Accounting for Managers: Interpreting accounting information for decision-making

QUESTIONS 397 Product Hekla uses £100 of direct materials and £75 of direct labour. In addition, each Hekla has been identified ...

398 ACCOUNTING FOR MANAGERS Table A1.5 Brixton Industries activity cost pools and drivers Cost pool £ Cost Cost driver Quantity ...

QUESTIONS 399 Questions for Chapter 12 12.1 The Whitton Co. has an opportunity to buy a computer now for £18,000 that will yield ...

400 ACCOUNTING FOR MANAGERS on the value of the investment at the beginning of each year). The cash flows from theprojectareexpe ...

QUESTIONS 401 13.4 Anston Industries is the manufacturing division of a large multinational. The divisional general manager is a ...

402 ACCOUNTING FOR MANAGERS Use ROI and RI calculations to: ževaluate the current performance of each division; and ževaluate wh ...

QUESTIONS 403 The selling expense recharged from the sales department is £15,000 per month for the first half year, thereafter £ ...

404 ACCOUNTING FOR MANAGERS Mega Stores’ finance director has produced a budget, which has been approved by the board of directo ...

QUESTIONS 405 a Prepare a traditional budget versus actual report using the above figures. b Prepare a flexible budget for Garga ...

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Appendix 2 Solutions to Questions Solutions for Chapter 6 6.1 Kazam Services’ accounting records are shown in Table A2.1. Kazam ...

Table A2.1 Fixedassets Debtors Bank Creditors Long-term loan Capital Income Expenses Opening balance + 500,000 + 125,000 − 35,00 ...

SOLUTIONS TO QUESTIONS 409 Capital 200,000 Profit and Loss account 30,000 230,000 6.2 See Table A2.2. 6.3 Answer e: Although the ...

410 ACCOUNTING FOR MANAGERS Table A2.4 Sales 1,100,000 Less cost of sales Opening stock 150,000 Purchases 650,000 800,000 −Closi ...

SOLUTIONS TO QUESTIONS 411 c Depreciation Depreciation is 20% of £12, 000 =£2,400 p.a. or £200/mth. As depreciation is charged f ...

412 ACCOUNTING FOR MANAGERS Operating profit/sales profit before interest and tax sales 27. 2 141. 1 = 19 .3% 29. 5 138. 4 = 21 ...

SOLUTIONS TO QUESTIONS 413 Solutions for Chapter 8 8.1 See Table A2.5. 8.2 Volume Variable Fixed Total Standard Average Marginal ...

414 ACCOUNTING FOR MANAGERS 8.4 Current position: Eastern Western Total ££ £ Sales 550,000 500,000 1,050,000 Variable costs 275, ...

SOLUTIONS TO QUESTIONS 415 8.6 Variable costs are £750,000/300,000 batons=£2.50/baton. As the selling price is £5/baton, the nor ...

416 ACCOUNTING FOR MANAGERS 8.11 Selling price 20 Direct materials 8 Direct labour 5 13 Contribution margin 7 Breakeven= 7 , 000 ...