Accounting for Managers: Interpreting accounting information for decision-making

SOLUTIONS TO QUESTIONS 437 14.4 See Table A2.29. 14.5 The known information is: Current year Next year £ mill £ mill Sales 586 7 ...

438 ACCOUNTING FOR MANAGERS Table A2.29 (continued) Budget Cash flow Profit after interest 3,480 5,430 5,305 6,780 20,995 Add ba ...

SOLUTIONS TO QUESTIONS 439 The information needed to support these strategies isthe expected contribution from each strategy, dr ...

440 ACCOUNTING FOR MANAGERS (d) Budget 11,000 Variances Sales price 12,100 A Sales quantity 37,100 F Magna price 1,425 A Magna q ...

SOLUTIONS TO QUESTIONS 441 Table A2.31 Budget Flexible budget Actual Sales units 10,000 11,000 11,000 Price per unit £37. 10 £37 ...

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Appendix 3 Case Studies The case studies contained in this chapter provide the reader with the opportunity to interpret and anal ...

444 ACCOUNTING FOR MANAGERS Table A3.1 Paramount Services PLC Profit and Loss account in £’000 2002 2001 Income 34,000 29,000 Le ...

CASE STUDIES 445 Table A3.2 Paramount Services PLC Ratio analysis 2002 2001 Sales growth 17.2% Expense growth 26.9% Profit growt ...

446 ACCOUNTING FOR MANAGERS Business overhead £3,000 (allocation of head office overhead) Total £15,500 This results in a budget ...

CASE STUDIES 447 Table A3.3 Holly Road Farm Produce Total costs Agricultural specialists 60 @ £15,000 p.a. 900,000 Unskilled lab ...

448 ACCOUNTING FOR MANAGERS Table A3.5 Call Centre Services Call centre Telemarketing Total Number of calls 70,000 25,000 Fee pe ...

Table A3.6 Cryogene Corp. (a) Cryod Genet Yogen Total Sales units 3,000 2,000 1,000 Price (£) 1,500 1,150 2,500 Sales £’000 4,50 ...

Table A3.6 (continued ) (d)Product profitability 4: throughputSales £’000Contribution marginMfg overhead allocationGross profitL ...

(c)Product profitability 3: activity basedDriver Total cost No. Cost each Cryod Genet Yogen Total Purchase orders 700 100 7 40 1 ...

Table A3.6 (continued ) (d) Cryod Genet Yogen Total Cryod Genet Yogen Product profitability 4: throughputSales £’000 4,500 2,300 ...

CASE STUDIES 453 Table A3.7 Serendipity PLC capital investment evaluation in£’000 Year0123456 Capital investment 5,000 Depreciat ...

454 ACCOUNTING FOR MANAGERS Table A3.8 Carsons Stores Ltd In £’000 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year total Sales 100 ...

CASE STUDIES 455 Table A3.10 White Cold Equipment PLC Budget v. actual report Actual Budget Variance Sales units 1,000 1,050 − 5 ...

456 ACCOUNTING FOR MANAGERS Table A3.12 Variance analysis Materials price variance £20 Actual no. units 910 Adverse variance 18, ...