1.

broad in scope

=--_-_
MGT .

-
CONSULTANCY
to recommend / advice

2. -

¥Éted exclusively internal

to other practices
É process of comparing practices
O
§
§
3. STAFF POSITION
$
_
LINE POSITION
ˢ
✓
org
.

obj.sn goals
•
maintenance , acotg ;

"
£ •
prod'n sales ,
, Treasury .HR ,

° " legal dep't

marketing operations

,am[
.

E
O

4.
www.m.ag.mn#T--
T recording custody -

us
-

mama -

reporting
\ /
L
safeguarding INCOMPATIBLE DUTIES

0
5.

--÷ µ ,÷
COST Constant
TOTAL -_
FC
BEHAVIOR 6 /u per unit : constant 614 VC
81h 6.51h MXC
3/4 31h VC

g
6. -
Trial Hrgraph
-

fit me
-

correlation : ∅ : NO Relation

Inverse -0.90 r 0.88 Direct

0.81 r2 0.7744

Management Advisory Services by Karim G. Abitago, CPA Page 1

Preweek Materials (Batch May 2022)
 STEP FIXED COST
7.

8.
CUP -
-
0 - - -

-
-

9.

,FÉÉs% -1/5001<=373-000
- -
-

BEPS =

o
-

D0L=%±- 4=47 M°s=¥m ¥ =

25%

MULTIPLE _

°-÷
" " ""
-

20×70--12 -20×-40=8

10.

11.

12.
STANDARD
[ _

It separately ; but related

cost Employee motivation
control
compare against actual costs for budgetary /Std costing
.

13.
-

0
14. -

① _ _

vmc-sameinb.IE
' > Bt :P > s

15. - -

Management Advisory Services by Karim G. Abitago, CPA Page 2

Preweek Materials (Batch May 2022)
#7
) ] 1.20 1.2091-90 Kb
1.201220k atb (75k 264K __
: U

2751<=1.20 atb ( look )

U 275k = 1- look b

-1¥ 94¥
-
_ '

b= 1.10

# 10
sales mix am SP
WACMR
3/5 60% 40 60% 24
%-
MARKER ✗ 20 12 ✗
=
=
= 45.45%
40T ✗ 20 8-
-.¢-
PEN 215 50 ✗ 40.1
-

. -
.

WAUCM 20 WASP

Mma '
BES ;¥.LY?i::-=i:.7-s.-.,.--aweoooo
* 11
Fixed cost % 45.45% -
w 't . 35.454 .

Total sales 100000135.45% 282087

WASP ÷ 44 # Pens to be SOLD
total No of Units to be sold 401
.
6411 u
✗ .
= 2564 units

# 15 # 16 Variable costing
T Variable Prodan Cost 50k -30k
. 20000
To Fixed Prod 'n Cost [ look -170k -3047600g Sales 12k ✗ 12 144000

T Prod 'h Cost

.
80000 VPr0%s+ 12km ✗
220¥ ( 12000 )
produced VPai%s+ 1300001
÷ units
Unit product cost 5,200400b€ CM 102000
✗ Units sold
COST OF GOODS SOLD ¥248M
FC
net income
(oofˢ
#*
Thnwmepervnit sold __↑UCM

SP 12
V6 / u Vprod .
I 1
✓ period 34412k
CMIU 2(3g;%-
16. - -
-

17.
8- -

18. -

ength of budgeting × #

F-F-T.PE#.CashBudget-
¥5T
-

1. sales Budget 2
.
Punch .

19.

0
20.

21.
:
Management Advisory Services by Karim G. Abitago, CPA Page 3
Preweek Materials (Batch May 2022)
 RELEVANT COSTING
22.

00--0--7
23.
- ← -0=-0
0
- _

24.

=
A. P250,000. C. P210,000.
B. P240,000. D. P200,000.
25.
=
-

CAPITAL A. The discounted payback rate takes into account cash flows for all periods.

-#µpv→+>DCRmodel
B. The payback rule ignores all cash flows after the end of the payback period.
BUDGETING C. The net present value model says to accept investment opportunities when their rates of return
exceed the company's incremental borrowing rate.
D. The internal rate of return rule is to accept the investment if the opportunity cost of capital is
-
→
greater than the internal rate of return. ect

-
-

26. -

27.

28.
8 -

29.
= -
FS Assets: Liabilities and Equity:
Cash and marketable securities P 300 Notes payable P 800
ANALYSIS Inventories 500 Accounts payable 400
Accounts receivable 700 Total current liabilities 1,200
Total current assets P1,500 Long-term debt 3,000
↓AR flash Net fixed assets
-

5,000 2,300 Arto

Total assets P6,500 Total liabilities and equity P6,500

=

36%5=10-29

_=→
-

=
Taisho
-

① New AR 7200×30/360=600
New c. A. 1500-100 1400 Old Ak 7¥
wench too too ↓Ak=↓NP
-

New Current Ratio

Management Advisory Services by Karim G. Abitago, CPA Page 4

Preweek Materials (Batch May 2022)
# 22 MAKE or BUY
Relevant cost to MAKE :

Cost 151-27+15 684k

Var .

Mfg .
✗ 121in
Avoidable FXOH 32 ✗ 28% ✗ 12k u96k_ 780k

Relevant cost to BUY :

# 24 PRODUCT MIX DECISION

72¥
Purctntrice 60×121<4
guy Product ✗ Product Y
UCM 50 64
scarce
resin"SR/u=ʰ4u
,¥① ÷8g_②
÷
# 23 ACCEPT OR REJECT
CMISR
Incremental sales 400h ✗ 0.80 320
Total Mtfrs 20000 5000
incremental costs :
VC 400h ✗ 0.40 160 SHU ÷ 5
÷8_
00 267h ✗ ' 604160 # Units produced 4 6 25

¥Y
incremental Profit 0 UCM I
total CM 200000
, ,
240000
# 26 CAPITAL BUDGETING

New Asset 1-1-28

Cost 280000 NPV =
Pvinfwws
Old Asset
Pvoutflows
-

Market Value ( tooooo )

Taxon loss PV : CFAT
200K -20k : 180k ✗ 6/10=108142011 -428k CA 32350×4.9676 160702
look -128k :(28k ) ✗ 30% ( 8400 ) :SV2ok✗ -4039 8078
Avoidable Repairs hetoftax, IOKX.to (7-000) :WC5k✗ -4039 2020

working increase
capital Netmuestment
46,92%1
1,5900g
inwc NPV
NET INVESTMENT

# 27
Payback Period Y%a7T.ws?fYert-aa-Kg9gYf-=t.24yrs
-
-

Cost savings , after tax 4011×70 28000

Tax shield on Incremental
Dep .

OLD /
200k -20k : 180k to
18k =

280k-2011--2606/8=32500-14500×-30
4,325¥
NEW

CASH Flow AFTER TAX

 30.

Activity Center Overhead Costs Cost Driver Activity Center Rate

Materials Handling P 3,000,000 Weight of materials P 3 00 per pound
Cutting 13,000,000 Number of shapes P30 00 per shape
Assembly 46,000,000 Direct labor hours P120 00per labor hour
Sewing 12,000,000 Machine hours P 80 00 per machine hour
Two styles of backpacks were produced in December, the EasyRider and the Ovenighter The quantities and
other operating data for the month are
Easy Rider Overnighter
Direct materials costs P150,000 P200,000
Direct labor cost P300,000 P 50,000
Direct materials weight in pounds 50,000 15,000
Number of shapes 35,000 15,000
Assembly direct labor hours 7,500 1,200
Sewing machine hours 12,500 1,800
Units produced 5,000 1,000
Calculate the cost per unit for each backpack.
a. EasyRider. P620; Overnighter. P783 c. EasyRider, P783; Overnighter, P620
b. EasyRider, P1,232; Overnighter, P1,240 d. EasyRider, P710; Overnighter, P1,033
31.
÷ "
Return on Investment Residual Income
0
A. Yes Yes
↑ 1201 =

¥
B. No Yes
↑ RI
OImp.FR
=
C. Yes No -
✗ AOA
D. No No
32.

±¥÷¥ ①
¥ OI
MROR took ✗ 14%
a*
"%grI
=

33.

TRANSFER
PRICING

0
34. 0
WORKING
.
MGT .

35.

0
EOQ
=2X9075¢%0✗#✓ = 55,000

Management Advisory Services by Karim G. Abitago, CPA Page 5

Preweek Materials (Batch May 2022)
 36. -

*,

76389 ✗ 60%
New 1%0×-1%6 "¥%÷ www.mn.gg,
↓AR
37. -

=÷=
-

A. B. C. D.
Carrying costs P150,000 P150,000 P300,000 P300,000
Set-up costs P 5,000 P 25,000 P 5,000 P 25,000

38.

r
COST OF
TRADE
CREDIT §g- ✗
3% =
73.44%
↳ 30-20
39. -
=
- _

Gt B Crm
- -

r=

Trp
◦
40.

- -

37

Carrying cost 1%-11200 150k

25k
set up cost
-
5 ✗ 5k

Management Advisory Services by Karim G. Abitago, CPA Page 6

Preweek Materials (Batch May 2022)