Question 1 (15 marks)

Selectone (1) company from the article on 20 made-in-Singapore brands.

You can find the list of companies here:https://www.visitors.sg/component/k2/20-made-in-singapore-brands

1. Describe the company's operationsin your own words.

[1 mark]

1. Identifyone (1) example of each of the expenses below. The examples identified should be specific to the company you've selected.

(Note: A different expense must be identified for each classification. For instance, an expense that you provide cannot be used for both variable and direct cost classification)

1. Variable cost
2. Direct cost
3. Period cost
4. Sunk cost

Explain your answers for each cost. You may use the following template to answer this question. State your source of information, if any, in your explanation as well.

Name of the expense	Classification	Explain your answer
	Variable cost	This is a variable cost because
	Direct cost	This is a direct cost because
	Period cost	This is a period cost because
	Sunk cost	This is a Sunk cost because

[6 marks]

1. Based on your chosen company, which costing system is more suitable for the company

Scenario 1:	absorption or variable costing system
Scenario 2:	job order costing or process costing

Explain your rationale for your choice of each scenario clearly.

[4 marks]

The marking criteria for this section are shown below.

Criteria	Marks Allocated	Description
Description of business	1 mark	The business was well described.
Classification of Expenses	6 marks	Application of management accounting concepts to explain the classification. Clarity of explanation and analysis of data (if any) to support the classification.
Selection of costing method	4 marks	The costing system selected was suitable. Relevant explanation is provided.
Oral Questioning	4 marks	Ability to answer to lecturer's questions

(18 marks)

Suppose you are keen to start a home bakery.

Your business should be selling at leastthree items. For the home bakery.

1. Research and come up with a list of all the fixed and variable costs involved (e.g., cost of raw materials, depreciation of baking ovens) and the appropriate selling prices for the home bakery. You may search on the internet or visit actual businesses. State your source of data clearly. [4 marks]

	Fixed cost	Variable cost
Equipment	$5000
Raw material		$2500
Utility expenses		$600
Packaging		$500
Insurance	$700

The appropriate selling prices for the home bakery for cookie $1.5 cake $20 donut $2

1. Conduct a multi-product break-even analysis forone month. Your analysis should report on the break-even number of units to be sold and a reasonable sales mix.

Cookie

Raw material

[6 marks]

1. Describe how your answer in part (a) will affect your decision to start the business and/or the way you will operate it.

[4 marks]

The marking criteria for this section are shown below.

Criteria	Marks Allocated	Description
Data	4 marks	Data presented are reasonable and the sources of the data are cited clearly
Calculations	6 marks	Detailed working steps, correct and clearly shown
Analysis	4 marks	Application of management accounting concepts to analyze the cost/price data
Oral Questioning	4 marks	Ability to answer to lecturer's questions