Question 1 a) Explain the terms throughput-contribution and production bottleneck'. (5 marks) b) Camy and Zelot...
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Question 1 a) Explain the terms throughput-contribution and production bottleneck'. (5 marks) b) Camy and Zelot are the manager in-charge of separate divisions within the XYZ group of companies, selling products with almost similar cost structures. The following information is available for both their divisions for the month of Apil 2022. Camy Zelot $70 $60 $23 $24 $15 $14 16,000 20,000 Sales (units) 15,000 18,000 Fixed overheads (inclusive of $100,000 for non-production overheads) of $440,000 per month are absorbed across the normal monthly production level is 15,000 units. Assume a bottleneck capacity of 20,000 labor hours in each division. Neither Camy nor Zelot had any opening inventory of raw material or components. Required: Selling price per unit Direct material per unit Direct labor per unit Production (units) Show with all relevant calculations, which manager would benefit if financial rewards were given based on the throughput accounting ratios. (15 marks) (Total: 20 marks) Question 2 a) Discuss what is environmental management accounting and why is managing environmental costs is becoming more important to many companies nowadays? (10 marks) b) Discuss the FOUR (4) categories of environmental costs that companies need to identify for preparing the Quality Cost Report. Why is the Quality Cost Report important? (10 marks) Question 1 a) Explain the terms throughput-contribution and production bottleneck'. (5 marks) b) Camy and Zelot are the manager in-charge of separate divisions within the XYZ group of companies, selling products with almost similar cost structures. The following information is available for both their divisions for the month of Apil 2022. Camy Zelot $70 $60 $23 $24 $15 $14 16,000 20,000 Sales (units) 15,000 18,000 Fixed overheads (inclusive of $100,000 for non-production overheads) of $440,000 per month are absorbed across the normal monthly production level is 15,000 units. Assume a bottleneck capacity of 20,000 labor hours in each division. Neither Camy nor Zelot had any opening inventory of raw material or components. Required: Selling price per unit Direct material per unit Direct labor per unit Production (units) Show with all relevant calculations, which manager would benefit if financial rewards were given based on the throughput accounting ratios. (15 marks) (Total: 20 marks) Question 2 a) Discuss what is environmental management accounting and why is managing environmental costs is becoming more important to many companies nowadays? (10 marks) b) Discuss the FOUR (4) categories of environmental costs that companies need to identify for preparing the Quality Cost Report. Why is the Quality Cost Report important? (10 marks)
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Quiz 1 a Throughputcontribution is defined as the sales revenue less the direct costs ie the contribution to fixed costs and profits The production bo... View the full answer
Related Book For
Cambridge International AS & A Level Computer Science
ISBN: 9781510457591
1st Edition
Authors: David Watson, Helen Williams
Posted Date:
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