2019年山东ACCA报名条件

2 The Rubber Group (TRG) manufactures and sells a number of rubber-based products. Its strategic focus is channelled

through profit centres which sell products transferred from production divisions that are operated as cost centres. The

profit centres are the primary value-adding part of the business, where commercial profit centre managers are

responsible for the generation of a contribution margin sufficient to earn the target return of TRG. The target return is

calculated after allowing for the sum of the agreed budgeted cost of production at production divisions, plus the cost

of marketing, selling and distribution costs and central services costs.

The Bettamould Division is part of TRG and manufactures moulded products that it transfers to profit centres at an

agreed cost per tonne. The agreed cost per tonne is set following discussion between management of the Bettamould

Division and senior management of TRG.

The following information relates to the agreed budget for the Bettamould Division for the year ending 30 June 2009:

(1) The budgeted output of moulded products to be transferred to profit centres is 100,000 tonnes. The budgeted

transfer cost has been agreed on a two-part basis as follows:

(i) A standard variable cost of $200 per tonne of moulded products;

(ii) A lump sum annual charge of $50,000,000 in respect of fixed costs, which is charged to profit centres, at

$500 per tonne of moulded products.

(2) Budgeted standard variable costs (as quoted in 1 above) have been set after incorporating each of the following:

(i) A provision in respect of processing losses amounting to 15% of material inputs. Materials are sourced on

a JIT basis from chosen suppliers who have been used for some years. It is felt that the 15% level of losses

is necessary because the ageing of the machinery will lead to a reduction in the efficiency of output levels.

(ii) A provision in respect of machine idle time amounting to 5%. This is incorporated into variable machine

costs. The idle time allowance is held at the 5% level partly through elements of ‘real-time’ maintenance

undertaken by the machine operating teams as part of their job specification.

(3) Quality checks are carried out on a daily basis on 25% of throughput tonnes of moulded products.

(4) All employees and management have contracts based on fixed annual salary agreements. In addition, a bonus

of 5% of salary is payable as long as the budgeted output of 100,000 tonnes has been achieved;

(5) Additional information relating to the points in (2) above (but NOT included in the budget for the year ending

30 June 2009) is as follows:

(i) There is evidence that materials of an equivalent specification could be sourced for 40% of the annual

requirement at the Bettamould Division, from another division within TRG which has spare capacity.

(ii) There is evidence that a move to machine maintenance being outsourced from a specialist company could

help reduce machine idle time and hence allow the possibility of annual output in excess of 100,000 tonnes

of moulded products.

(iii) It is thought that the current level of quality checks (25% of throughput on a daily basis) is vital, although

current evidence shows that some competitor companies are able to achieve consistent acceptable quality

with a quality check level of only 10% of throughput on a daily basis.

The directors of TRG have decided to investigate claims relating to the use of budgeting within organisations which

have featured in recent literature. A summary of relevant points from the literature is contained in the following

statement:

‘The use of budgets as part of a ‘performance contract’ between an organisation and its managers may be seen as a

practice that causes management action which might lead to the following problems:

(a) Meeting only the lowest targets

(b) Using more resources than necessary

(c) Making the bonus – whatever it takes

(d) Competing against other divisions, business units and departments

(e) Ensuring that what is in the budget is spent

(f) Providing inaccurate forecasts

(g) Meeting the target, but not beating it

(h) Avoiding risks.’

Required:

(a) Explain the nature of any SIX of the eight problems listed above relating to the use of budgeting;

(12 marks)

(b) Explain Mintzberg’s five organisational components. (10 marks)

2 Assume that today’s date is 1 July 2005.

Jan is aged 45 and single. He is of Danish domicile but has been working in the United Kingdom since 1 May 2004

and intends to remain in the UK for the medium to long term. Although Jan worked briefly in the UK in 1986, he

has forgotten how UK taxation works and needs some assistance before preparing his UK income tax return.

Jan’s salary from 1 May 2004 was ￡74,760 per annum. Jan also has a company car – a Jaguar XJ8 with a list price

of ￡42,550 including extras, and CO2 emissions of 242g/km. The car was available to him from 1 July 2004. Free

petrol is provided by the company. Jan has other taxable benefits amounting to ￡3,965.

Jan’s other 2004/05 income comprises:

￡

Dividend income from UK companies (cash received) 3,240

Interest received on an ISA account 230

Interest received on a UK bank account 740

Interest remitted from an offshore account (net of 15% withholding tax) 5,100

Income remitted from a villa in Portugal (net of 45% withholding tax) 4,598

The total interest arising on the offshore account was ￡9,000 (gross). In addition, Jan has not remitted other

Portuguese rental income arising in the year, totalling a further ￡1,500 (gross).

Jan informs you that his employer is thinking of providing him with rented accommodation while he looks for a house

to buy. The accommodation would be a two bedroom flat, valued at ￡155,000 with an annual value of ￡6,000. It

would be made available from 6 August 2005. The company will pay the rent of ￡600 per month for the first six

months. All other bills will be paid by Jan.

Jan also informs you that he has 25,000 ordinary shares in Gilet Ltd (‘Gilet’), an unquoted UK trading company. He

has held these shares since August 1986 when he bought 2,500 shares at ￡4.07 per share. In January 1994, a

bonus issue gave each shareholder nine shares for each ordinary share held. In the last week all Gilet’s shareholders

have received an offer from Jumper plc (‘Jumper’) who wishes to acquire the shares. Jumper has offered the following:

– 3 shares in Jumper (currently trading at ￡3.55 per share) for every 5 shares in Gilet, and

– 25p cash per share

Required:

(a) Calculate Jan’s 2004/05 income tax (IT) payable. (11 marks)

15 A trader who fixes her prices by adding 50% to cost actually achieved a mark-up of 45%.

Which of the following factors could account for the shortfall?

1 Sales were lower than expected.

2 The opening inventories had been overstated.

3 The closing inventories of the business were higher than the opening inventories.

4 Goods taken from inventories by the proprietor were recorded by debiting drawings and crediting purchases with

the cost of the goods.

A All four factors

B 1, 2 and 4 only

C 2 only

D 3 and 4 only