Total profit per annum is as follows:
2.5. Dạng 5: Environmental accounting
Ref: Tóm tắt kiến thức Dạng 5: Environmental Accounting
Câu 20:
Question: Different management accounting techniques can be used to account for environmental costs.
One of these techniques involves analysing costs under three distinct categories: material, system, and delivery and disposal.
What is this technique known as?
A. Activity‐based costingB. Life‐cycle costing
C. Input‐output analysis
D. Flow cost accounting
Answer: D
Under a system of flow cost accounting material flows are divided into three categories – material, system, and delivery and disposal.
Câu 21:
Question: Which TWO of the following statements about material flow cost accounting (MFCA) are correct?
1) Manufacturing costs are categorised into material costs, system costs, and delivery and disposal costs
2) MFCA records material inflows and balances this with outflows both in terms of physical quantities and, at the end of the process, in monetary terms too, so that businesses are forced to focus on environmental costs.
3) In MFCA, output costs are allocated between positive and negative product costs. 4) The aim of flow cost accounting is to increase the quantity of materials which, as well as having a positive effect on the environment, should have a positive effect on a company’s total costs in the long run.
A. 1 only
B. 1 and 3 only
C. None of them
D. All of them
Answer: B
Manufacturing costs are categorised into material costs, system costs, and delivery and disposal costs. After dividing material flows into three categories (material, system, and delivery and disposal costs), MFCA calculates the values and costs of each of these three flows. Output costs are allocated between positive products (good finished output) and negative product costs (costs of waste and emissions.)
The second statement is not correct: this is a definition of the input/output analysis method of accounting for environmental costs.
The fourth statement is not correct: The aim of flow cost accounting is to reduce the quantity of materials which, as well as having a positive effect on the environment, should have a positive effect on a business's total costs in the long run.
Câu 22:
Question: Which of the following should be categorised as environmental failure costs by an airline company?
1) Compensation payments to residents living close to airports for noise pollution caused by their aircraft
2) Air pollution due to airline’s carbon emissions from their aircraft engines
3) Penalties paid by the airline to the government for breaching environmental regulations
A. 2 only
B. 1, 2 and 3
C. 1 and 3
D. 2 and 3
Answer: B
Statement 1 mentions about noise pollution, which has an effect on people living near the aircraft. So, the company should have compensation payments for them.
In statement 2, air pollution is one of environmental pollution and the airline company has to pay for these environmental costs.
If the company does not follow the environmental regulations, it will pay for penalties. So, statement 3 is true.
Author: Quang Dung