《成本会计（MA1）》课程教学大纲

《ManagerialAccountingⅠ》课程教学大纲课程代码：10131074课程性质：专业必修课程授课对象：CGA专业开课学期：春/秋总学时：54学时学分：3学分讲课学时：54学时实验学时：实践学时：指定教材：RayH.Garrison,EricW.Noreen,PeterC.Brewer,NamSangCheng,KatherineC.K.Yuen,《ManagerialAccounting》,AnAsianPerspective,McGraw-Hill，2014Edition.IFACCodeofEthicsforProfessionalAccountants,2012Edition参考书目（五号黑体）RayHGarrison，《ManagerialAccounting》,McGraw-HillCompanies,Inc,201412thEdition.CharlesT.Horngren，《CostAccounting-AManagerialEmphasis》，PrenticeHall,Inc,201210thEdition.RobinCooper，《TheDesignofCostManagementSystemTextandCases》,1999Edition.RonaldW.Hilton，《ManagerialAccounting–CreatingValueinaDynamicBusinessEnvironment》，McGraw-HillCompanies,Inc,20125thEdition.Hansen&Mowen，《CostManagement-AccountingandControl》，McGraw-HillCompanies,Inc,20134thEdition.KenBlack，《BusinessandEconomicStatisticsUsingMicrosoftExcel》,ThomsonLearning，Inc，2012Edition.DavidWhigham，《ManagerialEconomicsUsingExcel》,ThomsonLearning，Inc，2011Edition.孟焰,《成本管理会计》，高等教育出版社，2016年；乐艳芬,《成本管理会计》，复旦大学出版社，2014年；孙茂竹、于福生，《成本管理会计》，中国人民大学出版社，2013年。教学目的：ManagementAccountingFundamentals[MA1]isthefirstoftwomandatorycoursesinthemanagementaccountingstreamintheCGAprogramofprofessionalstudies.Thecoursepresentsanintroductiontothemainconceptsandpracticesofmanagementaccounting.Thepurposeofmanagementaccountingistoprovidemanagersofalltypesoforganizationswiththeinformationtheyneedtoconducttheaffairsofthoseorganizations.Managementaccountingisamajorinformationsourceforshort-termandlong-termoperationalplanning,aswellasforfinancialaccounting.Computerspreadsheetshavebeenintegratedintothecourse.Lesson1Accounting,business,andcompetitiveness课时：第1-2周，共4.5课时教学内容Lesson1explainsthemanager’sneedforaccountinginformationanddistinguishesbetweenfinancialaccountingandmanagerialaccounting.Thelessoncomparesandcontrastsproductandperiodcosts,variableandfixedcosts,directandindirectcosts,anddifferential,opportunity,andsunkcosts.Thelabourcostsassociatedwithidletime,overtime,andfringebenefitsareproperlyclassified.1.1Informationneedsofmanagersandotherusers1.2Comparingfinancialandmanagerialaccounting1.3Organizationstructure1.4Processmanagement1.5Internationalethicalstandards1.6Generalcostclassifications1.7Costclassificationonfinancialstatements1.8Costclassificationforcostbehaviourpatterns1.9Costclassificationfordecisionmaking1.10Labourcostsclassification1.11Job-orderandprocesscostingsystems思考题：Assignment1Lesson2Costbehaviourandcost-volume-profitanalysis课时：第2-3周，共4.5课时教学内容Lesson2presentsthreetypesofcostbehaviour—variable,fixed,andmixed—andthreemethodsofseparatingamixedcostintoitsvariableandfixedelements.Thelessonalsocoverscost-volume-profit(CVP)analysis,theinterrelationshipoffivekeyelementsthattogetherinfluencearangeofmanagementdecisions.Theseelementsareproductprice,volumeofactivity,perunitvariablecosts,totalfixedcosts,andmixofproductssold.2.1Typesofcostbehaviourpatterns2.2Totalcostfunctionandcostbehaviourassumptions2.3Analysisofmixedcosts2.4Thecontributionformat2.5Computerillustration2-1:Regressionanalysis2.6Basicsofcost-volume-profitanalysis2.7ManagerialusesofCVPanalysis2.8OperatingleverageandCVPanalysis2.9MultipleproductsandCVPanalysis2.10Computerillustration2-2:CVPsensitivityanalysis思考题：Assignment2Lesson3Absorptionversusvariablecostingandrelevantcostsfordecisionmaking课时：第4-5周，共4.5课时教学内容Lesson3presentsthemeritsandapplicationsofabsorptionandvariablecosting.Themethodofvariablecostingisexplained,includingtheissueofreconcilingabsorptioncostingwithvariablecosting.ThelessonlooksattheimpacttheJITinventorysystemshaveonabsorptionandvariablecosting.Thislessonalsodealswithoneofthecentralpurposesofmanagerialaccounting:providinginformationfordecisionmaking.Thetopicofeconomicorderquantity(EOQ)isintroduced.3.1Absorptionandvariablecosting3.2Incomecomparisonofabsorptionandvariablecosting3.3Netincomedifferencesextended3.4Overallassessment3.5Internationalsurveysofcompanypractice3.6Costconceptsfordecisionmaking3.7Identifyingrelevantinformation3.8Thespecialsalesorder3.9Makeorbuy(outsourcing)decisions3.10Addingordroppingaservice,product,ordepartment3.11Jointproducts:Sellorprocessfurther3.12Decisionsinvolvinglimitedresources3.13Inventorydecisions3.14Computerillustration3-1:Relevantcosts3.15Computerillustration3-2:Economicordersize思考题：Assignment3Lesson4Activity-basedcostingandservicedepartmentcosting课时：第5-6周，共4.5课时教学内容Lesson4studiesthemeritsandapplicationofactivity-basedcostingandservicedepartmentcosting.Theactivity-basedcostingsystemiscoveredindepth,beginningwiththeinitialdesignofthesystem,followedbyanillustrationofitsapplication.Theallocationofoverheadcostsincurredbyservicedepartmentsisalsoexplained.4.1Overheadcostinginthenewmanufacturingenvironment4.2Designofanactivity-basedcostingsystem4.3Activity-basedcostingillustrated4.4Whentouseanactivity-basedcostingsystem4.5Aninternationalperspectiveonactivity-basedcosting4.6Computerillustration4-1:Activity-basedcosting4.7Methodsforcostallocation4.8Servicedepartmentscostallocationillustrated4.9Allocatingcostsbybehavior4.10Costallocation:Otherconsiderations4.11Computerillustration4-2:Stepmethodanddirectmethodofcostallocation思考题：Assignment4Lesson5Determiningcostsofproducts—Job-ordercosting课时：第7-8周，共4.5课时教学内容Lesson5introducesthedistinctionsbetweentwomethodsofdeterminingunitcostsofproduction:job-ordercostingandprocesscosting.Thelessonpresentsanoverviewofthedesignandoperationofajob-ordercostingsystem.Particularattentionisgiventotheproceduresforassigningoverheadcoststounitsofproduct.Theflowofcoststhroughthesystemisillustratedforatypicalmanufacturingcompany,andsomeoftheproblemsofoverheadapplicationareaddressed.5.1Assignmentofdirectandindirectcosts5.2Plant-wideanddepartmentalmanufacturingoverheadrates5.3Budgetedoverheadrates5.4Job-ordercosting—Anoverview5.5Job-ordercosting—Theflowofcosts5.6Problemsofoverheadapplication5.7Scrapandrework5.8Job-ordercostingintheservicesector5.9Computerillustration5-1:Costschedules思考题：Assignment5Lesson6Determiningcostsofproducts—Processcosting课时：第8-9周，共4.5课时教学内容Lesson6presentsprocesscostflows,workingthroughadetailedexampleofprocesscosting.Theweighted-averageandFIFOmethodsofaccountingforcostflowsareexplainedandevaluatedinthecontextoftheproductionreport.Thelessonalsodescribeshowtodealwithshrinkage,spoilage,andlostunitsinaprocesscostingsystem.Itthenlooksbrieflyatinnovationsincostingsystemsintheever-changingbusinessenvironment.6.1Aperspectiveofprocesscostingandprocesscostflows6.2Equivalentunitsofproduction6.3Productionreport—Weighted-averagemethod6.4Productionreport—FIFOmethod6.5Spoilageandlostunits6.6Operationcosting6.7Surveysofpractice6.8Computerillustration6-1:Productionreport—Weighted-averagemethodandFIFOmethod思考题：Assignment6Lesson7Themasterbudget课时：第10-11周，共4.5课时教学内容Lesson7describestheusesofvarioustypesofbudgetsintheplanningprocess.Themasterbudgetisbasedontheconceptofstaticorfixedbudgetgearedtoonlyonelevelofactivity.Thebudgetpreparationstepsareworkedthrough,leadingintopreparingmasterbudgetsandbudgetinginnot-for-profitentities.7.1Overviewofthebudgetingprocessandthemasterbudget7.2Preparingthemasterbudget7.3Otherbudgetingtechniques7.4Internationalaspectsofbudgetingandcontrol7.5Computerillustration7-1:Salesbudgetandcashcollectionschedule思考题：Assignment7Lesson8Flexiblebudgetsandstandardcostsformaterials,labour,andoverhead课时：第11-12周，共4.5课时教学内容Lesson8presentstheconceptofaflexiblebudget,whichcanbeadaptedforanylevelofactivitywithinacertain(relevant)range.Theanalysisoffixedoverheadcostsvarianceisexplainedandillustrated.Thepresentationofvariancesontheincomestatementisalsocovered.Thislessonalsofocusesonstandardcostanalysis,atechniqueusedbymanagementtomonitorandcontroltheinputcostsandquantitiesofmaterials,labour,andvariableoverhead.8.1Flexiblebudgets8.2Determinationofvariancesforperformanceevaluation8.3Standardcosts—Managementbyexception8.4Settingstandardcosts8.5Usingstandardcosts8.6Mixandyieldvariances8.7Computerillustration8-1:Fixedcostsinaflexiblebudget8.8Fullincomestatementvarianceanalysis8.9Operatingperformancemeasures思考题：Assignment8Lesson9Decentralizedoperations,responsibilityaccounting,andtransferpricing课时：第13-14周，共4.5课时教学内容Lesson9considersresponsibilityaccountingandtheimportanceofdecentralizationinaresponsibilityaccountingsystem.Thelessonlooksatthedifferencebetweencostcentres,revenuecentres,profitcentres,andinvestmentcentres.Withthecontinuingtrendtowarddecentralizationandbusinessintegrationintheglobalarena,transferpricinghasbecomemoresignificantinmanagementaccounting.9.1Decentralizationconcept9.2Responsibilityaccounting9.3Rateofreturnandresidualincome9.4Transferpricing9.5Computerillustration9-1:Transferpricing思考题：Assignment9Lesson10Pricingandtrendsinmanagementaccounting课时：第14-15周，共4.5课时教学内容Lesson10focusesonthepricingdecision.Aspectsofpricingthatarecoveredincludecostpluspricingformulas,theabsorptionandcontributionapproachestocost-pluspricing,targetcosting,andtimeandmaterialpricing.Qualitymanagementandthecostsofqualityandreportingofqualitycostsareexplained.10.1Pricingpolicies:Anoverview10.2Cost-basedpricing10.3Targetcostingandpricing10.4Computerillustration10-1:Pricing10.5Otherpricingpolicies10.6Qualitymanagementandqualitycostreporting10.7Concludingcomment思考题：Assignment10

LESSON1 AssignmentNote:Formultiple-choicequestions,identifythebestresponse.Answereachitembygivingtheletterofyourchoice.Forexample,if(4)isthebestanswerfor(a),writea(4)asyouranswer.Selectonlyoneanswerforeachitem.Ifmorethanoneanswerisgiven,itwillnotbemarked.Incorrectanswerswillbemarkedaszero.Nomarkswillbegiventoanyexplanationyouoffer.Question1(42marks)Multiplechoice(2markeach)a. Whichofthefollowingstatementsaboutmanagerialaccountingistrue?1) Managerialaccountinginformationispreparedforexternalusers. 2) Managerialaccountinginformationisalegalrequirement.3) Thestructureofmanagerialaccountingpracticeisrelativelyflexible.4) Therearestructuredstandardsofacceptabilityformanagerialaccounting.b. Whichofthefollowingstatementsisincorrectwithregardtoamanufacturingfirm?Inventoriablecostsincludeonlyprimecosts.Inventoriablecostsincludeprimecostsandmanufacturingoverheadcosts.Inventoriablecostsincludebothvariablemanufacturingandfixedmanufacturingcosts.Inventoriablecostswillneverincludeanyperiodcosts.c. CrandallCompanymanufacturesavarietyofproducts.Thecontrollerisconsideringhowtoaccountforlabourfringebenefits.WhichofthefollowingmethodsprovidesthebestmeasureoftherelativecostofmanufacturingCrandall’sdifferentproducts?1) Treatalllabourfringebenefitsasindirectlabourbyaddingthetotaltomanufacturingoverhead.2) Treatalllabourfringebenefitsasdirectlabour.3) Treatlabourfringebenefitsthatrelatetodirectlabourasadditionaldirectlabourcostandtreatfringebenefitsthatrelatetoindirectlabouraspartofmanufacturingoverhead.4) Treatlabourfringebenefitsasperiodexpensesandexpensethesecostsasincurred.d. Inthecontextofmakingadecision,whichofthefollowingstatementsregardingrelevantcostsisincorrect?1) Anopportunitycostisarelevantcost.2) Atraceablefixedcostisarelevantcost.3) Avariablecostisarelevantcost.4) Asunkcostisarelevantcost.e. Whichofthefollowingfunctionsofmanagementcomparesplannedresultswithactualresults?1) Planning2) Directingandmotivating3) Controlling4) Decisionmakingf. Whendistinguishingbetweenfixedcostsandvariablecosts,whichofthefollowingstatementsistrue?1) Asproductionrises,variablecostsperunitwillfall.2) Asproductionrises,totalfixedcostswillrise.3) Asproductionfalls,fixedcostsperunitwillrise.4) Asproductionfalls,variablecostsperunitwillfall.g. Whichofthefollowingareincludedinmanufacturingoverhead?1) Alldirectmaterial,directlabour,andadministrativecosts2) Allmanufacturingcostsexceptdirectlabour3) Allmanufacturingcostsexceptdirectlabouranddirectmaterials4) Allsellingandadministrativecostsh. Whichofthefollowingstatementsdescribesthetreatmentofperiodcosts?1) Theywillneverconstitutepartofthecostofgoodsmanufacturedstatementbutwillalwaysbepartoftheincomestatement.2) Theywillalwaysbepartofthecostofgoodsmanufacturedstatement. 3) Theywillneverconstitutepartofthecostofgoodsmanufacturedstatementorbepartoftheincomestatement.4) Theywillonlybeincurrediftheproductismadeinthecurrentperiod.i. Whatcriterionisusedinmakingthedistinctionbetweenindirectanddirectcosts?1) Whetheracostdiffersbetweenalternatives2) Whetheracostisvariableorfixed3) Whetheracostisaproductoraperiodcost4) Whetheracostcanbeeasilytracedtothecostobjectunderconsiderationj. BufordCompanyrentsoutasmallunusedportionofitsfactorytoanothercompanyfor€1,000permonth.Therentalagreementwillexpirenextmonth,andratherthanrenewtheagreement,BufordCompanyisthinkingaboutusingthespaceitselftostorematerials.Whattermisusedtodescribethe€1,000permonth?1) Sunkcost2) Periodcost3) Variablecost4) Opportunitycostk. Amachinewaspurchasedin20X6tomakeexperimentalboards.Themachineisstillbeingusedinthemanufactureofthenewboard.Whattermisusedtodescribethecostofthismachinein20X9?1) Opportunitycost2) Sunkcost3) Differentialcost4) PeriodcostNote:Questions(l)through(n)arebasedonthefollowinginformationpertainingtoHailey’smanufacturingoperations:Inventories January1,2011 December31,2012Directmaterials € 30,000 € 20,000Workinprogress 30,000 25,000Finishedgoods 28,000 35,000Additionalinformationfor2011:Directmaterialspurchased € 110,000Directmanufacturinglabourpayroll 90,000Directmanufacturinglabourrateperhour 10Factoryoverheadrateperdirectmanufacturinglabour-hour 7l. For2011,whatwastheprimecost?1) € 90,0002) €120,0003) €170,0004) €210,000m. For2011,whatwastheconversioncost?1) € 90,0002) €153,0003) €183,0004) €200,000n. For2011,whatwasthecostofgoodsmanufactured?1) €35,0002) €268,0003) €273,0004) €278,000o. Inthepreparationofthescheduleofcostofgoodsmanufactured,theaccountantincorrectlyexcludedaspartofmanufacturingoverheadthejanitorialexpenseofthefirm’sfactory.Whatimpactwillthiserrorhaveonthefinancialstatements?1) Itwilloverstateperiodexpensesontheincomestatement.2) Itwilloverstatethecostofgoodssoldontheincomestatement.3) Itwillunderstatethecostofgoodsmanufactured.4) Itwillhavenoeffectonthecostofgoodsmanufactured.Note:AnswerQuestions(p)and(q)usingthefollowingselecteddataforMarch,takenfromRykerCompany’sfinancialstatements:Costofgoodsavailableforsale € 61,000Manufacturingoverhead 25,000Costofgoodsmanufactured 51,000Finishedgoodsinventory—ending 10,000Directmaterialsused 20,000Sales 115,000Sellingandadministrativeexpenses 30,000Directlabour 15,000Work-in-progressinventory—beginning 8,000p. WhatwasthegrossmarginforMarch?1) €20,0002) €34,0003) €50,0004) €64,000q. Whatwasthework-in-progressinventoryattheendofMarch?1) €02) € 9,0003) € 17,0004) € 60,000r. DoneandBradsweet,LLC,isaprofessionalaccountingservicescompany.In2012,thefirmincurred$76,000inpromotionexpenses.Ofthis,$61,000wasforactivitiesrelatedtoentertainingpotentialclientsandincludedchargesforhotelstaysandtransportationforclientsandmanagementtocorporateheadofficetopromotethefirmanditsservices.Some,butnotall,oftheseclientssubsequentlyengagedtheservicesofthecompanyduringtheyear.Theremaining$15,000wasspentonadvertisingthefirminprintandtelevisionmediainEurope.

Whichofthefollowingstatementsiscorrect?1) $76,000representsaperiodcost.2) $76,000representsaproductcost.3) $61,000isaproductcostand$15,000isaperiodcost.4) $61,000isadirectcostand$15,000isanindirectcost.Note:AnswerQuestions(s)and(t)usingthefollowingdatafromtheBonnieCompanyforthemonthofNovember2012:Inventories 11/1/2012 11/30/2012Rawmaterials € 19,000 € ?Workinprogress 12,000 14,000Finishedgoods ? 9,000Additionaldata:Salesrevenue € 106,000Directlabourcosts 10,000Manufacturingoverheadcosts 11,000Sellingexpenses 12,000Administrativeexpenses 18,000s. IfthecostofrawmaterialspurchasedinNovemberwas€14,000andthecostofgoodsmanufacturedwas€40,000,whatwastheinventoryofrawmaterialsonNovember

30?1) €12,0002) €14,0003) €16,0004) €19,000t. IfthecostofgoodsmanufacturedforNovemberwas€40,000andnetincomewas€41,000,whatwasthefinishedgoodsinventoryonNovember1?1) € 1,0002) € 4,0003) €32,0004) €35,000

u. Atasalesvolumeof40,000units,CarneCompany’stotalfixedcostsare€40,000andtotalvariablecostsare€40,000.Therelevantrangefortheproductis30,000to50,000units.Ifthecompanyweretosell42,000units,whatwouldbethetotalexpectedcost?1) €73,6002) €80,0003) €82,0004) €90,000Question2(12marks)WhatisthemajorintentionoftheIFACCodeofEthicsforProfessionalAccountants?DescribetheCode’sfivefundamentalprinciples.Question3(20marks)Severalyearsago,4RCompanypurchasedasmallbuildingadjacenttoitsmanufacturingplantinordertohaveroomforexpansionwhenneeded.Sincethecompanyhadnoimmediateneedfortheextraspace,thebuildingwasrentedouttoanothercompanyforarentalrevenueof$40,000peryear.Therenter’sleasewillexpirenextmonthand,ratherthanrenewingthelease,4RCompanyhasdecidedtousethebuildingitselftomanufactureanewproduct.Directmaterialscostforthenewproductwilltotal$40perunit.Itwillbenecessarytohireasupervisortooverseeproduction.Hersalarywillbe$2,500permonth.Workerswillbehiredtomanufacturethenewproduct,withdirectlabourcostamountingto$18perunit.Manufacturingoperationswilloccupyallofthebuildingspace,soitwillbenecessarytorentspaceinawarehousenearbyinordertostorefinishedunitsofproduct.Therentalcostwillbe$1,000permonth.Inaddition,thecompanywillneedtorentequipmentforuseinproducingthenewproduct;therentalcostwillbe$3,000permonth.Thecompanywillcontinuetodepreciatethebuildingonastraight-linebasis,asinpastyears.Depreciationonthebuildingis$10,000peryear.Advertisingcostsforthenewproductwilltotal$50,000peryear.Costsofshippingthenewproductwillbe$10perunit.Electricalcostsofoperatingmachineswillbe$2perunit.Tohavefundstopurchasematerials,meetpayrolls,andsoforth,thecompanywillhavetoliquidatesometemporaryinvestments.Theseinvestmentsarepresentlyyieldingareturnof$6,000peryear.RequiredPrepareananswersheetwiththefollowingcolumnheadings:CostitemVariablecostFixedcostProductcostPeriodcostOpportunitycostSunkcostDirectmaterialsDirectlabourManufacturingoverhead Listthedifferentcostsassociatedwiththenewproductdecisiondowntheextremeleftcolumn(under“Costitem”).ThenplaceanXundereachheadingthathelpstodescribethetypeofcostinvolved.TheremaybeXsunderseveralcolumnheadingsforasinglecost.(Forexample,acostmaybeafixedcost,aperiodcost,andasunkcost;youwouldplaceanXundereachofthesecolumnheadingsoppositethecost.)Question4(11marks)Calista’sPastaisapastacompanyinCecilia,Italy.Theowner,AndrewCalista,wantstoidentifythevariouscostsincurredeachyearinordertoplanandcontrolthebusinesscosts.Thecompany’scostsforthelastyearareasfollows(€000’s):Utilitiesfortheplant €1,000Salaries—directlabour 11,000Pastaequipmentmaintenance 800Depreciation—property,plantandequipment 1,000Uniforms 400Directmaterials 9,500Insurancefortheplant 300President’ssalary 15,000Rent—administrativeoffices 4,000Administrativecosts 9,000Advertisingandsellingexpenses 6,500Boxesandbagsusedinpastapackaging 6,000Idletime 600Overtimepremiums—directlabour 3,500Fringebenefits—direct 2,000Fringebenefits—indirectlabour 1,400Totalcosts € 72,000Requireda. (4

marks)Dividethetotalexpensesof€72,000,000intotwocategories:productandperiodcost.b. (7marksintotal)Thepresident,AndrewCalista,isplanningtoexpandhisbusinessintoGreeceandSpain.Thisexpansionwillnotrequireadditionalpastafacilities,butdirectmaterialsandlabourwillincreasesignificantly.BothGreekandSpanishauthoritieswillrequirespecificdocumentationandinspectionsforthegoodstogetentryapproval.Thiswillbeanadditionalcosttotakeintoconsideration.(i) (3marks)Aretheseadditionalcostsproductorperiodcosts?(ii) (4marks)ExplaintoAndrewCalistawhetheralltheseadditionalcostsarerelevanttothedecisiontoexpandhisbusinesstoGreeceandSpain.Question5(15marks)InternationalBeansInc.hasjustcompletedayearofoperationsandthecontrollerhascalledameetingfortomorrowmorning.Astheassistantcontrolleryouareaskedtopreparethefollowing:scheduleofcostofgoodsmanufacturedincomestatementThesewillbepresentedtotheexecutivecommitteeatthemeeting.Unfortunately,youcannotgetaccesstothecompany’sgeneralledgersystem.However,youwereabletofindinformationonendinginventoriesfromlastyear’sreports,andyouhavepapercopiesofinventorycountstakenattheendofthisyear.Hereiswhatyoufound:BeginningEndingDirectmaterials$65,000$60,000Workinprogress80,00090,000Finishedgoods130,000160,000Youwerealsoabletogatherthefollowingadditionalinformation:Purchaseofrawmaterials(alldirectmaterials)$6,720,000Utilitybillsincurredinthefactory400,000Directlabour793,000Indirectlabour190,000Sellingandadministrativesalaries190,000Maintenancecostsincurredinthefactory350,000Indirectmaterialsusedinmanufacturing120,000Advertisingcostsincurred230,000Miscellaneoussellingandadministrativecostsincurred150,000Salesfortheyear13,020,000Depreciationexpense(Note1)850,000Rentalcostsonthebuildings(Note2)$1,020,000Note1:Depreciationexpense:90%relatestofactoryassets,andtheremainderrelatestosellingandadministrativeassets.

Note2:Rentalcostsonthebuildings:85%ofthespaceisoccupiedbythefactoryand15%isoccupiedbysalesandadministration.Required a. (8marks)Prepareascheduleofcostofgoodsmanufacturedfortheyear.b. (7marks)Prepareanincomestatementfortheyear.

LESSON2 AssignmentQuestion1(14marks)ComputerquestionDetmerHoldingsAGofZurich,Switzerland,hasjustintroducedanewfashionwatchforwhichthecompanyistryingtofindanoptimalsellingprice.Marketingstudiessuggestthatthecompanycanincreasesalesby4,000unitsforeachSFr2perunitreductioninthesellingprice.(SFr2denotes2Swissfrancs.)Thecompany’spresentsellingpriceisSFr95perunit,andvariableexpensesareSFr65perunit.FixedexpensesareSFr800,000peryear.Thepresentannualsalesvolume(attheSFr95sellingprice)is26,000units.Requireda. (3marks)Whatisthepresentyearlynetincomeorloss?b. (3marks)Whatisthepresentbreak-evenpointinunitsandinSwissfrancsales?c. (4marks)Assumingthatthemarketingstudiesarecorrect,whatisthemaximumprofitthatthecompanycanearnyearly?Athowmanyunitsandatwhatsellingpriceperunitwouldthecompanygeneratethisprofit?d. (4marks)Whatwouldbethebreak-evenpointinunitsandinSwissfrancsalesusingthesellingpriceyoudeterminedinrequirementcabove(forexample,thesellingpriceatthelevelofmaximumprofits)?Whyisthisbreak-evenpointdifferentfromthebreak-evenpointyoucomputedin

requirementaabove?UsetheproceduredescribedbelowtocompleteworksheetL2Q1.Fromthisworksheet,answerthefourrequirementsfortheproblem.Procedure1. OpenthefileMA1L2Q1.2. Observethelayoutoftheworksheet.NoticethatcellsA5toE15containadatatable.3. Completetheincomestatementinrows19to23,usingthevaluesinthedatatabletocalculatethenetincome.4. Completethebreak-evenanalysisforrequirementbbyenteringappropriateformulasincellsE28andE30.5. Aspartofthesolutiontorequirementc,completetheincome-volumesensitivityanalysistableinrows38to46.Notethatyoushouldenterformulasratherthanactualvaluesinthesecells.6. Saveacopyofyourcompletedworksheet.7. CopyandpastecellsA17toG48intoyourassignmentWorddocument.8. Displaytheformulasinyourcompletedworksheet.CopyandpastetheformulasincellsA17toG48intoyourassignmentWorddocument.Question2(14marks)ComputerquestionBeforecompletingthisquestion,youshouldworkthroughComputerillustration

2-1inthelessonnotes.Inthepast,BigPineyResorthashadgreatdifficultyinpredictingitscostsatvariouslevelsofactivitythroughtheyear.Thereasonisthatthecompanyhasneverattemptedtostudyitscoststructurebyanalysingcostbehaviourpatterns.Thepresidenthasnowbecomeconvincedthatsuchananalysisisnecessaryifthecompanyistomaintainitsprofitsanditscompetitiveposition.Accordingly,ananalysisofcostbehaviourpatternshasbeenundertaken.Thecompanyhasmanagedtoidentifyvariableandfixedcostsinallareasofitsoperationexceptforfoodservices.Costsinthisareadonotseemtoexhibiteithera