Week 5- Topic 4 Homework
4.8 State the different types of budgets that may be prepared to construct the
Sales and fees budget
Production and inventory budget
Manufacturing overhead budge
Week 6- Topic 5 ( Cost-volume-profit analysis)
Explain the assumptions underlying costvolumeprofit (CVP) analysis.
Enables to consider they way cost changes and the main factors that
influence those changes.
Costs have been fixed, vari
Week 4- Topic 3 questions
Business planning and measuring performance measurement.
Q1: List and describe the different types of potential audience for a firm's business
The business plan allows all shareholders of the organization t
Topic 8- Business Transactions
Explain what a transposition error is and identify how you can detect that one has
Transportation error occurs when two digits recorded in the transaction are
You can detect one when
Tutorial preparation questions relating to topic 2: 2.5, 2.7, 2.10, 2.11, 2.28
I will finance the business through my savings as it will be a sole
ownership, I will understand that liability is unlimited therefore any
financial difficulties I will repay m
Explain the nature and scope of investment decisions;
Describe and apply the concept of the accounting rate of return (ARR);
Explain and use the payback period (PP) method;
Discuss and calc
The terms accounts receivable and creditors mean the same thing. (False.)
Accounts receivable: money owed to a company by its debtors.
Creditors: It is a person or firms to whom money is owed.
The balance sheet is a financial statement that show
ACC/ACF1200 Week 2 solutions
Open-ended question suggested response:
The objective of requiring entities to produce a set of four main standardized financial statements is to ensure that
information about the entities financial affairs is made available t
Topic 2 Business structures
2.5: You are a friend of Lucy Lu who is thinking about starting a business to sell her
handmade quilts. Advise Lucy on the four factors that should be considered before
Tutorial week 4 question
RQ 1,4,8, 3.4, 3.6, 3.24
RQ 1. List and describe the different types of potential audience for a firm's business plan.
(Internal & external owner)
Business idea and goals, mission statement and preparation of business plans, train
10.4 Describe the users who would be interested in the financial position and performance
of an entity and explain their interest.
10.5 Explain if the following statements are true or false for an entity using the accrual
method of accounting.
Business planning and
These lecture slides contain a recap of some of the main theoretical issues
included in topic 1, with many examples where the theory is applied to
questions, exercises and cas
Define fixed, variable and mixed costs and understand the nature of these
types of costs;
Prepare a cost-volume-profit (CVP) analysis for a single product;
Recognise the impact of o
Costing and pricing in an entity
Define a cost object and explain how cost information is used;
Classify costs into direct costs and indirect costs for individual cost objects;
Discuss the allocation process f
Suggested answer (ARR)
Accounting rate of return = Average profit (or cash flows less depreciation)
= [ ($24,000 per year x 10 depreciation $130,000) /10
[ ($130,000 + $0) / 2 ]
= Average profit