【正文】 ACCA F5 教材 PERFORMANCE MANAGEMENT 教材 （ 下 ） Test your understanding 12 Original budget Flexed budget Actual Variances Sales 100 200 196 4 adverse Variable costs (30) (60) (62) 2 adverse Fixed costs (10) (15) (16) 1 adverse Profit 60 125 118 7 adverse Test your understanding 13 (a) 2 Flexible budget Actual Variance Number of units sold (000) 720 270 80 $000 $000 $000 Sales 1,152 1,071 (81) Variable cost of sales Materials 189 144 45 Labour 270 288 (18) Overheads 36 36 0 Fixed labour cost 100 94 6 595 562 33 Gross profit 557 509 (48) Selling and distribution costs Fixed 72 83 (11) Variable 162 153 9 Administration costs Fixed 184 176 8 Variable 54 54 472 466 6 Net profit 85 43 (42) Possible reasons Sales (adverse) – the volume variance is favourable so the adverse variance must be due to price being less than planned. Materials (favourable) – could be due to bulk purchase, resulting in a lower unit price. Variable labour (adverse) – could be due to inefficient working by direct labour. Fixed labour (favourable) – could be due to employees leaving and not being replaced. Fixed selling overheads (adverse) – could be due to additional fixed advertising costs. Variable selling overheads (favourable) – could be due to lower running costs of distribution vehicles. Fixed administration overheads (favourable) – better puter systems reduces the number of accountants needed! Note: There are many other possible reasons for the variances. (b) The original statement was of no use as there are volume variances paring 640,000 units with 720,000 units. To be fair, the budget needs to be flexed to the actual level of 720,000 in order to pare ?like with like?. (c) (i) Problems of forecasting with flexible budgets include the following: General problems: These must be overe in any budgeting system, . predicting volume and other internal estimates along with macroeconomic factors such as inflation and the interest rate. Separation of fixed and variable costs: Whereas separating out a gas bill between standing charge and usage is relatively straightforward, labour is more convoluted especially if pay structure is plicated and involves an element of both (. piece rate plus fixed bonuses). Nature of fixed costs: In the longterm, all costs are variable. An apparently fixed cost will turn out to be a stepped cost, . the need to hire a new machine once output reaches a certain level. Historical information: Standards must be kept up to date as much as possible but the past is not necessarily an indicator the future, . increased mechanisation may alter the standard times taken. (ii) Change Activity level ($000): 640 760 120 Overheads ($000) 32 37 Stepped cost (1) 32 36 4 Variable cost per unit = 1204 = Fixed cost = 32 640 = 4 Therefore flexed budget for 720 would be ($000) Fixed cost Variable cost (720 ) Test your understanding 14 The mobile phone market is intensely petitive so a pany will need sophisticated systems to gather information about the market and petitors. The market is also fast changing so a rolling budget approach may be suitable to keep budget target up to date. It will be very important to incorporate the latest information into budgets and a participative approach will be important as production managers and sales managers may have local knowledge which would improve the budgeting process. Test your understanding 15 Internal information will be required from the: Sales department relating to volume and estimated collection periods the production manager will estimate material, labour and overhead usage the purchasing manager will estimate material prices and payment terms human resources will forecast pay rates, bonus payments and overtime requirements. The finance office may forecast payments of interest, dividends and general office costs. External information may be required relating to forecast interest rates, tax rates, payment terms for tax, exchange rates, inflation, etc. Test your understanding 16 An analysis of overheads should be carried out to determine the proportion that have identifiable cost drivers which differ from the normal volume related cost drivers which may be used when carrying out incremental budgeting. If a substantial volume of overhead is nonvolume related then implementing ABB may lead to more accurate planning and control. Issues, which should then be considered include: the development or purchase of a suitable puter system to support an ABB process。 training of staff to operate and interpret the information produced。 development of an implementation plan and whether this should run in tandem with the existing process for a trial period. Test your understanding 17 Advantages Issues, which should then be considered include: Standard format can be used which is easily understood throughout the anisation. ?Whatif?? analysis can be carried out easily to test different assumptions. Cash budget can be linked to other functional budgets and the ine statement and balance sheet so that changes can be linked between budgets. Look up tables can be used so that, for example, if price levels change these can be input in one place in the spreadsheet and the effects can be carried throughout the budget. Different managers may be able to input information into the spreadsheet if it is held on a shared drive. Dangers: If there is an error in the cash budgeting model this may be overlooked and the anisation will be using inaccurate information. Information may be accidentally changed or deleted. Data used will s