Management Accounting
School of Business
BTEC HND in Management/Marketing/Information Technology
Management Accounting
Mary Jay Angela Tinimbang
Mrs. Rosalinda A. Caoili
February 15, 2013
1st Year Business Management
Section A
Academic Year 2013-2014
Contents
Case 1 3 Classify the different types of costs (1.1) 4 Case 2 6 Use different costing methods (1.2) 7 Case 3 8 Calculate costs using appropriate techniques (1.3) 9 Case 4 12 Analyse cost data using appropriate techniques. (1.4) 13 Case 5 14 Prepare and analyse routine cost reports (2.1) 15 Use performance indicators to identify potential improvements (2.2) 16 Suggest improvements to reduce costs, enhance value and quality. (2.3) 17
Case 1 RAINBOWEAR produces custom-designed dresses for retail sales. The shop sold 50 dresses last month. Costs incurred during last month’s operation include the following: a. Cost of fabric used in dresses $60,000 b. Wages of dressmakers $5,000 c. Wages of dress designers $4,000 d. Wages of sales personnel $1,000 e. Wages of designers who experiment with new $3,000 fabrics and dress designs f. Wages of the employee who repairs the shop’s $2,000 pattern and sewing machines g. Salary of the owner’s assistant $1,200 h. Cost of the new sign displayed in front of the retail shop $400 i. Cost of electricity used in the pattern department $200 j. Depreciation on pattern machines and sewing machines $10,000 k. Cost of advertisements in local media $800 l. Cost of hiring a plane and a pilot to fly along the beach $1,400 pulling a banner advertising the shop m. Cost of insurance for the production employees $2,000 Rent for the building $6,000 Apportion the rent based on the ff: n. Half of the building’s first floor is used for administrative offices. $1,500 o. The other half of it is used for the retail sales shop $1,500 p. The second
BTEC HND in Management/Marketing/Information Technology
Management Accounting
Mary Jay Angela Tinimbang
Mrs. Rosalinda A. Caoili
February 15, 2013
1st Year Business Management
Section A
Academic Year 2013-2014
Contents
Case 1 3 Classify the different types of costs (1.1) 4 Case 2 6 Use different costing methods (1.2) 7 Case 3 8 Calculate costs using appropriate techniques (1.3) 9 Case 4 12 Analyse cost data using appropriate techniques. (1.4) 13 Case 5 14 Prepare and analyse routine cost reports (2.1) 15 Use performance indicators to identify potential improvements (2.2) 16 Suggest improvements to reduce costs, enhance value and quality. (2.3) 17
Case 1 RAINBOWEAR produces custom-designed dresses for retail sales. The shop sold 50 dresses last month. Costs incurred during last month’s operation include the following: a. Cost of fabric used in dresses $60,000 b. Wages of dressmakers $5,000 c. Wages of dress designers $4,000 d. Wages of sales personnel $1,000 e. Wages of designers who experiment with new $3,000 fabrics and dress designs f. Wages of the employee who repairs the shop’s $2,000 pattern and sewing machines g. Salary of the owner’s assistant $1,200 h. Cost of the new sign displayed in front of the retail shop $400 i. Cost of electricity used in the pattern department $200 j. Depreciation on pattern machines and sewing machines $10,000 k. Cost of advertisements in local media $800 l. Cost of hiring a plane and a pilot to fly along the beach $1,400 pulling a banner advertising the shop m. Cost of insurance for the production employees $2,000 Rent for the building $6,000 Apportion the rent based on the ff: n. Half of the building’s first floor is used for administrative offices. $1,500 o. The other half of it is used for the retail sales shop $1,500 p. The second