Faculty of Arts, Business & Social Sciences – Assessment Brief for Students–...

Question

Faculty of Arts, Business & Social Sciences – Assessment Brief for Students– 2019/2020																							Module code and   title																																															4AC012 Finance and Accounting for Managers																														Module leader																																																									Samia Mahmood																														Diet																												First attempt																																																		Assessment   type																																																																	24 Hour Time   Constrained Assessment																																		Submission   date																																																																	Commences 13th							May   2020 14:00 hours due for submission 14th							May 2020 13:59 hours																																				Submission   method																																																											Online submission via Canvas																								Assessment   type																																																																	Open Book																																		Assessment   weighting																																																																	100%																																																																																																			Assessment   brief																																																																																																		(if appropriate, please refer to   module assessment briefing document)																																																																																																																																																																																																																																																																																																				Instructions to Candidates:																																														There   is a 24-hour window from the stated start time to download this document,   complete your answers and upload your answer document back onto Canvas via   the link provided. It is advisable to upload your answers well ahead of this   deadline.																																		All answers   must be included in the answer document that you upload onto Canvas. Your   answers should preferably be submitted on a Microsoft Word document   template on canvas. In exceptional circumstances if you do not have access to   a computer/laptop then you may hand write your answers and upload   photographs.																						Your answers   must be your own independent work and should relate to knowledge gained   during this module. Your answer document will be passed through   anti-plagiarism software (Turnitin). Please see the University web site for   details of the policy on plagiarism.																																																																																						The   assessment paper is comprised of two																																										COMPULSORY																																																						sections. Begin each question on a new page.															Total marks available = 100																																																																									Section   A												– Question A1   - answer												ALL																									multiple-choice questions.													This question is worth 15 marks in   total.													Record your   answers for Question A1 on the first page of your answer document. Show the   question number and the letter which you believe to be the correct answer.																																		Question A2-												answer this question.														This   question is worth 5 marks.														Show the   question number and your answer. For Section A do not show your workings. No   marks will be given for workings for Section A.																																																											Section   B													– Question B1-   B4 -													answer   ALL four questions.													Each   question is worth 20 marks.														Total available marks for this section equals 80 marks.																										Show all workings in your answer document for   Section B.																																					A   formulae sheet is at the end of this brief.																								SECTION A – Answer ALL   questions (20 MARKS )												Question A1 – this question is   made up of multiple-choice questions worth a total of 15 marks																																																																											Management        accounting is															not															providing        information by product or department for decision-making																																					a)   True																								b)   False																																					1 mark																								2.   Calculate   the figure for “gross profit” given the following information:																								Closing inventory £3,927; Cost of   Goods Sold £19,713; Sales £43,570.																								a)   £39,643																								b)   £19,930																								c)   £15,786																								d)   £23,857																																					1 mark																																																			Which ratio is        required by all the companies to disclose on the face of their Profit        and Loss Account?																																					a)   Earnings   per share																								b)   Dividend   yield																								c)   Dividend   cover																								d)   Price/Earnings   ratio																																					1   mark																																					Which        of the following is the variable cost?																								a)   Property   Insurance																								b)   Rent   of buildings																								c)   Annual   audit fees																								d)   Raw   material used to make the products																																					1   mark																																																		Sales        for February were budgeted to be £16,500 but were actually £17,300. Rent        for the month was actually £2,700 compared to a budget of £2,500. What        were the variances?																								a)   Sales   £800 adverse variance, Rent £200 adverse variance																								b)   Sales   £800 adverse variance, Rent £200 favourable variance																								c)   Sales   £800 favourable variance, Rent £200 adverse variance																								d)   Sales   £800 favourable variance, Rent £200 favourable variance																																					2   marks																																					Which of the following statement        is true?																								a)   Ordinary   shareholders have legal right to receive a dividend each year																								b)   Ordinary   shareholders have no legal right to receive a dividend each year																																					1 mark																																					Continued…………………………….																																																																																								In        management accounting															controlling															is the process of determining whether        planned goals are being met.																																					a)   True																								b)   False																																					1 mark																																																			Which of the        following are indirect costs?																																					(i)   Sales   reps’ travelling expenses																								(ii)   Factory   insurance																								(iii)   Telephone   bill																								(iv)   Factory   manager’s salary																																																a)   None   of them																								b)   (ii),   (iii) and (iv)																								c)   (ii)   and (iii) alone																								d)   All   of them																																					1 mark																																					Which        of the following is a long-term liability?																																					a)   Bank   overdraft																								b)   Trade   Payable																								c)   Bank   loan due to be repaid in 13 months’ time																								d)   VAT   owed to Her Majesty’s Revenue & Customs (HMRC) at balance sheet date																																					1 mark																																																			An extract        from analysis performed on a company’s accounts shows the following:																																					2018 2019												Inventory   turnover 5.2 times 4.8 times												Gearing 18% 27%																																				What   can be concluded from these results?												a)   Efficiency   of the company has improved, gearing has improved																								b)   Efficiency   of the company has declined, gearing has improved																								c)   Efficiency   of the company has improved, gearing has got worse																								d)   Efficiency   of the company has declined, gearing has got worse																																					2 marks																																																																																																															Continued…………………………….																																																																																								Calculate        the unit cost of an item made in a batch of 2,000 items from the        following information:																																					Materials cost														£600																								Labour 20 hours @ £6 per hour												Overheads to be absorbed into batch at   a rate of £2 per direct labour hour												a)   36   pence																								b)   37   pence																								c)   38   pence																								d)   39   pence																																					2 marks																																					What        are the components of total cost?																								a)   Direct   material and direct labour only																								b)   Direct   labour and overhead (indirect cost) only																								c)   Overhead   (indirect cost) only																								d)   Direct   material, direct labour and overhead (indirect cost)																																					1 mark																																																																										Question A1 Total 15 Marks																																																													Question A2																								Laura owned a small coffee shop which   is a limited company. List five external parties who might find financial   information about the business useful and how they would use it?																																																														Question A2 Total 5 Marks																																																																										SECTION A Total 20 Marks																																																																																																																																																																																																																																											Continued……………………………..																																																SECTION B- Answer ALL   questions Question B1-B4 (80 MARKS):																									Question B1																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																										a)   The   biggest difference of company’s statement of financial position from sole   trader accounts is the “financed by” section including items such as Share   Capital, Share Premium account, Revaluation reserves and Retained Earnings   that make up total equity of the company. Following table is the financed by   / total equity section of Rocky plc for three years 2017-2019.																																																																																																																														Total Equity Section																																																																															2017 (£000)																																																																															2018 (£000)																																																																															2019 (£000)																																																																															Share Capital																																																	(200,000 shares @ £1 each)																																																																		(500,000 shares @ £1 each)																																																																																																															200																																																																																																																														500																																																																																																																														500																																																																															Share Premium account																																																	(200,000 shares @ £1 each)																																																																		(500,000 shares @ £1 each)																																																																																																															60																																																																																																																														150																																																																																																																														150																																																																															Revaluation reserves																																																														100																																																														120																																																														160																																																																															Retained Earnings																																																														150																																																														215																																																														180																																																																															Total Equity																																																														510																																																														985																																																														990																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																														REQUIREMENTS:																																Analyse   the changes in each item of total equity over three year’s period 2017-2019.																																	12   marks																																																																																				b)																																			A   company may have several different types of asset, but only one asset is   vital and that is cash.																																																	REQUIREMENTS																	:																																																																			(i) Explain why cash is an important asset   for the business.																			2   marks																																																																																																						(ii) Why cash is different from profit if   you buy or sell on credit? Explain by giving two examples																			6   marks																																																																																				TOTAL Question B1 20 MARKS																																																	Continued……………………………..																																																	Question B2:																																Mobius Limited, a manufacturing   company, is planning to bring a new product, the Super5, to the market and   has the following budgeted cost data:   £																																																	Selling   price per unit 130																																																	Direct   material cost per unit 35																																																	Direct   wages cost per unit 40																																																	Variable   overhead cost per unit 15																																																	Fixed   overhead per unit 17																																																	Profit   per Super5 23																																																	Total   fixed overheads attributable to the Super5 product are £340,000. The maximum   possible production capacity is 50,000 units. Mobius Ltd has budgeted to make   sales for the first year of 20,000 units.																																																	REQUIREMENTS																																																																			a)																																			Calculate the draft budgeted   contribution per unit																	2   marks																																																																			b)																																			Calculate the draft budgeted   break-even point																	2   marks																																																																			c)																																			Calculate the draft budgeted profit																	2 marks																																																																			d)																		Calculate   what the profit would be in each of the following situations, (considering   each in isolation)																																																	(i)   The   company manager, Mrs Emma, has managed to negotiate a better price with the   gas and electricity supplier, resulting in a cost saving of £14,000 fixed   costs.																																																	2 marks																																(ii)   If the selling price was £95, then 40,000   units could be sold, in the view of the Sales and Marketing manager.																																																	4 marks																																(iii)   Mr   Abbas, the Production Manager, has designed a product improvement which will   cost £5 per Super5. The Sales & Marketing manager thinks this will mean   that customers will be prepared to pay £127 for the product and that expected   sales would be 30,000 units.																																																	4 marks																																																																			e)   Would   you recommend either of the options in part (d) to Mobius Ltd?																				Justify   your answer and outline any concerns you may have.																																																																																																																																												4   marks																																																																																				TOTAL Question B2 20 MARKS																																																																																				Continued……………………………..																																																																																				Question B3																																																																							a)																																					There are many systems and processes   designed by the management of a company to manage risk and minimize chance of   error and fraud.																																																				REQUIREMENT																																		Explain internal control, internal   audit and external audit; giving examples where appropriate.																																																				8   marks																																																																							b)																																					Companies have access to a variety of   sources of finance, to fund their activities.																																																				REQUIREMENT																																		Choose four sources of funding that a   company may use and give one advantage and one disadvantage for each.																																																				12   marks																																																				TOTAL Question B3 20 MARKS																																																				Question B4:																																																				a)																																				Managers need to plan in advance to ensure that   enough resources are available at the right time in order to meet the organisation’s   objectives [goals] for the forthcoming year.																																																																						REQUIREMENTS																																																				(i) What is a budget?																			(2 marks)																																																																						(ii) What are the benefits of setting a   budget?																			(3 marks)																																																																						(iii) What are the potential problems in   using a budget?																			(3 marks)																																																																						8   marks																																																				b)																																				A manufacturing business has variable production   costs of £2 per unit and annual fixed costs of £60,000. A further cost is   that of the salary of the factory supervisor of £18,000 p.a. If more than   100,000 units of the product are made, then an additional factory supervisor   must be employed at the same salary.																																																																						REQUIREMENT																																		Calculate   the total cost of production and the cost per unit at the following   production levels:																																																						(i)																				60,000 units																																																																																																																																(ii)																				90,000 units																																																																																																																																(iii)																				130,000 units																																																																																																													12   marks																																																				TOTAL Question B4 20 MARKS																																																				End of Time Constrained Assessment (Formula   sheet on the next page)																																																																																																																																																																																										Ratios																																																																																																								Formulae																																																																																																								Gross Profit %																																																																																																																																																																								Gross Profit																																													x 100%																																																																Sales																																																																																																								Operating Profit %																																																																																																																																																																								Operating Profit																																													x 100%																																																																Sales																																																																																																								ROCE (Return on Capital Employed)																																																																																																																																																		Operating profit																																													x 100%																																																																Capital employed																																										Capital     Employed																						= Fixed Assets +Current     Assets – Current Liabilities																																																																																			Current Ratio																																																																																																																																																																								Current Assets																																																																Current Liabilities																																																																																																								Quick Ratio (Acid Test)																																																																																																																																																																								Current Assets – Inventory																																																																Current Liabilities																																																																																																								Account Receivable Day																																																																																																																																																		Receivable x 365																																																																Sales																																																																																																								Account Payable Days																																																																																																																																																																								Payable x 365																																																																Cost of Sales																																																																																																								Inventory Turnover																																																																																																																																																		Cost of sales (or goods sold)																																																																Average Inventory																																																																																																								The Gearing ratio																																																																																																								Loan																																													x 100%																																																																																							Capital employed																																																																																																								Dividend Yield ratio																																																																																																																																																																																																																					Dividend per Share																																												x 100%																																																																Market Price per Share																																																																																																								Earnings per Share (e.p.s.)																																																																																																																																																																																																																					Profit after tax and preference     dividends																																																																Number of Ordinary Shares																																																																																																								Dividend Cover:																																																																																																																																																																																																																					Profit after tax and preference     dividends																																																																Total Dividend paid																																																																																																								Price/Earnings Ratio																																																																(P/E Ratio)																																																																																																																																																																																																																					Market Price per Share (in pence)																																																																Earnings per Share (in pence)																																																																																																								Contribution per unit																																																																																																																																																																																														Sales value per unit – Variable Cost per unit																																																																																																																																																																								Total Contribution																																																																																																																																																																								Total Sales – Total Variable Cost																																																																OR																																																																Contribution per unit x No. of units																																																																																																								Profit																																																																																																																																																																								Total Contribution – Fixed Cost																																																																																																								Break-even point (units)																																																																																																																																																																																																																					Fixed Costs																																																																Contribution per unit																																																																																																								Margin of safety (units)																																																																																																																																																																								Budgeted sales units – Breakeven     sales units																																																																																																								Margin of safety (%)																																																																																																																																																																																																																					Budgeted sales units – Breakeven     sales units																																																																Budgeted sales units																																																																																																								Activity level to achieve target     profit (units)																																																																																																																																																																																																																					Fixed Costs + Target Profit																																																																Contribution per unit																																																																																																																																																																								Turnover required (£)																																																																																																								Units to be sold x selling price per     unit																																																																																																																																																																																																																																									Assessment   Criteria																																																																																																																											(The actual assessment components   for this assignment)																																																																																																																																																																																																																																																																								The proportions of the assignment should be																																																																																																																																																																																																																						Weighting																																																																											(If applicable)																																																																																																																																																																																																																																																																																																																												Question A1																																																																																																																																																																								15%																																																																																																																																																		Question A2																																																																																																																																																																																															5%																																																																																																																																																		Question B1																																																																																																																																																																								20%																																																																																																																																																		Question B2																																																																																																																																																		20%																																																																																																																																																		Question B3																																																																																																																																																		20%																																																																																																																																																		Question B4																																																																																																																																																		20%																																																																																																																																																																																																																																																																																																																									Pass mark																																																																																																																																																																																																																																																																																																																																																																																																			Postgraduate																																																																																					50%																																																																																																																																											Undergraduate																																																																																					40%																																																																																																																																											Other																																																																																																																																																																																																							(PSRB or   subject specific)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																								Performance   descriptors in use;																																																																																																																			·																															University of   Wolverhampton   Yes																															x No																																																																																																																																																					·																															Professional or Statutory   Body																															Yes  No 																																																																																																																						·																															Module specific																															Yes  No 																																																																																																																						·																															Other																																																																																														(specify below)																																																															Yes  No 																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																	Return   of assessments																																																																																																																																																																																					(Instructions   for return / collection of assessments																																																																																	)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																							Online submission via Canvas																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																						This assessment is testing Module Learning outcomes																																																																																																																																																																																																																																																																																																																																																			Tick if tested here																																																																																																																																																																																																																																																																																																																																																																																																																																												LO1																																																																																																																																																																							Identify the nature and behaviour of costs and their   relevance to business decision making.																																																																																																																																																																																																																																																																																																								ü																																																																																																																																																																																																																																																												LO2																																																																																																																																																																							Assess and comment on financial statements   and sources of finance																																																																																																																																																																																																																																																																																																								ü																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																									Your module guide and course handbook contain additional and important information regarding;																																																																																																																																																																																																																																																																																·																																															Submission of your work																																																																																																																																																																																																																																					·																																															Marking, feedback and moderation in accordance with the University of Wolverhampton Assessment Handbook																																																																																																																																																																																																																																					·																																															Extensions on submission dates *																																																																																																																																																																																																																																					·																																															Additional support *																																																																																																																																																																																																																																					·																																															Academic conduct with regards to cheating, collusion or plagiarism *																																																																																																																																																																																																																																					·																																															Links to appropriate sources of relevant information *																																																																																																																																																																																																																																																																																																																																																																													* Further information regarding these and other policies can be accessed through your student portal on wlv.ac.uk.																																																																																																																																																																																																																																																																																	Always																																																																																																																																																																																										keep a copy of your work and a file of working papers																																																																																																																																																																																						The requirement to keep a file of working papers is important. There may be circumstances where it is difficult to arrive at a mark for your work. If this is the case, you may be asked to submit your file and possibly meet with your tutor to answer questions on your submission.																																																																																																																																																																																						When you submit your work you will be required to sign an important declaration confirming that:																																																																																																																																																																																						·																																															The submission is your own work																																																																																																																																																																																																																																					·																																															Any material you have used has been acknowledged and appropriately referenced																																																																																																																																																																																																																																					·																																															You have not allowed another student to have access to your work																																																																																																																																																																																																																																					·																																															The work has not been submitted previously.																																																																																																																																																																																																																																																																																																																																																																																																																												The following information is important when:																																																																																																																																																																																						·																																															Preparing for your assignment																																																																																																																																																																																																																																					·																																															Checking your work before you submit it																																																																																																																																																																																																																																					·																																															Interpreting feedback on your work after marking.																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																									Module Learning Outcomes																																																																																																																																																																																																																																					Module Learning Outcomes are specific to this module, and are set when the module was validated.																																																																																																																																																																																																																																																																																																																															Assessment Criteria																																																																																										The module Learning Outcomes tested by this assignment, and precise criteria against which your work will be marked are outlined in your assessment brief.																																																																																																																																																																																																																																																																																																																																																																																																																												Performance Descriptors																																																																																																																																																																																																																																				Performance descriptors indicate how marks will be arrived at against each of the assessment criteria. The descriptors indicate the likely characteristics of work that is marked within the percentage bands indicated.																																																																																																																																																																																						To help you further:																																																																																																																																																																																																																																					Re-sit      opportunities are available for students who are unable to take the first      sit opportunity, or who need to re take any component.																																																																																																																																																																																						·																																															Refer to the VLE topic for contact details of your module leader / tutor, tutorial inputs, recommended reading and other sources, etc. Resit details will also appear on the VLE module topic.																																																																																																																																																																																																																																					·																																															The University’s Learning Information Services offer support and guidance to help you with your studies and develop your academic skills																																																																																																	http://www.wlv.ac.uk/lib/skills_for_learning/study_guides.aspx																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																			ANSWERS PROVIDED BY STUDENTS FOR 4AC012																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																														Student   Name																																																																																																																																																																																																																																																																																																						Insert you full name here																																																																																																																																																																																																																																																																																																							Student   Number																																																																																																																																																																																																																																																																																																						Insert your student number here																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																			School																																																																																																																																																																																																																																																																																																						Wolverhampton Business School																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																									Assessment   Type																																																																																																																																																																																																																																																																																																						Time constrained assessment																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																											Module   Code																																																																																																																																																																																																																																																																																																																																																									4AC012																																																																																																																																																																																																																																																																																																																																																									Duration   of Assessment																																																																																																																																																																																																																																																																																																						24 hours																																																																																																																																																																																																																																																																																																																																																																																																								0 mins																																																																																																																																																																																																																																																																																																							Module   Title																																																																																																																																																																																																																																																																																																																																																									Finance and Accounting for Managers																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																														Module   Leader																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																		Samia Mahmood																																																																																																																																																																																																																																																																																																																																																																																																												Date   of Assessment																																																																																																																																																																																																																																																																																																						Commences 13th																																																			May 2020 14:00 hours																																																																																																																																																																																																																																																									Due for submission 14th																																																				May 2020 13:59 hours																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																Assessment   type																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																								Time constrained assessment																																																																																																																																																																																																																																																																																																							Location																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																										Home																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																	SECTION A:																																																																																																																																																																																																																																																																																																						Answer to Question A1																																																																																																																																																																																																																																																																																																						MULTIPLE CHOICE ANSWER SHEET FOR 4AC012																																																																																																																																																			Student Name: Student Number:																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																			Answer																																																					(a, b, c or d)																																																																																																																																																													Question 1																																																																																																																																																													B																																																																																																																																																													Question 2																																																																																																																																																													D																																																																																																																																																													Question 3																																																																																																																																																																																																																																																																																																																																																																															Question 4																																																																																																																																																													D																																																																																																																																																													Question 5																																																																																																																																																													C																																																																																																																																																													Question 6																																																																																																																																																													A																																																																																																																																																													Question 7																																																																																																																																																													A																																																																																																																																																													Question 8																																																																																																																																																													B																																																																																																																																																													Question 9																																																																																																																																																													C																																																																																																																																																													Question 10																																																																																																																																																													C																																																																																																																																																													Question 11																																																																																																																																																																																																																																																																																																																																																																															Question 12																																																																																																																																																													D																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																													· Answers to Question A2																																																																																																																																																																						· The government																																																																																																																																																																												· Customers																																																																																																																																																																																		· Lenders																																																																																																																																																																																								· General Public																																																																																																																																																																																														· Management																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																												SECTION B:																																																																																																																																																																																																																																																																																																																																																																																																						Answers to Question B1																																																																																																																																																																																																																																																																																																																																																																																																						Answer to B1 (a)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																									Answer to B1 (b-i)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																									Answer to B1 (b-ii)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																									Answers to Question B2																																																																																																																																																																																																																																																																																																																																																																																																						Answer to B2 (a)																																																																																																																																																																																																																																																																																																																																																																																																						Contribution = Selling Price – Variable cost																																																																																																																																																																																																			Which is selling price = £130																																																																																																																																																																																																			Variable cost = £15																																																																																																																																																																																																			£130 - £15 = £115 contribution per unit																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																									Answer to B2(b)																																																																																																																																																																																																																																																																																																																																																																																																						Break-even points = Fixed Cost																																																																		÷ (Cost Price - Variable Costs) =in Units.																																																																																																																																																																																																																																																																				£340,000 ÷ (£130 - £15) = 2,600.385 unit.																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																									Answer to B2 (c)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																									Answer to B2 (d-i)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																												Answer to B2 (d-ii)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																												Answer to B2 (d-iii)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																												Answer to B2 (e)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																							Answers to Question B3																																																																																																																																																																																																																																																																																																																																																																																																						Answer to B3 (a)																																																																																																																																																																																																																																																																																																																																																																																																																																																																								Internal Control																																																																		– This is the assuring process of a company or organisational objectives in dealing with operations, efficiency, Financial reports, Regulations and policies and compliance with law.																																																																																																																																																																																																																																																																					Internal Audit																																																																		– Is what provides assurance and effective operating system to an organisation about risk management, governance and internal control. Examples:																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																														Answer to B3(b)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																				Answer to Question B4																																																																																																																																																																																																																																																																																																																																																																																																						Answer to B4 (a-i)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																									Answer to B4 (a-ii)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																									Answer to B4 (a-iii)																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																									Answer to B4(b)

SECTION A – Answer ALL questions (20 MARKS )

Question A1 – this question is made up of multiple-choice questions worth a total of 15 marks

Question A2

SECTION B- Answer ALL questions Question B1-B4 (80 MARKS):

Question B1

Question B2:

Question B3

Question B4:

SECTION A:

Answer to Question A1

SECTION B:

Answers to Question B1

Answer to B1 (a)

Answer to B1 (b-i)

Answer to B1 (b-ii)

Answers to Question B2

Answer to B2 (a)

Answer to B2(b)

Answer to B2 (c)

Answer to B2 (d-i)

Answer to B2 (d-ii)

Answer to B2 (d-iii)

Answer to B2 (e)

Answers to Question B3

Answer to B3 (a)

Answer to B3(b)

Answer to Question B4

Answer to B4 (a-i)

Answer to B4 (a-ii)

Answer to B4 (a-iii)

Answer to B4(b)

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