15 Pages 3880 Words Business Performance Management


Question 1                    Total vestiges for Q2. (15 vestiges)

a)    Explain, using examples, why it is requisite to produce and use lithe budgets when evaluating departed operation of a improvement centre which manufactures and sells a fruit. What susceptibility be the concrete of such a operation evaluation.
3 vestiges

b)    When preparing a money budget for a manufacturing transaction for the forthcoming year, there may be manifold other budgets that succeed demand to be effected anteriorly the money budget is thoroughd. 
List three (3) other budgets that must be cheerful at the similar space or anteriorly the money budget is cheerful, and for each one, illustobjurgate the mitigated timing of money flows that succeed arise and how this succeed application a money budget.
3 vestiges

c)    Explain what is meant by the ‘untrammelled cycle’ for a manufacturing transaction and how this differs from the ‘money cycle’. How does brains all of the elements of the untrammelled and money cycle acceleration in managing afloat high efficiently? In you vindication, illustobjurgate the ratios and postulates we use to analyse the power of managing afloat high. 
3 vestiges

d)    Accounting isn’t as material in the legislation organisations as it is in secret enterprises, since the legislation does not accept to disquiet encircling earning a improvement. Do you assent? Explain.
3 vestiges

e)    What is the requisite aim of any costing arrangement? Explain.
3 vestiges
Question 2                        Total vestiges for Q4. (5 vestiges)

Wonder Products Pty Ltd institutes fragrant things to classify for customers. When quoting figures on jobs Wonder Products locate manufacturing overs on the cause of estimated agent hours to thorough the job. They locate negotiative over costs on the cause of straightforward labour hours estimated to thorough the job. 

Below is a budget for the floating year showing budget entirety figures.

Budget for the year
Direct labour costs for the year        $537,600
Manufacturing overs for the year      598,080
Administrative overs for the year      695,520

Direct labour hours for the year                14,000
Total agent hours for the year                 7,000

a) Calculate a manufacturing overs allocation objurgate for Wonder Products.
1 vestige

b) Calculate an negotiative over allocation objurgate for Wonder Products. 
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c) Bushy George has asked Wonder Products Pty Ltd to execute an specially marvelous fable to his specifications that succeed exact the forthcoming inputs: 

Direct materials     $19,000
Direct labour          750 hours
Machine manner     400 hours

Assuming a vestige up of 40% on entirety costs, what figure should be quoted to Bushy to institute him this specially marvelous fable?
1 vestige

d) Why is it so material to carefully locate over expenses when quoting on jobs or when generally deciding on figures? Discuss problems that are encountered delay over allocation methods and opinion approaches that susceptibility be captured.
1 vestige

e) Why do companies use predetermined (budgeted) over allocation objurgates rather than using explicit over costs in allocating over costs to units of fruit? Explain.
1 vestige

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