‘Tn flowing statements have ben made abut Enterprise Resource Panning Systems (ERPS) |. implononing en ERPS may ecuce an ensaas osts u vllyresut in rere menu Wo 2. Austra Raibnstip Managemen! sytem use an ERP mode cape, anys and atte eleven custarer fora thin an rnin. Which ofthe statements ifere rue? > tom > 20m Acerpay ions rote wih ee a heel A The sad cect x sh a2 A ried prio 5 pr. ee separ sad eon a owt Pn paren mt a a ohnaon eat (as camgury bones 200 ite! X acy 57200 ws 4100 Le EAE wee ed, hot 78D Te cana he ‘einen Indicate whether each of the following statements about activity-based costing (ABC) have been made are true or false. Statement Tue [ Fae ‘Under ABC, @ company ts more ily 10 ‘make a better pricing decison n meeting its sired profiabity, ‘When using ABC, subjective judgment on ‘overhead allocation may be requited because ‘an overhoad can have multiple cost drivers. ‘ABC cannot be used in service organisations "ABC tay conti To @ more accurate ‘decision on the discontinuation of loss {making product ‘Acompay prs auch anew posit Ra ibe seca Ton 2d choses Prat ane). Te rang arene has oseane toe estaS Sead oe posse rae congions “Te pany tte ne mare candtos poor ede, ard gon atte be 5, Nan Orage) and me manager carey eed pcos asf eachopn a 1550s 62289 emul Wnt ne vn of pret infomation? secu ef 810.09 aes goa oft ag ef 20% hoe anny an verge af Bn, are arrape cashblnc e490 The ‘arate come’ curentto asuming 30 days na your? (2 deine places)Which of the following statements regarding zero-based budgeting (ZBB) are correct? Statement Correct] Incorrect The ranking of decision packages is a straightforward process because activities are quantified in financial terms. Long-term goals are emphasized rather than short- term because ZBB aligns the budgeting process with the organisation's mission. ZBB results in streamlining and centralising the budgeting process and saving departmental managers’ time, ‘ZBB eliminates outdated processes and operations and reduces budgetary slack. Dion Cap a Coad aug ones yarn tran tes Inautin part sit er 45 60 had on tg Cap, SR Speiton charge E009 wt faba contol bot con by 5a cower ae crrlue mum cn capt empoyea(ROCE oases peromsnce a he son masa ‘The following statements have been made about a company’s data: 1. Structured data, while not lad out in columns and rows, has labels and identifiers that enable searching 2. Examples of unstructured data include social media posts and discussions from @ company’s customer service cha history. Which ofthe statements is/are true? © toy 6 2ey (9 Nether t nor2 © Bath | and 2 mance conpany wih makes many pois ating ne roc, The bute formant exci oh occve ye eg atl the bucpted eye cont pret tor he em prod? 2 cma aces)rec nates @ 85 per0 eso te ing cae ae 8450 per unt and 6370p ui br Pecans eepecvey Net meth, ral wb ino 3.76049 aaa wl te 3.00, thx anay being the ante proauce and ab or Prout and, alc fe folowing stent linge he jets uncon nthe conta are a ea aera ee Indicate whether each ofthe following potential benefits of using big data fora large retail company are truetfalse. True [Fase Tinproved cusiomer engagement ‘Simplifies compliance requirements Reduces the need for skiled employees Roeduces data storage and processing costs Zola Co manufactures components for smartphones. The industry is highly competitive, their products have short lifecycles, and technology is constantly improving. Indicate whether each of the following statements are true/false. Statement True False Zola Co would benefit from standard costing, as it would ensure input costs are kept in line with market conditions. Just-in-time systems would be of little use to Zola because it needs high buffer stock levels to avoid stockouts in their competitive industry. Benchmarking would be a useful performance management tool as they will be taking other practices and industry trends into account. ‘An automotive repair company has set a new repair service price at $49.95. This new service is estimated to use $10.50 of direct materials and 0.75 labour hours with an hourly rate of $36.00 per hour. The management accountant has calculated that there is cost gap based on a target cost of $35.20. What % of reduction in labour hours is required to close the cost gap? (to one decimal place) %Which of the following is the best measure of resource utilisation to be included within a building block model for an audit firm? © Average cost per fulltime employes 0 lable hours asa percentage of total hours worked © Labour tumover rate (© % change in total billable hours, year-on-year ‘Accompany makes 2 products, X and Y, which are sold in a constant ratio of 1:4. Product X has a selling price of $9.50 and a CS ratio of 0.5, and product Y has a price of $7.00 and a CIS ratio of 07. For the upcoming quarter, budgeted sales are 20,000 units in total, and fixed costs are $75,000. What is the breakeven point in sales for the upcoming quarter? © $107,143 © $113,696 © $115,503 © $117,609‘The following seenaro relates to questions 16:20, Jerda Co's a business that produces high-quality acouste guitars, They fe three models, the Student. the Performer, andthe Maser, which meet the neds of beginer to professional musicans. Jrda Co pris itself on the high quality af ts workmanship and ony uses ‘The sates manager al Jarda Cos responsible for marketing and sling all three models, and the production manager i responsible for a aspects of proauton and quality. The procurement managers responsible for purchasing raw materia and managing supple relationships. ‘The company operates ina JIT environment and hols lite or no ieventory. Budgeted and actual information forthe previous quarter are 3 fotows Budget ‘ctu Price ve Price ve Model (Sperunit) ($perunit) Units ($ perunit) (8 perunit) Units Student 18 120 410 190 126 516 Performer 40 200 246 818 24215 Master 700 300 164 680 300 129 ‘Adsivonalinfermaton fom te cost card about the use of spruce (a partcuar type of wood) forthe Student model and actual results for the previous quate areas follows Spruce Standard cost per un 0.28 MF" S 285 per MF = $79.80 per unt Actual Quantty 1s30m" Actual Spend 339,800 Me stands for square meters ‘The procurement manager hasbeen informed he wil ot receive 3 bonus forthe quarter; He thinks hiss unfar because the cost of spruce ineeased by 2% duet ination, What isthe total sales mix contribution variance? (0 814702 Fovourable 6 SA792 Adverse $18,060 Fevoursble 6 818.060 Adverse ‘What Is the total sales quantity contribution variance? © 86.180 Fevourabie © 88.180 averse $5,840 Favoure 88.040 AcversoIndicate whether each ofthe following statements regarding the Student model are truefalse. Tw False The procurement manager correct asserts that inflation was the only cause of the ‘overspending on spruce, The production manager used less spruce than expected Inthe folowing quarter, Jaréa Co's flexed budget for contribution was $17,260 higher than the original budget. ‘Also, a $12,150 Adverse sales mix variance resulted from seling @ smaller percentage ofthe Master model than planned ‘Wat is the favourable sales quantity contribution varlance (tothe nearest 8)? ‘Also, in the folowing quarter, the market for acouste guitars increaged by 4%, and Jarda Co held @ bigger poston in this mark ‘The sales manager sald fs was due tothe promotion ef thelr igh-qually production, which attacted new customers. 1. Prometio of Jada igh-uatyproducten sky cause of th aveuratie mart size variance ‘2. The favourable maha share variance canbe abut o beacon theese manage. ‘Based on the information above, which of the statements isiare true? otey 9 Romy Both tana?The following scenario relates to questions 20-25 Freya Co is an automotive company that manufactures wiring harnesses (bundles of prepared cables installed in cars). Freya's main customer is a large automobile manufacturer, and the industry is mature and highly competitive. Demand exceeds Freya's capacity and they hold ite inventory, Freya's workforce is on guaranteed hourly contracts. The factory is organised into identical production ines and all products pass through four manual stages, listed below. Production times are shown in partial hours, ic. 0.3 1s 30% of 1 hour. Product Production Stage Eee Cutting and stripping 025 022 020 Soldering 048 040 0.38 “Taping & Fastening 030 027 025 Preparation for transport 0.02 002 0.02 Product prices, costs, and contribution are shown below Product Per unit, x Y Zz Price 28.50 20.00 2378 Direct Materials (94.10) (42.50) (11.00) Direct labour (60) (480) (6.75) Contribution 8.80 270 6.00 ‘Annual factory overheads are $1,740,000 (not including direct labour cost). and there are 2,900 labour hours avalable pet week The factory is open 50 weeks a year, and the total labour cost is $1,160,000 annually Using twoughput accounting principle, rank the products in the order in which they should be produced and sod to maximise prof. x 1 the throughput per hour for Product X is $82.00, calculate its throughput accounting ratio (TPAR) (tothe nearest 1 decimal place) Freya Co has decided to reallocate the workforce between production stages fo improve throughput Which decision would most likely result in the biggest Improvement in throughput? © Realoat taping an fastoning workers fo cutng and stipsing ©) Realocat transport proparaton workrs to solering © Realocate soldoring workors to cting and taping Realocatseaidsing wekar to transport preparation{Wboth the hourly wage rate and direct material cost are expected tobe higher than the original estimates, what would be the impact on the following? increase | Decrease "Throughput contribution per hour ‘Other factory costs per hour “Throughput accounting ratio. ‘Which of the statements about throughput accounting Is NOT true? (o- Theoptimum producton of the bottleneck acy determines the production schodul ofthe nor-botloneck activi. ‘concentrates on the longerm, when a business has @ fied supply of resources and operating expenses are largely fed ° Improving productivty on the boteneck resource wil lead to an improvement a @produet's TPAR. ° (© Conversion costs are considered fixed and inched in other factory costs,The following scenario relates to questions 26-30 Kent Co produces a range of consumer electronics and has launched a new media streaming device called the ‘Streamster. The Streamster will be produced by the existing workforce on a new production line, and the production pracess will be similar to that of other products they produce. The following product information is available: 8 Seling Price 85.00 Direct Materials (65.75) Direct Labour (11.00) Fixed overheads (7.00) Proft 125 “The costing above did not consider the possible learning curve effect among the production workers. The production supervisor is confident that an 90% learning curve should apply and that a steady state of production will be reached at the 50th unit. The learning index for 90% is -0.152. Labour is paid $27.50 per hour. ‘The Marketing Director expects demand for the Streamster to be seasonal, and has made the following piojections for seasonal variation 1 55% 2 85% 8 105% 4 135% ‘The trend equation has been calculated as Y=85,000+2, 980, where X indicates the quarter and Y indicates sales. ‘What direct labour cost should be applied tothe 50th unt ofthe Streamster after adjusting the time per unit for the learning curve? (To the nearest 2 decimal places) s ‘After the frst month of production, the production supervisor realized that @ 95% learning rate should have been used instead of 90%. Which ofthe following statements is true about the cost ofthe Soth unit? romain unchanged 9 Hibetowertan expected © Hib highar hn expected 9 wil decrease sir asin uber uit has boon reduced What sales level is forecast for quarter 4 of year 2 ofthe Streamster? (tothe nearest unit). Assume index number 1 refers to quarter tof year“The management accountant neds to calculate the ited costs lad fo an expensive item of production equipment that wl be used In the new product. She has gatvered the folowing information trom the previous 12 months ‘Sum of machine hours: 252.336 “ota cost forthe year: $10,380,000 Variable cost per hour: $5.35, “The management accountant artived at the results above using monthly totals (le, the spreadsheet contained 12,rows of dat), Using regression analysis, what are the estimated fixed costs? (tothe nearest 8) . ‘The management accountant determined tat the coreaton coeMcient ofthe dataset elated to total machine cost and machine hows was 0.9 Which TWO of the following statements are correct? 1D 19% ote varaton inte meine cst fom nth o mon caused by fcr other han machin hor. 1D Thechangoin ho X ale expan 90% of he change inthe ¥ value, [5 Thecorelation tetaean te machine hous andota coetis rng, 1D Anincreasein mechine nous of 0% wl eae oa cnt 100%‘This scenario relates to three requirements (Gate Co @ construction company hat insals heating, venation, and ai condoning systems (HVAC) A age realestate ‘developer, Homes Co, has requested a quote fora single HVAC installation a proposal needs tobe prepared on a relevant costing basis so Gate Co can offer as low a pice as possible. Homes Co has stated that the jab must be completed within 3 wooks. “The folowing information has been gathered: Materials 120 meters of ventlation pipe are required atthe start ofthe project. This materia is used in ll of Gate Co's projects. There are 75, meters of ventlation pipe which cost $8.60 per mete curenty in tock, While a farge order of ths material expected in 2 weeks, ‘an express dover fom an altemate supplier can be made. This supplier charges $9.20 per meter, which is $0.6 higher than thei normal price, and $80 for he delivery, Fasteners and connectors, used in all of Gate Cos projects, curtenty cost $360 for every 1.5 meters of insaled ventilation pipe, and Gate Co has enough of his in tock for 80% ofthe job. The addtional fasteners can be purchased trom a local supplier as required atthe cuent cost. Heater ‘Aneaters required, Anew unt costs $4,700, Gate Co has several of hese models in already instock and uses them regulary on instalatons. An electcan will perform some ofthe work and charge Gate $480 for this service. Heat Pump Gate Co has a heat pump instock rom a cancelled projet that they plan to sll for $5,500. This unit originally cost $6,200 but would need modification of $925 fo be compatible withthe Homes Co system. Anew heat pump wil cost 8,500, ‘Skilled Labour “The project requires 120 sklle labour hous, and these workers are paid $18 per hour. Gate Co has two option to comple Homes Co request within the tie required. “The fis option sto divert some oftheir skiled workers for 8D hours fom a large jo with an portant customer With his option, {Gate Co would also incur $480 in overtime premium costs, Divertng the workers also means missing a deadline and a 62,500 penalty “The second option woul be fo outsource BO hours ofthe nsalaton toa subcontracter. The subcontractor charges $28 per hour and takes, on average, 10% more tim todo the werk than the in-house werkfore. Under tis option, no penalty or overtime premium payments vill be Incurtes Supervisor “The supenisoris paid 855,000 per year. She estimates that managing the Homes Co project vil take 25 hours this month, and she has sumcient capac for his work, Planning and Permit Work 25 hours of work from the planning team willbe needed, The team consists of wo planners, each paid monthly salary of $3,500 “They wil ned to Werk 12 nous in total over a Weekend (hn adton other normal hours) to meet the Homes Go deadine. Each Panne is paid $25 per hour for overtime work. overheads Production oveneads are charged at 1050 per labour hour of which $3.25 is consideree variable. Nonproducton overheads are absorbed for $1,500 perjob. ‘eu shou assume at here ae 4 weeks per moh and Mat ne slanda waring Wek 640 Nous (2) Explain the principles of relevant costing and why Gate Co would use relevant costing forthe job for Homes Co. (6 marks) (b) Prepare a statement showing the project's relevant cost. (8 marks) (©) Expain why you inched or excludes each tem in your costing, (as)‘This scenario relates to two requirements Jay Co produces a unique ype of industal paint and a special chemical (Chemical KG) that uses ints paint and sels to other customers. The company comprises two divisions P and C. Division C manufactures Chemical Q for Division P and other external customers. Division P combines the KQ i buys from Division C wih other materials and sels ts tnished paint product to external customers only ‘The following information is available for both avsions Division c s Selling prices per lire of chemical KQ External price 490 Internal pice 460 Costs per lire ‘Other materials trom external vendors 120 Direct labour costs 180 Montnty fixed overneads 140,000 Divisional Net Assets 46,500,000 ‘Maximum annual production of K@ (tres) 2,000,000 Maximum annual external demand for KO (ies) 1,800,000 Maximum annual internal demand for K@ (tres) 1,200,000 Division P s Current seling pice per itr of paint 13.50 (costs per ire ‘Chemical K trom Divison © 460 (ther materials rom external vendors 230 Direct labour costs 220 Monthly xed overheads 265,000 Divisional Net Assets 17,100,000 ‘Annus production and sales of pant tres) 1,200,000 ‘Maximum annual demand for paint (ites) 1,200,000 “The current transfer pricing policy issued by Head Office requires Division P to buy alts KQ from Division C, which means Division C cannat meet its external demand, ‘The Division P manager has found a supplier for an equivalent chemical to KO that can be purchased for $4.40 pe litre and ‘Would Ike to switch to this supplier. The Division C manager is unhappy that she needs to supply Division P ata lower price before mestng the demand of her extemal customers, Head Office has now agreed to allow both dvsions more autonomy in choosing suppliers and setting pices, as long as the ‘group's profits are maximised. Anew transfer price of $4.35 perlite was proposed, andthe managers of both divisions accepted a Jay Co's divisional managers are assessed by Residual Income (Ri) and thelr cost of capital is 10%, (4) Discuss te cojectves of setting a tanse price ang how a suboptimal tanster price can estor the performance assessment othe dis ‘manager state your answer with exam (6 marks) (©) Prepare a statement showing the prot of both dvsions and Jay Co AND Residual Income (Ri forthe divisions under the existing and new polis. Where appropiate, your sales and eost figures should be spt int external ales and inter-ivisional ansfers, ‘Comment on your results. (14 mara)