（a) The senior management of Universal University （UU) intend to develop both quantitative

第1题

(b) ‘EAJ’, which commenced trading on 1 June 2003, is a business services group whose cons

ultants implement

three types of application software packages designed to meet the accounting, distribution and manufacturing

requirements of its clients. Each consultant specialises in the implementation of one type of application software

i.e. accounting, distribution or manufacturing. EAJ does not sell application software packages. EAJ implements

application software packages but clients are responsible for purchasing the packages.

The following information relates to the year ended 31 May 2006.

(1) Each consultation, other than those detailed in notes (4) and (5), is charged at a rate of ￡700 per day for

new clients and ￡550 per day for existing clients. Consultants are budgeted to work for 240 days per year.

(2) The consultants are each paid a fixed annual salary of ￡50,000. In addition they receive a bonus of 40%

of the net value of the fee income generated in excess of budget minus the revenue foregone as a

consequence of undertaking remedial consultations (per notes 5 and 8) based on a ‘notional’ rate of ￡700

per consultant day. The bonus is shared equally among the consultants employed by EAJ on 31 May in the

year to which the bonus relates.

(3) Other operating expenses (excluding the salaries of the consultants) were budgeted at ￡3,600,000. The

actual amount incurred was ￡4,500,000.

(4) In an attempt to gain new business, consultants may undertake consultations on a ‘no-fee’ basis. Such

consultations are regarded as business development activity by the management of EAJ. Each of these

consultations is budgeted to take one consultant day.

(5) Consultants will sometimes undertake remedial consultations with new clients who experience problems

with regard to implementation. Remedial consultations are also provided on a non-chargeable, i.e. ‘no fee’

basis. Each of these consultations requires two consultant days.

(6) Since its formation EAJ has had a policy of maintaining staff at a level of 100 consultants on an ongoing

basis, irrespective of fluctuations in the level of demand.

Required:

Using the above information, analyse and discuss the performance of EAJ for the year ended 31 May 2006

under the following headings:

(i) Financial performance and competitiveness;

(ii) External effectiveness;

(iii) Internal efficiency. (15 marks)

点击查看答案

第2题

1 The Sentinel Company (TSC) offers a range of door－to－door express delivery services. The

1 The Sentinel Company (TSC) offers a range of door-to-door express delivery services. The company operates using a

network of depots and distribution centres throughout the country of Nickland. The following information is available:

(1) Each depot is solely responsible for all customers within a specified area. It collects goods from customers within

its own area for delivery both within the specific area covered by the depot and elsewhere in Nickland.

(2) Collections made by a depot for delivery outside its own area are forwarded to the depots from which the

deliveries will be made to the customers.

(3) Each depot must therefore integrate its deliveries to customers to include:

(i) goods that it has collected within its own area; and

(ii) goods that are transferred to it from depots within other areas for delivery to customers in its area.

(4) Each depot earns revenue based on the invoiced value of all consignments collected from customers in its area,

regardless of the location of the ultimate distribution depot.

(5) Depot costs comprise all of its own operating costs plus an allocated share of all company costs including

centralised administration services and distribution centre costs.

(6) Bonuses for the management team and all employees at each depot are payable quarterly. The bonus is based

on the achievement of a series of target values by each depot.

(7) Internal benchmarking is used at TSC in order to provide sets of absolute standards that all depots are expected

to attain.

(8) (a) The Appendix shows the target values and the actual values achieved for each of a sample group of four

depots situated in Donatellotown (D), Leonardotown (L), Michaelangelotown (M), and Raphaeltown (R).

(b) The target values focus on three areas:

(i) depot revenue and profitability;

(ii) customer care and service delivery; and

(iii) credit control and administrative efficiency.

(c) The bonus is based on a points system, which is also used as a guide to the operational effectiveness at

each depot. One point is allocated where the target value for each item in the Appendix is either achieved

or exceeded, and a zero score where the target is not achieved.

Note: TSC operates all year round.

4

Required:

(a) Prepare a report for the directors of TSC which:

(i) contains a summary table which shows the points gained (or forfeited) by each depot. The points table

should facilitate the ranking of each depot against the others for each of the 12 measures provided in

the Appendix. (9 marks)

点击查看答案

第3题

1 Wonderland plc, which is based in Robynland, owns Cinola Island which is located off the

coast of Robynland. On

Cinola Island, Wonderland plc operates a circus and zoological gardens (zoo) both of which are open for 365 days

per annum. The circus, which is widely regarded as the best in the world, can accommodate a maximum of 14,000

visitors per day. The zoological gardens, which opened on 1 December 1999, can accommodate a maximum of

20,000 visitors per day. Visitors travel to and from Cinola Island using petrol-driven ferries owned by Wonderland plc.

There is no other mode of transport to and from Cinola Island.

The following information is available in respect of the year ended 30 November 2006 and the year ending

30 November 2007.

(1) The zoo and circus were open on each day of the year. The circus performed once per day and was always

operated at maximum capacity.

(2) Three types of ticket were sold as follows:

Note: The petrol-driven ferries were fully depreciated as at 1 December 2006.

(7) Wonderland plc received an annual fee of ￡10 million from an International media group under a fixed-term

contract of three years’ duration. The contract commenced on 1 December 2005 and relates to the rights to

televise programmes which were filmed in the zoo and therefore the fee should be regarded as relating to the

zoo.

(8) Admission fees to the zoo and circus will be increased by 5% with effect from 1 December 2006. Transport fees

will remain unchanged.

(9) It is anticipated that all operating costs will increase by 4% per annum due to the impact of inflation during the

year ending 30 November 2007.

(10) The management of Wonderland plc expect that the number of visitors, visitor mix and ticket mix will remain

unchanged during the year ending 30 November 2007.

(11) Ignore taxation.

Required:

(a) Prepare the budgeted profit and loss account for Wonderland plc for the year ending 30 November 2007.

(9 marks)

点击查看答案

第4题

4 Healthfoods Ltd (HFL) is a well－established company which markets fruit and vegetables u

4 Healthfoods Ltd (HFL) is a well-established company which markets fruit and vegetables under their ‘Good Health’

brand name at each of its 6 outlets in the country of Ateland. During recent years HFL has marketed organically grown

fruit and vegetables. The directors are now planning to market organic mushrooms which have a unique eating quality

and will be the most nutritious mushrooms available on the market.

The finance director has collated the following information regarding the proposed introduction and sale of organic

mushrooms within Ateland:

(1) HFL will purchase the organic mushrooms from Orgmush Ltd (OML) and sell them at each of its 6 outlets within

Ateland. Sales volumes of organic mushrooms are expected to be at the same level at each outlet.

(2) OML, which is the only grower of this particular type of organic mushroom within Ateland, has offered HFL a

choice of four different contracts in respect of the forthcoming year. OML has the capacity to produce 360,000

kilograms of organic mushrooms for each of the 6 outlets.

The cost incurred by HFL in respect of organic mushrooms will vary according to contract size, as shown in the

following table:

点击查看答案

第5题

4 Diverse Holdings Plc has five wholly－owned subsidiary companies. These are:(i) Organic F

4 Diverse Holdings Plc has five wholly-owned subsidiary companies. These are:

(i) Organic Foods Ltd (OFL) which is involved in the production and sale of organically grown fruit and vegetables.

OFL has built up a very good reputation as a supplier of quality produce.

(ii) Haul-Trans Ltd (HTL) which was acquired on 1 December 2005 and is involved in transporting a range of

products on behalf of third parties.

(iii) Kitchen Appliances Ltd (KAL) which is involved in the manufacture and sale of small, manually-operated kitchen

appliances. KAL has recently suffered from squeezed margins as a consequence of competition from low cost

imports.

(iv) Paper Supplies Ltd (PSL) which manufactures and sells a narrow range of stationery products to two distributors.

(v) Office Products Ltd (OPL) which manufactures and sells computer workstations with unique design features

which are highly regarded by health and safety experts.

The management accountant of Diverse Holdings Plc has gathered the following actual and forecast information

relating to the five subsidiaries:

Required:

(a) Identify and comment on FOUR advantages that may be gained as a result of the adoption of a formal system

of strategic planning. (4 marks)

点击查看答案

第6题

4 GMB Co designs, produces and sells a number of products. Functions are recognised from d

esign through to the

distribution of products. Within each function, a number of activities may be distinguished and a principal driver

identified for each activity.

Each sales order will normally comprise a number of batches of any one of a range of products. The company is active

in promoting, where possible, a product focus for design, dedicated production lines and product marketing. It also

recognises that a considerable level of expenditure will relate to supporting the overall business operation.

It is known that many costs may initially be recognised at the unit, batch, product sustaining (order) or

business/facility sustaining (overall) levels. A list of expense items relating to Order Number 377 of product Zeta is

shown below. The methods of calculating the values for Order Number 377 shown below are given in brackets

alongside each expense item. These methods also indicate whether the expense items should be regarded as product

unit, batch, product sustaining (order) or business/facility sustaining (overall) level costs. The expense items are not

listed in any particular sequence. Each expense item should be adjusted to reflect its total cost for

Order Number 377.

Order Number 377 comprises 5,000 units of product Zeta. The order will be provided in batches of 1,000 product

units.

点击查看答案

第7题

4 The Dental Health Partnership was established in 1992 and provides dentistry and other r

elated services to the

population of Blaintopia, a country in which the public health service is partially funded by the Government.

Additional information relating to the Dental Health Partnership for the year ended 31 May 2005 is as follows:

(1) The partnership was open for five days per week during 48 weeks of the year.

(2) Each dentist treated 20 patients per day. The maximum number of patients that could have been treated by a

dentist on any working day was 24 patients.

(3) (i) The partnership received a payment from the government each time any patient was consulted as shown in

the following table:

Required:

(a) Prepare a summary Profit and Loss Account of the Dental Health Partnership for the year ended

31 May 2005 and calculate the percentage of maximum capacity that was required to be utilised in order

to break even in the year ended 31 May 2005. (12 marks)

点击查看答案

第8题

2 The Superior Software House (SSH) commenced trading on 1 December 2002 in the country of

Bonlandia. SSH

develops bespoke software packages on behalf of clients. When requested to do so, SSH also provides training to

clients’ staff in the use of these software packages. On 1 December 2006, the directors of SSH established a similar

semi-autonomous operation in Karendia. All software packages are produced in Bonlandia and transferred to Karendia

at cost plus attributable overheads i.e. there is no mark-up on the software packages transferred from Bonlandia to

Karendia.

Karendia is a country in which the structure of industry has changed during recent years. There has been a major

shift from traditional manufacturing businesses to service orientated businesses which place a far greater emphasis

upon the use of business software.

The operational managers in both Bonlandia and Karendia have no control over company policies in respect of

acquisitions and financing.

The operational manager of Bonlandia receives a bonus of 40% of his basic salary for meeting all client delivery

deadlines in respect of Karendia. At a recent meeting he instructed his staff to ‘install client software by the due date

and we’ll worry about fixing any software problems after it’s been installed. After all, we always fix software problems

eventually’. He also stated that ‘it is of vital importance that we grow our revenues in Karendia as quickly as possible.

Our clients in Karendia might complain but they have spent a lot of money on our software products and will not be

able to go to any of our competitors once we have installed our software as all their businesses would suffer huge

disruption’.

Financial data (all stated on an actual basis) in respect of the two divisions for the two years ended 30 November

2007 and 2008 are shown on the next page:

Required:

(a) Assess the financial performance of SSH and its operations in Bonlandia and Karendia during the years

ended 30 November 2007 and 2008.

Note: you should highlight additional information that would be required in order to provide a more

comprehensive assessment of the financial performance of each operation. (14 marks)

点击查看答案

第9题

1 NB Candidates are advised to read all of the information including that contained in tab

les 1, 2 and 3 before

attempting this question.

Quicklink Ltd operates in the distribution and haulage industry and has achieved significant growth since its formation

in 1997. Its main activities comprise the door-to-door delivery of mail, parcels and industrial machinery.

The information contained in notes (i–vii) below relates to Quicklink Ltd in respect of the year ended 31 May

2005 and changes planned in the year ending 31 May 2006.

(i) Contracted clients were charged at the following rates during the year ended 31 May 2005: Mail ￡6 per delivery,

Parcels ￡10 per delivery and Machinery ￡200 per delivery.

(ii) Rates for non-contract clients during each of the years ended 31 May 2005 and year ending 31 May 2006,

were/are based upon the contracted client rates per delivery plus an additional percentage fee per delivery

charged to non-contract clients as follows:

Activity Additional Fee

Mail 40%

Parcel 20%

Machinery 50%

(iii) On 1 June 2003, Quicklink Ltd entered into a fixed price contract for the provision of fuel for its delivery vehicles

for the three-year period ending 31 May 2006. For the year ending 31 May 2006 fuel costs will be as follows:

(a) ￡0·10 per kilometre in respect of the delivery of mail and parcels

(b) ￡0·50 per kilometre in respect of the delivery of industrial machinery.

Each vehicle owned by Quicklink Ltd is in use for 340 days per annum.

(iv) Employee salaries were paid throughout the year ended 31 May 2005 at a rate of ￡26,400 per employee, per

annum.

(v) Sundry operating costs (excluding fuel and salaries) of Quicklink Ltd amounted to ￡3,000,000 during the year

ended 31 May 2005.

(vi) The board of directors expect that for the year ending 31 May 2006 the following will apply:

(a) contract rates of Quicklink Ltd business will increase by 5%

(b) sales volumes are expected to remain at the same level as in the year ended 31 May 2005

(c) salaries and other operating expenses will increase by 4%.

(vii) The board of directors agreed to purchase Celer Transport, an unincorporated business, which was founded in

December 2001. The purchase took effect on 1 June 2005. Celer Transport has main activities comprising the

delivery of mail, parcels and processed food. The managing director of Quicklink Ltd has expressed his view that

‘the acquisition of the Celer Transport business would constitute a good strategic move even though it is expected

to make a loss of ￡50,000 during the year ending 31 May 2006’.

The information contained in notes (viii–xii) below relates to the business of Celer Transport in respect of the year

ending 31 May 2006:

(viii) A distinctive competence of the Celer Transport business relates to its success in winning contracts with major

food producers. Each contract is for a fixed term of three years and all contracts were renewed on 1 June 2005.

Contract values per annum are as follows:

Number of contracts Value per contract (￡)

4 225,000

6 150,000

9 100,000

(ix) (1) The sales volume of mail and parcel deliveries to Celer Transport clients is expected to increase by 10% per

annum with effect from 1 June 2005. It is intended to use the client billing rates of Quicklink Ltd that were

in application during the year ended 31 May 2005 as the basis of charging for mail and parcel deliveries to

Celer Transport clients during the year ending 31 May 2006. This is due to the fact that Quicklink Ltd had

higher client billing rates than Celer Transport and the board of directors recognised that it would have been

difficult to adopt company-wide billing rates with effect from 1 June 2005.

(2) During the year ended 31 May 2005 the billing rates of Celer Transport in respect of contract and noncontract

mail and parcel deliveries were 90% of the level of the rates charged by Quicklink Ltd.

(x) Fuel requirements for the Celer Transport business activities are forecast to cost ￡0·12 per kilometre for mail and

parcel deliveries and ￡0·60 per kilometre for deliveries of processed food. The fuel required for Celer Transport

business during the year ending 31 May 2006 cannot be provided under the current agreement entered into by

Quicklink Ltd as detailed in note (iii). Each Celer Transport vehicle is in use for 340 days per annum.

(xi) All Celer Transport employees will be paid on the same basis as Quicklink Ltd employees.

(xii) Sundry operating costs (excluding fuel and salaries) of the Celer Transport business will amount to ￡1,990,340.

Required:

(a) Prepare, in columnar format, the budgeted profit and loss accounts for the year ending 31 May 2006 of:

(i) Quicklink Ltd;

(ii) Celer Transport; and

(iii) The combined entity. (16 marks)

点击查看答案

第10题

1 The Harding Law Partnership (HLP) provides legal services to commercial clients in the c

ountry of Strifeland. The

partnership commenced trading on 1 June 2001. Each of the advisors employed by HLP is a specialist in the

provision of legal services in respect of ONLY one of the following categories of work:

Property;

Commercial; or

Litigation.

Appendices 1.1 and 1.2 below show statistics (both budget and actual) for the twelve month period ended 31 May

2007 for HLP and also for a competitor, Merlin Advisory Services (MAS).

Additional information relating to HLP for the year ended 31 May 2007 is as follows:

(1) Fees charged per consultation (including subcontracted consultations)

Required:

(a) Using the information contained in Appendix 1.1, prepare budgeted and actual profit and loss statements for

HLP and also a profit and loss statement on an actual basis for MAS for the year ended 31 May 2007.

(14 marks)

点击查看答案