Question 1

A.

B.

ID Duration (days)/ ES EF LS LF TF
FF
Tempoh (hari)
A 6
B 3
C 10
D 4
Question 2 E 3

A. Cash flows F 5 represent the lifeline of any

business. A positive G 3 cash flow is essential for
the survival of your H 5 business. Unfortunately,
maintaining positive I 4 cash flows can create a
challenge for you J 2 and your business. When
you run into cash K 4 flow challenges, you are
not able to pay your bills on time risking a
L 1
decrease in its credit line or higher interest
M 14
rates.
Cash flow management involves the forecasting of these flows, recognizing that the timing of inflows often does not match outflows,
and planning in advance to compensate for cash flow fluctuations while maintaining sufficient reserves to cover operational and capital
needs. Of course, managing cash flow also involves ensuring that customers pay on time by establishing effective accounts receivable,
credit and collection policies as well as reducing outflows by eliminating operational inefficiencies and waste.

The cash flow statement is the financial statement that presents the cash inflows and outflows of a business during a given period of
time. It is equally as important as the income statement and balance sheet for cash flow analysis. Without a cash flow statement, it
may be difficult to have an accurate picture of a company’s performance. The income statement will tell you how much interest you
paid on a loan and the balance sheet will tell you how much you owe, but only the cash flow statement will tell you how much cash
was consumed servicing that loan. The income statement will record sales and profits but it’s the cash flow statement that will alert you
if those sales aren’t generating enough cash to cover expenses.

Operations
Cash flow from operations represents the main type of cash inflow and outflow for a business. Cash comes in from customers and goes
out to pay for expenses, including inventory. When thinking about cash inflows from operations, it may be helpful to remember that it
is not a measure of revenues. A company could sell $1 million this month and that sale could generate zero in cash if the entire amount
is sold on 60-day credit terms. The income statement will show the revenues and the balance sheet will show an increase in accounts
receivables, but there won’t be any incoming cash from this activity. Since your business will need to spend cash now to fulfill the
order, it’s important to ensure that you have sufficient cash—or access to cash—in order to avoid a cash crunch.
Investment Activities
 Cash flow from investment activities represents cash flows mainly from the purchase or sale of fixed assets. It also includes other less
common investment-related activities, but its main focus is plant, property and equipment. Cash from these activities is separate from
operations because they tend to be for long-term planning and are not directly related to the day-to-day cash operations of a business.
A company that consumes large amounts of cash for investment purposes indicates that it is investing for future growth, which
consumes cash. If the cash from operations isn’t enough to cover investment activities, then another type of cash flow may be helpful.
Financing Activities
Cash flow from financing activities represents cash flows to and from third-party financial backers. It consists of cash related to debt
such as proceeds (cash in) and loan payments (cash out). It also covers cash flow related to equity, such as share purchases (cash in)
and dividends (cash out). Cash flow from financing activities helps gauge how much cash the company is generating on a net basis
from third parties as opposed to cash from ongoing operations.  

B. COST ANALYSIS
A. Costs
Cost analysis is a comparison of costs. Costs used to prepare financial statements are not the same as those used to control operations.
Costs may be controllable or non-controllable and are subject to time periods and constraints. For example, controllable costs are those
the manager may authorize. However, costs that may be able to be controlled over the long-term, may not be controllable in the short-
term.
Total cost is the relationship between production quantity and costs, expressed as:
Total cost = Fixed Cost + Variable Cost * Output

COST CLASSIFICATIONS
 Costs are classified according to their behaviour. A cost's behaviour is how the cost responds to changes in the level of the business
activity.

Costs are broadly divided into variable costs and fixed costs. For example, the total variable cost increases and decreases in relation to
the changes in business activity levels. Conversely, fixed costs are not affected by business activity level changes, remaining the same
throughout.

Absolute cost quantifies an asset's loss in value.

Relative cost compares the selected action or decision, and the alternative action or decision that was not selected.

Opportunity cost is the cost or sacrifice (loss) incurred as a result of selecting one activity or action over another.

Differential cost is a cost that is present under one kind of alternative or set of conditions, but not under another. Differential costs may be
variable or fixed.

Incremental costs (sometimes referred to as "differential costs") are increases or decreases in cost, when moving from one alternative to
another.

Sunk costs are those that have already been incurred and cannot be changed, now, or in the future.

VARIABLE COSTS
"For a cost to be variable, it must be variable with something" - which happens to be its activity base. A variable cost's activity base is a
cost driver, which is a measure of effort that influences what causes the cost to change. The type and quantity of variable costs a firm has
depends on the nature of the firm's structure.

A variable cost's total variance is directly proportional to changes in the level of business activity. A variable cost changes in accordance
with the particular unit of production. But it remains constant per unit, such as:

cost per cubic meter

cost per cubic yard, or

cost per square foot

Variable costs incurred during a stated time period may be calculated using the following formula:

Total Variable Cost = Total Output Quantity * Variable Cost Per Unit of Output

FIXED COSTS

Fixed costs are only incurred once and remain constant in total dollar amount, regardless of the level of activity. Fixed costs are time-
related. For example, indirect costs and overhead -- such as salaries, rent, insurance, and advertising -- are considered fixed costs because

they remain unchanged, regardless of increases or decreases in production output, and

they do not depend on the level of goods or services produced by the business.

However, fixed costs do decrease per unit as the business activity level increases, and increase per unit as the business activity level
decreases. For example, when additional units are produced, there is a decline in unit cost.

Total fixed costs may be:

Committed, which are long-term and cannot be reduced to zero at any point, or

Discretionary, which are managed and based on periodic spending/investing decisions

Committed fixed costs are plant and equipment investments. Discretionary fixed costs are research and development, advertising, or
development program costs