Material X does not, therefore, limit the activities of the organisation. The optimal solution to this linear programming problem is therefore: build 30 detached houses, and 10 town houses. Determining the optimal solution Having identified the feasible region we must find the optimal solution within this feasible region.
We can do this by drawing the objective function, which is to maximise contribution. We are not given the contribution for each product so we must therefore calculate it.
Job costing Job costing is a form of specific order costing and it is used when a customer orders a specific job to be done. Each job is priced separately and each job is unique. X1 machine date Date X1 Actual delivery date For example materials requisitions will be coded to a batch number to ensure that the cost of materials used is charged to the correct batch.
Test your understanding 1 Which of the following are characteristics of job costing? Once the total production costs of the job or batch have been established, a profit can be calculated and added to the total production costs. There are two main methods of calculating job and batch profits. The most popular requirement is for a folded leaflet made from a single sheet of A4 paper.
Required: a Calculate the selling price for 10, leaflets. The total budgeted direct labour hours for the period are 20, Calculate the price that should be quoted for Job The details of process costs and units are recorded in a process account which shows in very general terms the materials, labour and overheads input to the process and the materials output at the end of the process.
This is quite normal and usually happens when there are losses or gains in the process. Required: Calculate the average cost per unit in Process 1 and complete the process account and the scrap account. Expandable text Abnormal losses and gains Normal loss is the expected loss in a process.
Normal gain is the expected gain in a process. If the loss or the gain in a process is different to what we are expecting i. Balancing figure is abnormal loss or gain. At each stage in the process, ingredients are added, until the final stage of production when the cereal is boxed up ready to be sold. Required : Complete the process Account Expandable text Different degrees of completion For most processes the material is input at the start of the process, so it is only the addition of labour and overheads that will be incomplete at the end of the period.
There were no process losses. Required: Complete the process Account Expandable text Test your understanding 5 A firm operates a process costing system. Details of Process 2 for Period 1 are as follows. The balance of units was transferred to Finished goods. There was no opening WIP. In reality, this is unlikely to be the case.
Required: Prepare the process account for August using the weighted average method. Expandable text Test your understanding 6 A business makes one product that passes through a single process. The business uses weighted average costing. Calculate the following: a The value of the completed output for the period.
Details of Process 1 are as follows. All materials used are added at the beginning of the process. Labour costs and production overhead costs are incurred evenly as the product goes through the process. There were no losses. The company uses a FIFO method for valuing process costs. Calculate the total value of the units transferred to Process 2.
It is possible that losses or gains could be identified part way through a process. In such a case, EUs must be used to assess the extent to which costs were incurred at the time at which the loss was identified. Required: Prepare the process account for February. Joint products Joint products are two or more products separated in the course of processing, each having a sufficiently high saleable value to merit recognition as a main product.
The output figure represents all of the output from the process. Joint costs are apportioned on the basis of sales units. The following information is relevant. Calculate the total profit earned by Products A and B in the period, using the net realisable values net income to apportion joint costs.
Prepare the process account for December. It is also possible for production to be completed within a single accounting period and therefore the correct answer is C. We can ask the following questions about, e. Yes — the hotel provides a bed and possibly breakfast. You will judge the service of the hotel on how comfortable the bed was and how tasty the breakfast was. Yes — your stay at the hotel may vary each time you stay there.
You may not have such a comfortable bed and your breakfast may not be very tasty each time you visit. The standard of service is therefore variable because lots of different staff work at the hotel — the standard of the service you receive may depend on which staff are on duty.
In general, you cannot sleep in a hotel bed or eat breakfast at the hotel until you have booked in and made a contract to buy the services of the hotel. You cannot take your bed away with you, nor can you keep your breakfast — it must be eaten during the morning of your stay.
Test your understanding 1 List as many service industries that you can think of. In some situations it may be necessary to calculate a composite cost unit.
Required: Calculate the average cost per meal served and the average income per meal served. Expandable text Test your understanding 2 Which of the following are characteristics of service costing? Illustration 3 Service cost analysis The following figures were taken from the annual accounts of two electricity supply boards working on uniform costing methods.
You may have thought of others. Test your understanding 2 B Direct labour costs may be a high proportion on the total cost of providing a service and composite cost units are characteristic features of service costing. Budgets set out the costs and revenues that are expected to be incurred or earned in future periods.
This budget will determine where you go and for how long. The following budgets may also be prepared by organisations: — Departmental budgets. Budgets, if badly set, can also demotivate employees. Once this has been done, the budget committee can be formed, the budget manual can be produced and the limiting factor can be identified. The budget committee is responsible for communicating policy guidelines to the people who prepare the budgets and for setting and approving budgets.
It also gives details of the responsibilities of those involved in the budgeting process, including an organisation chart and a list of budget holders. Generally there will be one factor that will limit the activity of an organisation in a given period.
The entire budget preparation process may take several weeks or months to complete. The final stages are as follows. This master budget is then shown to top management for final approval. Comparisons between budgets and actual results are carried out and any differences arising are known as variances.
Budget preparation The preparation of budgets is illustrated as follows. This is why the sales budget is shown in Step 1. If the budget period is a year, then it will always reflect the budget for a year in advance. Continuous budgets are also known as rolling budgets.
Sales budgets We shall begin our preparation of functional budgets by looking at sales budgets. Sales budgets are fairly straightforward to prepare as the following illustration will demonstrate. Sales for next year are budgeted to be 5, units of PS and 1, units of TG. Required: Prepare the sales budget for the next year. Expandable text Test your understanding 1 A company makes two products — A and B. The products are sold in the ratio Required: Prepare the sales budget for the coming year.
Forecast sales for the coming year are 5, and 1, units repectively. The company has the following opening and required closing inventory levels. PS units TG units Opening inventory 50 Required closing inventory 1, 50 Required: Prepare the production budget for the coming year.
Expandable text Test your understanding 2 Newton Ltd manufactures three products. Support us and Our Work. Buy me a coffee. This Week's Popular Posts. Random Posts. Today's Most Visited Posts. If you are looking for free study materials to study for paper FM, you are right place!
You can download the latest study text book , short revision notes, exam practice kit, video lectures, and exam tips for paper FM Financial Management from this single page. A little request: Please do not share the study material directly with anyone. Use the sharing icons below to share the page with relevant students or simply copy the link. Click the download button below to download the latest Kaplan study text for paper Financial Management in pdf format. That doesn't mean you have to blindly pay whatever your insurer quotes though, as there are several simple things you can do to reduce the cost of your premiums.
The internet makes it easy to compare prices from different insurers, so why not take advantage of this? The higher the discount available, the more you could save. Also look at insurers offering a 'no claims bonus for life' feature, where your current discount level can be fixed forever, even if you have to make a claim somewhere down the line. Choosing to have a higher than standard excess level will usually mean lower premiums. Parking you car off-road, for example on a driveway or in a garage, will also mean a cheaper policy.
Pay annually if you can afford it to avoid this, or look for one of the companies that don't charge extra for monthly payment. Even if you can't reduce your mileage, make sure you're not overestimating how much you actually do drive, and give your insurer an accurate figure.
Reduce the number of people insured to drive your car to the minimum possible, and try to get the policy in the name of a driver with the lowest risk profile. For example, if a car is driven by both a man and a woman, insuring it in the woman's name will often result in a cheaper quote. Li Our Online Resources are designed to augment the flexibility of your learning.
It is our resources are subscribing to find online:. In line, offering at all times electronic access any clearance. You can practice what you have learned increased even more. The results of the test. Review key performance issues for them the plot of them.
The achievement of Course that his team Peer. Ask your Customer Support Services local vain customer service, that is, you are no longer a subscriber ran UN. In relation to the tax regime applicable to individuals, Alley individual companies of the Company.
Incidence of insurance national contributors vain to employees, employers of companies that. The differences between government ACCA Study Text and public institutions, listed companies State-funded governmental institutions or taxpayers While public companies are financed with debt and equity. Government institutions are managed by public officials as members of the Board of Directors manager.
A listed company is led by a board of Board members who all tend to be professional managers. We encourage you to buy the latest study materials from their respective publishers. Save my name, email, and website in this browser for the next time I comment. Pls I was hoping I would see notes for f2 to download from kaplan and bap? Pls can u help fix the link?
Hi thanks for uploading these study materials for us,if it s not too much trouble I wanted to kindly ask you to update the BPP study paper F2. Best regards. Hi there, Can you please upload the latest study materials for AFM, both the study text and exam practice kits. Thanks with regard. Highly appreciated.
0コメント