Professional Documents
Culture Documents
Section A
11 C
12 D
13 C
14 D
15 B
16 B
17 B
18 A
19 C
10 C
11 B
12 C
13 B
14 D
15 C
16 D
17 B
18 A
19 B
20 A
21 C
22 A
23 D
24 A
25 A
19
Section B
1
(a)
60
Sales
Revenue
000
000
50
x
x
x
40
x
x
30
x
20
10
(b)
Advertising
000
expenditure
000
Regression line: y = a + bx
n xy x y
b =
n x2 ( x)2
y bx
a =
n
n
In this example the advertising expenditure is the independent variable (x) and the sales revenue the dependent variable (y).
(8 1,055875) (2635 2895)
818675
b =
= = 707
2
(8 1012625) 2635
1157775
2895
2635
a = 707 = 129
8
8
regression line: y = 129 + 707x where x and y are in 000
Line drawn on above graph.
20
Hi
095
2
Large
Premises
E
Good
08
Bad
02
Survey
(50,000)
Large
Premises
Lo
005
Abandon project
Hi
075
(550,000)
A
600,000
(550,000)
1,500,000
1,500,000
C
Lo
025
(300,000)
Small
Premises
600,000
Hi
06
1,500,000
Lo
04
600,000
21
(a)
Absorption costing
Sales (50 100,000)
Cost of sales:
Opening stock
Production costs
Variable (19 120,000)
Fixed (3(w) 120,000)
Closing stock (22 20,000)
Under/over absorption
000
000
5,000
2,280
360
2,640
(440)
(60)
(2,140)
2,860
Gross profit
Selling costs
Fixed
Variable (2 100,000)
(150)
(200)
2,510
Net profit
Working
Overhead absorption rate = 300,000/100,000 = 3 per unit
(b)
Marginal costing
Sales (50 100,000)
Cost of sales:
Opening stock
Production costs
Variable (19 120,000)
Closing stock (19 20,000)
Variable selling costs
000
000
5,000
2,280
2,280
(380)
200
(2,100)
2,900
Contribution
Fixed costs
Production
Selling
(300)
(150)
2,450
Net profit
22
Report
To: Ms Swainsthorpe
From: AN Accountant
Re: Computerised accounts and stock control
Date: December 2002
The following report addresses the advantages and disadvantages of implementing a computer system. It also explains what a
management information system is and how it can be used. Finally it addresses your current stock control procedures.
Computer system
The advantages of a computer system is that it will be quicker to input entries to the accounting system and easier to extract
management information. Another advantage is that fewer errors are likely to occur as the computer can check that all the debits
equal the credits.
The disadvantages are the expense of the new system. Also the training costs involved may be high and you may also experience
some resistance from the employees to this new way of working. Finally you would not be able to switch over immediately as you
would have a cost of running two parallel systems for a short time to check that everything is working correctly.
Management Information System (MIS)
A MIS is an accounting system that will provide management with appropriate information both routine and non-routine as required
by the organisation. It is expected that management will be able to effectively utilise the output from the system to make efficient
use of the resources of the business.
The MIS will help you run the business as it will provide you with relevant information. This information will help with decisionmaking, planning and control and coordination of the organisation. The type of information extracted will depend on the needs of
you, the user.
Stock
The current stock-take procedures seem onerous as they require the business to be closed once a month. This results in a loss of
a days production and so will eventually impact on profit.
If the bin card system is working effectively then an entire stock-take should only be necessary once or twice a year. Instead of a
complete stock-take spot checks could be carried out comparing actual stock to the bin card value and any errors noted and the
system updated. High value or high usage items could be checked more often than slower moving stock. In this way the business
need not close so often.
(a)
Return on investment
Division A
Profit
Net assets
35,000
150,000
70,000
325,000
Return on investment would be the better measure when comparing divisions as it is a relative measure (i.e. a % figure).
(c)
Service industry performance measures, in general terms, could include any of the following:
Competitiveness
Financial performance
Quality of service
Innovation
Effective and efficient utilisation of resources
23
Section A
Each question is worth 2 marks each total 50.
Section B
1
(a)
(b)
21/2
1/
2
1/
2
11/2
calculation of b
calculation of a
stating the regression line
putting the regression line on the graph from (a)
2
11/2
1/
2
1
2
2
2
1/
2
1/
2
1/
2
1/
2
1/
2
1
1/
2
(a)
1/
2
1/
2
1/
2
1/
2
1/
2
1/
2
(b)
1
1
1/
2
1/
2
10
10
1/
2
1
1/
2
1/
2
1
1/
2
24
10
report format
introduction to report
three advantages of computer system (1/2 each point)
three disadvantages of computer system (1/2 each point)
definition of an MIS
how it could be useful
critical comment on current stock control methods
suggestion for improvement
(a)
(b)
(c)
Marks
1/
2
1/
2
11/2
11/2
2
1
11/2
11/2
10
11/2
1
11/2
1
1
1
10
25