Smoking Should be Banned in All Public Places Essay -- Papers Argument

Smoking Should be Banned in All Public Places Every year thousands of people die because of having cancer or other baccy related illnesses due to pot. Smoking is seen everywhere from our own television screens to even the world wide web the internet. Tobacco is the substance that is in these cigargonttes. These tobacco products are promoted through tobacco ads that are found almost everywhere you turn. They are in magazines, television screens, on the internet and even on cigarette boxes themselves. Alas, their tobacco ads do not tell the whole truth. Thus, many people fall prey to these tobacco cigarettes and once they try on one cigarette, they are hooked on it. The reason this is so is the nicotine present in it, which is a class of drug. So now, as you can see many have been addicted to the habit of smoking. at once in almost all parts of the world has much controversy because people some people agree about smoke in overt areas, but others who do not smoke complain about that so much so that it has now become an issue. So, should smoking be banned in all semipublic places? I would say yes, they should. Firstly, when many smokers smoke in public places, the people around them who do not smoke breathe in the smoke and they become passive smokers. These smokers can even get very ill due to the consequences of passive smoking. Researchers have even discovered that the onslaught of that kind of cigar smoke causes ninety-seven gases to malfunction. The Environment Protection Agency also reported that passive smoking causes 2500 to 3500 lung cancer deaths a year among non-smokers in just the U.S. alone. We may not know this but we... ...something that should be put into action. It is the only way smokers may reform their ways and start afresh. Although many others may also urge that air pollution does occur due to other factors, smoking is also a factor encouraging air pollution. So why not try s topping it while we can right now by taking a stand that smoking should be banned in all public places and turn it into a action that would prove the best all round? Smoke is very bad and the government should not authorize smoking in public places at all. It not only affects the people who smoke but also other innocent people. Moreover, if you smoke, you would have to think more about not only your own health but also for the other people whom you live with and who are around you. So, all in all, I conclude that smoking should be banned in all public places.

Capital Punishment: Costs Of The Death Penalty Essay -- essays researc

Capital Punishment Costs of The Death PenaltyLet us state that killing as a form of punishment is a moral anduniversally accepted practice. Would it then be acceptable to issue thisirreparable uphold to a select few while allowing others, equally accountable,to avoid it? It is acceptable to our criminal justice system for it seems to bestandard operating procedure. Many knocker the death penalty based on the "eyefor an eye" concept. There is certainly some merit to this argument and itseems quite fair and logical. Unfortunately our utilize of the death penalty isneither fair nor logical. Our criminal justice systems "lip service" to theage-old concept is an insulting disguise for such an obscurity of blondness andlogic. The death penalty is frivolous and discriminatory in its procedurebecause of the unreasonable prices we relent to execute certain groups at muchhigher rates than others.We pay different prices for using a death penalty. Sadly, today more thaneve r, the dollar seems to be the endlessly interchangeable standard of value.We strive to make bills, save bullion and when we spend money we do so with avalued return in mind. Accordingly, a popular argument contends that we spendtoo much money incarcerating prisoners for life. We probably do but the pricetag on issuing a death sentence according to a Florida study is $3.1 millioncompared to $1 million for a life sentence a 3100% difference (Walker 1994,108). Imagine your death bein...

Gross National Product :: essays research papers

Gross National Productgross national product Top 10 (2004) (currency turn rate)Countrygross national product ($ mill)1United States10,945,7922Japan4,389,7913Germany2,084,6314United Kingdom1,680,3005France1,523,0256China1,417,3017Italy1,242,9788Canada756,7709Spain698,20810Mexico637,159Gross National Product (GNP) is the total value of terminal goods and services produced in a year by domestically possess factors of production.Final goods are goods that are ultimately consumed rather than used in the production of another good. For example, a car interchange to a consumer is a final good the components such as tires sold to the car manufacturer are not they are intermediate goods used to make the final good. The same tires, if sold to a consumer, would be a final good. Only final goods are included when measuring national income. If intermediate goods were included too, this would lead to double tally for example, the value of the tires would be counted once when they are sold t o the car manufacturer, and again when the car is sold to the consumer.Only newly produced goods are counted. Transactions in live goods, such as second-hand cars, are not included, as these do not involve the production of new goods.Income is counted as part of GNP check to who owns the factors of production rather than where the production takes place. For example, in the case of a German-owned car factory operating in the US, the profits from the factory would be counted as part of German GNP rather than US GNP because the capital used in production (the factory, machinery, etc.) is German owned. The wages of the American workers would be part of US GNP, eon the wages of any German workers on the site would be part of German GNP.Gross Domestic ProductGDP Top 10 (2004) (currency qualify rate)CountryGDP ($ mill)1United States10,435,2842China5,409,8523Japan4,326,4444Germany2,400,6555United Kingdom1,794,8586France1,747,9737Italy1,465,8958Canada958,3909Spain836,10010Mexico626,888G ross Domestic Product (GDP) is the total value of final goods and services produced within a countrys borders in a year.GDP counts income according to where it is earned rather than who owns the factors of production. In the above example, all of the income from the car factory would be counted as US GDP rather than German GDP.To convert from GNP to GDP you must subtract factor income receipts from foreigners that correspond to goods and services produced abroad using factor inputs supplied by domestic sources. To convert from GDP to GNP you must add factor input payments to foreigners that correspond to goods and services produced in the domestic country using the factor inputs supplied by foreigners.

Paideia: A Concept Contributing to the Education of Humanity and Societal Well-Being :: Philosophy

Contributing to the Education of Humanity and Societal Well-BeingABSTRACT For the sake of humanity, outward compulsion essential change into inward check. This is possible with the help of paideia. I use paideia instead of the equivocal German word Bildung, which comprises the meanings of education, formation, and cultivation. The core of my recently developed concept of paideia is that the educating soul does what has to be d hotshot in a certain situation. He or she works alone or together with the other. In doing a work the ameliorate individual tries to avoid any disadvantage for the other. The finished work represents the fruition of both, the individual as well as the other in a feeling toward self- veridicalization. This philosophy of education integrates into one single concept the two main traces of theories of education in European countries, namely the theories of self-being and those of selflessness. The concept of paideia is a possible exercise to actual problems s uch as the gap between the rich and the poor, the increase of violence, existing political radicalism, exploitation of natural resources and so on. According to this situation, not all people are educated very well. I claim that the expounded philosophy of education is able to contribute to the education of humanity. The combination of self-being and selflessness guarantees the optimal realization of sense in a given situation. This ensures that the common work of the individual and the other can develop very well, so that both are intertwined in the result. I. From Outward Compulsion to Inward Control For many years our present society has been characterized by sociologists and philosophers as being determined by three factors first science and technology, second mass media including new forms of communications like the Internet, and third individualism and pluralism. These three characteristics of the present situation point to the diminuation of human possibilities. For on one side we live in a society of alleged unlimited possibilities with respect to science, technology, communication and personal individuality. On the other side, however, real thinking and doing, real talk and real self-shaping seem to grow poor or become impossible. The prize we are obliged to pay for our present society, the prize of our possibilities is ironically that of the impossibility of our special possibilities, be they personal or social. So the strive for perfection unmasks itself as an unplanned deterioration in many realms of social and personal life.

The Tragedy Of Julius Caesar - Tragic Hero :: essays research papers

The Tragedy of Julius Caesar - Tragic Hero EssayIn the play The Tragedy of Julius Caesar by William Shakespeare, I saw two principal(prenominal) characters as tragic heroes. First, I saw Julius Caesar as a tragic hero because his will to gain power was so warm that he ended up losing his life for it. The fact that he could have been such a strong leader was destroyed when he was killed by conspirators. I saw Marcus Brutus as a second tragic hero in this play. Brutus was such a noble character that did not deserve to die. The main reason why he did die, however, was because he had led a conspiracy against Caesar and eventually killed him. These two characters were the tragic heroes of the play in my opinion.Both Caesar and Brutus were main characters in this play. Two sides formed during the play, and these two characters were the leaders of each side, respectively. Also, each character held a high rank in the Ro man society. Caesar was the ruler of the Roman Empire, and could fund amentally do whatever he wanted due to his outstanding power. Brutus was a general for the Empire and he was respected and was seen as a noble man and true Roman by many.Caesar and Brutus were truly noble people. Caesar was a dignified and courageous man. He gained his power through hard work and courage. However, Caesar was marked by a weakness he wanted too much power. This weakness proved to be fatal in the play. Brutus, on the other hand, was a strong leader throughout the whole play. People listened to him easily and he showed his nobility by always being open to others. Despite his good character, he did benefit one fatal mistake in judgment. He killed Caesar thinking he would gain too much power, yet it was truly his friend Cassiuss covetously of Caesar that truly snared him into the conspiracy.Each of the two characters gained some kind of wisdom before they came to an unhappy end. Caesar found out that one of his best friends, Brutus, had betrayed him just seconds before h e died from the daggers of the conspirators. Brutus also learns something before he dies. When he knows that Cassius had committed suicide, he too commits suicide. He knew that be doing that, Caesars ghost was truly avenged.

The Tragedy Of Julius Caesar - Tragic Hero :: essays research papers

The Tragedy of Julius Caesar - Tragic Hero EssayIn the job The Tragedy of Julius Caesar by William Shakespeare, I saw two main fibres as tragic heroes. First, I saw Julius Caesar as a tragic hero because his get out to gain power was so strong that he ended up losing his life for it. The fact that he could have been such a strong attraction was destroyed when he was killed by conspirators. I saw Marcus Brutus as a second tragic hero in this play. Brutus was such a noble character that did not deserve to die. The main reason why he did die, however, was because he had led a conspiracy against Caesar and eventually killed him. These two characters were the tragic heroes of the play in my opinion.Both Caesar and Brutus were main characters in this play. Two sides formed during the play, and these two characters were the leaders of each side, respectively. Also, each character held a high rank in the papistic society. Caesar was the ruler of the Roman Empire, and could basically do whatever he wanted due to his outstanding power. Brutus was a general for the Empire and he was respected and was seen as a noble man and true Roman by many.Caesar and Brutus were very noble people. Caesar was a dignified and courageous man. He gained his power through aphonic work and courage. However, Caesar was marked by a weakness he wanted too much power. This weakness proved to be fatal in the play. Brutus, on the other hand, was a strong leader throughout the whole play. People listened to him easily and he showed his nobility by always being open to others. condescension his good character, he did make one fatal mistake in judgment. He killed Caesar thinking he would gain too much power, yet it was actually his friend Cassiuss jealously of Caesar that truly snared him into the conspiracy.Each of the two characters gained some kind of wisdom before they came to an unhappy end. Caesar found out that one of his beat out friends, Brutus, had betrayed him just seconds before he died from the daggers of the conspirators. Brutus also learns something before he dies. When he knows that Cassius had committed suicide, he too commits suicide. He knew that be doing that, Caesars ghost was truly avenged.

Stock Market Assignment

Journal One The Stock Market Game First submission Date 26/10/2009 Table 1 friendship Sh atomic number 18s bought Sh be Price Change 3i meeting 2000 ? 2. 95 ? 5,900. 00 BP 2000 ? 5. 65 ? 11,300. 00 Prudential 4000 ? 6. 33 ? 25,320. 00 Sainsburys 2000 ? 3. 39 ? 6,780. 00 TOTAL ? 49,300. 00 CASH HELD ? 50,700. 00 Original amount ? 100,000. 00 net get ahead/Loss 0 I in allow for to a lower place chair an analysis of 3i Group. I reach already invested ? 5,900. 00 and beat bought 2000 deal forbiddens at the assign price of ? . 39. I forget be watching my get bys closely so that I can make a choice to sell, buy or hold my packets 3i Group Established in the 1945, is 1 of the UKs giantgest investors in private companies, it says its strategy is to go for early stage issue companies rather than the monetary wizardry favoured by by other ventured capitalists. It has been a big investor in technology companies in the past. The reason wherefore I chose thi s company is because I followed the advice given to me in lecture to not pick companies that I am familiar with.This chart shows the behaviour of the share price over 6 months. I ordain undertake an analysis of BP. I experience already invested ? 11,300 at a share price of ? 5. 65. The Beta for this company 0. 89 which is less than 1. This means that the security allow for be less so I may not make a profit on my return so there is a kidnapping of a risk. BP Oil giant BP move into the bracket of oil companies in the late nineties, with the acquisition of US c erstwhilerns Amoco and Atlantic Richfield. More geared to oil production and exploration than its main rivals.BP has moved into the reason Soviet Union to secure future production as its current key asset in the North Sea and Alaska wind down. The reason why I chose this company was because petrol prices take in been breathing turn up up, at one stage the price for a litre was less than ? 1. So I am taking a risk with this one save I am hoping it will turn step forward that I bind do some profit with the choices I nurture made. This chart shows the behaviour of the share price over 6 months I will undertake an analysis of Sainsburys. I pull in already invested ? 780. 00 at a share price of ? 3. 39. The Beta for this company is 0. 5 again this is less than 1. The security risk is going to be high with this company. I will keep a close eye on the share price if it falls I may stomach to sell my shares at the proper(a) time so I do not make a loss. Sainsburys J Sainsburys UK supermarket multitude was originally founded in the Drury lane in London 1869. The group began life as a listed company in 1973 which at the time was UK largest ever f plowation the group have moved into fiscal servicesI chose to invest in this company because the public need to purchase food it is a need not a want. There are many competitors pop out there such as Tesco and Asda, which would have been an obvious choi ce for me, but again I pattern I would take a risk and go for a company that I do not shop in. I logged on to www. digitallook. com and at the time Sainsburys was a top seller, because of this small man of breeding I persistent I was going to buy some shares from this company. I checked on another daytime and the shares had dropped, so I thought maybe Sainsburys is not the powerful company to choose.I chose it because it may be going up and down but may end up as a winner. Tesco, Asda and some other competitors were on watchdog about flat packed bikes this program may affect their Christmas sales. In this entry I will undertake an analysis of Prudential. I have already invested ? 25,320. This is the largest investment I have made but I believe it is the best one and I will make a return on my investment. The Beta for this company is 2. 24 so this proves I will make a return on my investment until right off there will be more of a higher risk, that I am willing to take.Pruden tial Insurance Group Prudential is one of the UK largest life in sure enoughrs. It has operations around the world, in the UK, US and Asia. As well as providing financial services under its own name the Prudential a kindred owns M+G investment. I chose this company because I thought it would be a good investment and I will make a profit. I have invested over ? 25,000 in this company as I am hoping to make a good return on my money. With all the companies that I have invested my money in I have set up a profile on www. digitallook. com.I was going to set up a spreadsheet in go by but I noticed on digital look that you can create a profile with how much shares you bought, the date and how much per share. Once this teaching is entered it will let you k flat how much money you have lost that day. For the second submission I will not go with this as I would rather set up a spreadsheet in my contemplative log and use different formulae to work out whether I have made a profit or loss . Second submission for the Fantasy Stock Market Game On the 12/11/09 I read in the subway system newspaper that Sainsburys has describe an 18. % rise in profits in the past six months but warned sales could slump in the beside half. The grocery stove posted healthy profits of ? 307m after like for like sales rose 5. 7% in the October. Share price rose two part after the profit figure bettered Sainsburys emerged as a winner in the recession as it tempted customers away from Tesco and other competitors, this was led by the advertisers (fed family for a fiver). Sainsburys affirm that market growth was likely to slow in the future as sales surge comes to an end.According to enquiryers at Nielsen Sainsburys sales increase was the lowest out of the big four trains. Sainsburys face a tougher challenge to maintain the sharp rises in the sales seen over the past year as food prices ease rear and are expected economic recovery curves. Sainsburys are hoping to compete in other areas as food sales came under pressure. I was willing to take a risk as risk is associated when investing money. On the BBC news Sainsburys verbalize they will not be able to generate sale growth like stomach year because of inflation.The share price on the 13/11/2009 was 339. 30p going down by 1. 40p which is 0. 03% decrease. With this information that I found out I decided to sell my shares, luckily I sold my shares on Thursday 12/11/2009 and the share price was again ? 3. 39. I bought 2000 shares this equals to ? 6780. 00. I havent made a loss as when I originally bought my shares the share price was the same. The other three companies have been doing well since I sold my Sainsburys shares, the have been up everyday. On the 18/11/09 I had made a profit of ? 380, which I was pleased about.One the 19/11/09 the share prices have fallen, nevertheless I am confident the three companies will make me a profit. broody Log Spreadsheet This is a part of my reflective log spreadsheet that I have been keeping so far to show I have been keeping an eye of my shares, the share prices and whether I am making a profit or a loss. Looking at this Table I have made a loss of ? 240 (3i group) comparison with the original amount I have made a profit of ? 500 with BP and with Prudential I have made a profit of ? 720. Comparison of the chosen companies with their competitors BP CompetitorsChevron and Texaco merged in 2001 creating the 2nd largest US based energy company and the 5th largest in the world. BP have signed their first big oilfield development contract. This should improve their shares, even though they are doing okay, once this contract is finalised I think it will benefit the company in more than one way. Exxon and Mobil completed there merger in 1999 to form what is now the worlds largest publicly traded energy company. Exxon and Mobil is involved in the exploration, production, manufacture, transportation and sale of crude oil, natural gas and petroleum products.The group also manufactures and markets petrochemicals, packaging films and speciality chemicals in more than 50 countries. The company is best know by the consumers as Esso and Mobil brand. Royal Dutch and Shell Transport completed their formal unification under a single new parent company RDS in July 2005. Shell is best known for the exploration and production of oil and natural gas alongside its retail petrol stations across UK. Shells other operations include petrochemicals that are used for plastic and detergents. The share prices to date for these companies are 26/11/2009Chevron Investment (CDI) $79. 64 Exxon Mobile $76. 47 Royal Dutch Shell (RDS)? 6. 50 3i Group Competitors This company has 2 top competitors Candover Investment and CVC Capital Partners Candover Investment Their objectives is to achieve above average growth in its net assets through capital gains from its investments and to earn satisfactory income for their shareholders CVC Limited This company provide investmen t is over 70 companies across all industries. This company was incorporated in 1984 and operates in Australia. The share prices to date for these companies are 26/11/2009Candover Investment(CDI)? 4. 95 27/11/2009 Candover Investment(CDI)? 4. 99 CVC Limited? 4. 18 (AUD A$7. 60) Prudential Competitors Prudential have three top competitors they are American International Group, AXA and Met life incorporated Their share to date are 26/11/2009 American International Group (AIG)? 21. 00 Converted this from $34. 68 AXA? 23. 95 Metlife inc. ?20. 96 By looking at this spreadsheet compared to the last submission I decided not to purchase any more shares. I have been continuing to keep an eye on my share prices not every day like when I started this assignment.Nevertheless when I do check them they have been progressively increasing. This boost my confidence that I have made the right choice when selecting the companies to invest in. I will not be selling these shares now. I have bought them a nd will keep them long term so that I make a profit. These three companies are a long investment. Time to time I have had a look at the Sainsburys shares to convince myself that I made the right decision in selling them. By doing this, this has confirmed my decision as the shares keep falling. The last time I checked them they were rest at ? . 24. Submission 4 Reflective Log What have you learned about the financial markets and, particularly, the stock markets? What are the importancess of these markets? After reading and inquiry that I have done my understanding of financial markets is as follows A financial market is a mechanism that allows people to buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect the efficient-market hypothesis.Financial markets have evolved significantly over several hundred years and are under going constant innovation for the improvement of liquidity. Both general markets (where many commodities are traded) and specialized markets (where alone one commodity is traded) exist. Markets work by placing many interested buyers and sellers in one place, thus making it easier for them to find each other. An economy which relies in the first place on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy.Financial markets facilitate The raising of capital (in the capital markets), the transfer of risk (in the derivatives markets) and International trade (in the gold markets) theses are used to match those who want capital to those who have it. Typically a borrower issues a receipt to the lender promising to pay back the capital. These emolument are securities which may be freely bought or sold. In return for lending money to the borrower, the lender wi ll expect some compensation in the form of interest or dividends.A stock market is a public market for the trading of company stock and derivatives at an agreed price these are securities listed on a stock exchange as well as those only traded privately. The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organisation specialised in the business of bringing buyers and sellers of the organisations to a listing of stocks and securities together. The stock market in the United States is NYSE while in Canada it is the Toronto Stock Exchange. Major European examples of stock exchanges include the London Stock Exchange, Paris Bourse, and the Deutsche Bourse.The stock market I had to use for this assignment was the FTSE 100. What is the overall consummation of your stock investment? Please critically review the variation of your portfolios constituent and value. Any particular events significantly affected your investment profits? I invested i n 3i Group, Bp, Prudential and Sainsburys. Once I submitted the third submission I decided to sell theses shares as they kept falling i did not want to lose any money at the time I thought I was making the right choice due to what was being reported in the news.Over the three months the share price fell/rose by x%. This compares with an overall rise of y% for the FTSE100. I made ? 2500 losses for the shares I invested, because BP petrol is expensive because the price of petrol is more than ? 1 per litre consumers has not got money anyway because they have been made redundant. Consumers need petrol or diesel if they can purchase this at a cheaper price but still get the quality then that is what they will do. The competitor is shell as there petrol is cheaper and of better quality. Prudential share price falls buy 20%. Reference (http//www. oneymarketing. co. uk/pensions/prudential-share-price-slumps-20/1007734. article). 3i Group Reference for Article http//www. thisismoney. co. uk The highest risers during the period were shares in hindsight such as insurance,clothes and food industries. I can see that the company I chose might not have been going to perform as come up shares in other sectors this is because unfortunately the companies I chose to invest one was getting taken over towards the end of the three months (Prudential) before this happened consumers sold there shares resulting in it falling by 20%. i Group is a smaa company that invests in new businesses that are starting out obviously the businesses that 3i group have chosen havent taken off as much as 3i Group would have wanted them too. The recession is still recovering, therefore it will still affect some stocks in the stock market If I could start over again, I would have invested in the supermarkets that are more known than Sainsburys such as Asda and Tesco. Then I would have bought shares in Cadburys and Next. I would have definitely have picked Cadburys as they are now owned by Kraft at one stage the share price increased up to 746p.I would have made a profit on the money I had invested. Suppose that you can do your stock investment again, what would you do differently this time? What kind of economic factors and investment techniques would you consider? And why? If I could do my stock investment again I would have looked at the different investment techniques to support my chose such as this website http//stocks. about. com/od/evaluatingstocks/a/063009error. htm. It gives an explanation in details what techniques I could have used and what information it would give me so that i could make an informative decision.I am 100% sure that if i did this I would have made a profit not a loss on the company I chose. At the time I thought I made the right choice but now I think it was a gamble I could have had a large loss than ? 2500. I know now there is more to it that picking some companies and buying shares. There was a variety of websites that I could have audit that woul d have made my stock investment profitable and different financial ratios I could have used the tools of Fundamental Analysis Stock Market Reflective Journal Started on Thursday 15th October 9. 00pmI logged onto Digital Look my first thought was the first company I am going to buy shares in will be Sainsburys because they are at the highest in the FTSE 100 table. But then I thought I need to be smart, a lot of money could go down the drain so, I am going to do some more research look at what is happening in the 3 months or more, not just with Sainsburys but with other companies as well. Friday 16th October 2009 9. 00am Logged onto the Financial Times website to have a change from the first one. I still have not decided what companies I am going to choose, or how many shares I am going to buy.Today I have decided I am going to do some research and have a close look to see if there is any important information in the news and see if there are a any articles that are relevant and th at could give me an idea what company not to go for as they may be in trouble. 3/11/2009 Watching BBC News Was watching the news when I got back from university. I heard something about share prices were down 10%. I was hoping it was not my four companies that I chose. Theses were Sainsburys, BP, Prudential and 3i Group. Thankfully it was BGS group. Royal Bank of Scotland and Lloyds Tsb are forced to sell off their branches.BGS group verbalize some companies that have loads of money can borrow as much as they want, but the thing is there is no demand. This was the day I decided its times to keep an eye on my shares, to see what their doing, are they falling or increasing? Am I making a profit or a loss? Do I need to sell my shares? Buy more or hold on to them. I have invested ? 50,000 and I would like to make a profit on it, even if it is a small amount. 7/11/09 Today I looked at my four companies, 3i, BP, Sainsburys were all down 3i group was in the top fallers so I felt a bit dis appointed but, Prudential was up today which I was pleased about.I have invested the most in this company and have taken on a bigger risk, I cannot afford to lose my money. What I have decided to do is set up a spreadsheet on excel and keep a daily track of whats going on with my shares up until the next submission date. With the other companies I was going to check my share price and make a decision. Today I will do some research and see what I can find about the companies I have chosen. I may buy the financial times and try to get an in depth understanding of what is happening in the market. I didnt buy the Financial Times but I looked on the digital look website and they saidThe supermarket chain Sainsburys half year results on Wednesday, having already worked out that it is unlikely to be able to maintain its impressive sale growth due to the effects of a reduction in inflation. After reading this on Monday 9/11/09 I am going to sell my shares especially if they have fallen agai n. I will keep track of this in my spreadsheet. Monday 9/11/09 I checked the share prices today and I am pleased that all my share prices have done for(p) up, even though I am still making a loss of ? 1180. This has improved from Saturday.I have lost a bit on Sainsburys but not enough to sell my shares. Today I have decided not to sell my shares, I am still going to take the risk and hopefully make myself some money. I will check the paper and see if there is any information about my companies. I may be able to get an incline on whats going to happen. I will give my Sainsburys shares a couple of days and check on Friday just to give this company a chance to improve. I believed Sainsburys will continue to decline, so just to recap on Friday 13th November 2009 if Sainsburys shares have gone down I will sell them. Tuesday 10/11/2009I didnt get chance to check my shares today, as I said yesterday I am giving Sainsburys a chance and as for the other companies I may as well check them all together. Thursday 12/11/2009 I read in the Metro paper this morning I the business and finance section Sainsburys has reported on a 18. 5% rise in the past six months but warned sales could slump in the next half. The grocery chain posted healthy profits of 307m after like for like sales rose 7% in the 28 week to October. Share price rose 2 percent after the profit figure increased, Sainsburys emerged as a winner in the recession as it tempted customers away from Tescos and Asda.This was lead by advertisers feed for a fiver. According to Nielsen Sainsburys sale increase was the lowest out of the big four chains. Sainsburys faces a tougher challenge to maintain the sharp rises in sales over the past year as food prices ease back. Sainsburys are hoping to compete in other areas. Friday 13/11/2009 I was willing to take a risk as risk is associated with money. In the news Sainsburys said they will not be able to generate sales growth like last year because of a fall in inflation The s hare price today is 339. 30 its has fallen by 1. 0p which is a 0. 03% decrease, so I have decided to sell my shares. The information that I found out yesterday confirmed for me its time to sell my shares otherwise it will continue to fall I will continue to make a loss and in conclusion lose my money, that is a risk I am not willing to take. So I sold my shares today at a price of 339. 30 2000 shares equals to ? 6780. 00. So I havent lost any money on these shares because on the 26/10/2009 the share price was the same 339. 30p. Monday 15/11/2009 I now have 3 companies the shares have gone down but still continue to grow.I will not sell these shares but will continue to hold them until the end. I feel that I will make a profit on one of these three companies. 17/11/2009 Today all of my shares have increased except for BP they have fallen (0. 40% which is 2p so it isnt to bad) 18/11/2009 Great day all of my have gone up Im not sure if I have made a profit yet as I need to refer to m y reflective journal spreadsheet this is where I keep, well try to keep a daily record of my shares and whether I have made a profit or a loss. Did some research today as I wanted to know the reason behind Prudential, as it is doing so well.I looked at www. investcorp. co. uk Stock Market News and Share prices and they said Insurance giant Prudential was one of the major risers after a price target upgraded from the Dutch broking group ING. They have upped its target price from 392p to 584p, but maintaining its hold rating for the shares. For me this proves my investment is a risk but its a great company choice. The saving grace of Prudential is its exposure to emerging markets through ING. This is reflective in the current share price. 19/11/2009 Checked my shares today and updated my spreadsheet.Had a look at Sainsburys even though I sold my shares I still like to have a look to see what was happening, and also it makes me feel so much better if they continue to fall, that means I have made the right decision. I will be keeping Prudential I feel this company is the one that will make me a profit. BP and 3i Group is growing steadily. 20/11/2009 Checked my shares again 2 of the companies have fallen, Prudential has risen that I am pleased about hoping I will make a profit. 31/03/2010 I have sold my shares and made a loss of ? 2500.

Cost Management Test Questions & Suggested Solutions

perplexity Test hesitations & Suggested Solutions by L. Muralidharan, FCA. , Grad. CWA. , harm perplexity TEST QUESTIONS & SOLUTIONS Question 1 Bharata Ltd is considering proposals for design miscellanys in one of a regula deck up of round the bend toys. The proposals atomic physical body 18 as follows (a) Eliminate some of the decorative stitching from the toy. (b) Use plastic look instead of glass eyes in the toys (two eyes per toy). (c) Change the filling bodily apply. It is proposed that speckle theoretical explanation left over from the body manufacture be used instead of the synthetic cloth which is before long used.The design change proposals have been considered by the focal point team and the following information has been gathered (a) Plastic eyes result monetary survey Rs. 15 per snow whereas the existing glass eyes speak to Rs. 20 per hundred. The plastic eyes bequeath be to a greater extent than liable to damage on debut into the toy. It is es timated that scrap plastic eyes bequeathing be 10% of the bar issued from stores as comp argond to 5% of issues of glass eyes at present. (b) The synthetic filling hearty bell Rs. 80 per tonne. One tonne of filling is sufficient for 2,000 soft toys. c) Scrap fabric to be used as filling material leave behind lease to be cut into sm tout ensemble(prenominal)er pieces before as and this will cost Rs. 0. 05 per soft toy. There is sufficient scrap fabric for the purpose. (d) The elimination of the decorative stitching is expect to reduce the appeal of the fruit, with an estimated f each(prenominal) in gross deals by 10% from the flow level. It is not felt that the change in eyes or filling material will adversely affect gross revenue intensity level. The elimination of the stitching will reduce mathematical performance cost by Rs. 0. 60 per soft toy. (e) The current sales level of the soft toy is 3,00,000 self-coloreds per annum.Apportioned set cost per annum be Rs. 4 ,50,000. The net reach per soft toy at the current sales level is Rs. 3. inevi control board (i) Using the information given in the question, prep be an analysis which takes the estimated effect on annual profit if all three proposals ar implemented, and which enables management to check whether severally proposal will achieve an annual organise profit growth of Rs. 25,000. The proposals for plastic eyes and the use of scrap fabric should be evaluated after the stitching elimination proposal has been evaluated. (ii) Calculate the ercentage reduction in sales due(p) to the stitching elimination at which the implementation of all three design change proposals would result in the akin gibe profit from the toy as that earned before the implementation of the changes in design. Question2 ABC Ltd manufactures a simple garden tool.At present the corporation is working at full capacity producing the three components A,B,C one of each existence required for the conference of the tool. All the mechanisms be capable of making all the components. Current cost entropy concerning and hundred tools are as follows Machine Hours 10 16 20 46 covariant Cost Rs. 6 32 32 42 142 Fixed Cost Rs. 10 2 32 22 76 Total Rs. 36 44 64 74 218 250 Components A Components B Components C Assembly Selling scathe The management is engaged in preparing next years work out an sum up in sales is to be provided for. The milling machinery already has to work at full machine capacity to meet current demand and no maturation in the present machine capacity can be effected for over 12 calendar months. Though facilities involving variable cost can be increase data very short notice. It is decided that one of the components will have to be bought out. The following quotations have been received L.Muralidharan, FCA. , Grad. CWA. , 1 Sreeram coach Point COST trouble TEST QUESTIONS SOLUTIONS Components A B C Price per 100 tools Price per 100 tools Price per 100 tools Rs 36 46 54 The Sales coach-and-four feels sure that he can sell at least 50% more tools than at present and probably 75% more provided the factory capacity is available. You are required to prepare a report for management handsome your recommendations as to which component should be tell from removed supplied for the coming year if production is change magnitude by 50% and 75% respectively.Question 3 The Chakrapani Ltds Cost behaviour is as follows turnout range in building blocks 0- 20000 20001 6 vitamin D0 65001 90000 90001 100000 Fixed cost Rs. one hundred sixty000 Rs. 190000 Rs. 210000 Rs. 250000 At an activity of 70000 social building blocks per year, variable be totality 280000. Full capacity is 100000 units per year. Required (1) Production is now lap at 50000 units per year with a sales set of Rs. 7. 50 per unit. What is the minimal number of additional units requisite to be sold in an unrelated mart at Rs. 5. 50 per unit to show a net profit of Rs. 3000 per year? 2) Production is now set at 60000 units per year. By how much whitethorn sales promotion costs be increased to bring production up to 80000 units and still earn a net profit of 5% of total sales if the sell expense is held at Rs. 7. 50? (3) If net profit is before long Rs. 10000 with hardened costs at Rs. 160000 and a 2% increase in price will leave units sold unchanged but increase pay by Rs. 5000. What is the present volume in units? Question 4 The manager of a business has received enquiries intimately publish three distinguishable images of advertising flickerlet.Information concerning these three booklets is sh knowledge below A Selling prices per 1000 leaf lets Estimated printing costs Variable per 1000 leaflets Specific fixed costs per month 40 2,four hundred 70 4,000 130 9,500 100 B 220 C 450 In addition to specific fixed costs a further Rs. 4,000/- per month would be incurred in renting special premises if any or all of the above three leaflets were printed. The minimum printing localise would be for 30,000 of each type of leaflet per month and the maximum possible order is estimated to be 60,000 of each leaflet per month.Required (i) Examine and comment upon the potential profitability of leaflet printing. Make whatever calculations you consider appropriate. (ii) assumptive that orders have been received to print each month 50,000 of both leaflet A and leaflet B visualise the quantity of leaflet C which would need to be ordered to produce an overall profit, for all three leaflets of Rs. 1,800/- per month. L. Muralidharan, FCA. , Grad. CWA. , 2 Sreeram instruct Point COST perplexity TEST QUESTIONS & SOLUTIONS (iii) It is possible that a special type of paper used in printing leaflets will be difficult to obtain during the depression few months.Three estimated consumption of this special paper for each type of leaflet is leaflet Leaflet Leaflet A B C 2 packs per 6 packs per 6 packs per 1000 leaflets 1000 leaflets 1000 leaflets Advis e the manager on the quantity of each leaflet which should be printed in order to maximise profit in the commencement month, if 50,000 of each type of leaflet have been printed there remains unfulfilled order of 10,000 for each type of leaflet and there 170 packs of special paper available for the rest of the month. What will be your reaction if the printing quantity is to be pack of 1000 leaflets.Question 5 For the departed 20 years a charity organisation has held an annual dinner and dance with the primary intention of education funds. This year there is concern that an economic recession may adversely affect both the number of persons attending the function and the advertising space that will be sold in the programme published for the occasion. Based on past experience and current prices and quotations, it is expected that the following costs and revenues will generate for the function. (Rs. ) Costs Dinner and dance Hire of premises Band and entertainers Raffle prizes Photogr apher Food at Rs. 2 per person (with a guarantee of 400 persons minimum) Programme Revenues Dinner and dance A fixed cost of Rs. 2,000, plus Rs. 5 per page Price of tickets medium revenue from Raffle Photographs Programme Average revenue from advertising Rs. 5 per person Re. 1 per person Rs. 70 per page Rs. 20 per person 700 2,800 800 200 A sub-committee, formed to examine more c getly the likely outcome of the function, discovered the following from previous records and accounts No. of tickets sold 250 to 349 350 to 449 450 to 549 550 to 649 No. of past occasions 4 6 8 2 20 L. Muralidharan, FCA. , Grad. CWA. , 3Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS & SOLUTIONS No. of programme pages sold 24 32 40 48 No. of past occasions 4 8 6 2 20 Several members of the sub-committee are in favour of using a market research adviser to carry out a quick enquiry into the likely number of tickets and the likely number of pages of advertising space that would be sold for this years dinner and dance. You are required to (a) Calculate the expected value of the profit to be earned from the dinner and dance this year (b) Recommend, with relevant supporting financial and cost data, whether or not the charity should spent Rs. 00 on the market research enquiry and indicate the possible benefits the enquiry could provide. NB All workings for tickets should be in steps of 100 tickets and for advertising in steps of 8 pages. Question 6 The budgeted production for menstruum 7 in the finishing department of a pottery manufacturer is, 4,500 cups, 4,000 saucers and 6,250 plates. In one monetary standard hour a direct operative is expected to be able to finish either, 30 cups, or 40 saucers, or 25 plates.During utmost 7, 400 direct labor party hours were worked and actual production was, 4,260 cups, 6,400 saucers and 3,950 plates. Required Using the above information calculate for period 7 (i) The productivity of the direct operatives (ii) An appropriate ratio expressin g the departments actual production relative to that budgeted (iii)An other(a) ratio which you consider may be useful to management and develop the meaning of the ratio you have calculated. Question 7 The Bashyam Co Ltd manufactures a variety of products of basically corresponding composition.Production is carried on by subjecting the various raw materials to a number of standardised operations, each study series of operations universe carried out in a contrasting department. All products are subject to the same initial actioning which is carried out in departments A, B and C the order and extent of further processing then looking upon the type of end product to be produced. It has been decided that a standard costing organization could be usefully employed within Bashyam and pilot schemed to be operated for six months based initially nevertheless on epartment B, the second department in the initial common same of operations. If the pilot scheme produces useful results then a management accountant will be employed and the system would be incorporated as appropriate throughout the whole firm. The standard cost per unit of output of department B is Rs. locate labour (14 hours at Rs. 2 per hour) cover material (i) (ii) Output of department A (3 kg at Rs. 9 per kg) Acquired by and now comment to department 4 Sreeram Coaching Point Rs. 28 27 L. Muralidharan, FCA. , Grad. CWA. , COST MANAGEMENT TEST QUESTIONS & SOLUTIONSB material X (4 kg at Rs. 5 per kg) Variable disk overhead (at Rs. 1 per direct labour hours worked) Fixed production overheads (i) Directly incurred by department B (note 1) manufacturing overhead (per unit) (ii) Allocated to department B general factory overhead (per unit) 3 8 11 14 20 47 neb 1. Based on normal monthly production of 400 units. In the number one month of operation of the pilot get down out (month 7 of the financial year), department B had no work in progress at the rootage and the end of the month. The actual cos ts allocated to department B in the first month of operation were Rs.Direct labour (6,500 hours) Direct materials (i) (ii) Output of department A (1,400 kg) (note 2) strong X (1,000 kg) Variable overhead Fixed overhead (i) (ii) Directly incurred manufacturing overhead Allocated to department B (note 3) 1,600 2,900 4,500 Rs. 59,000 Note 2. Actual cost of output of department A. Note 3. Based on the actual expenditure on joint manufacturing overheads and allocated to departments in accordance with labour hours worked The production manager feels that the actual costs of Rs. 59,000 for production of 500 units indicates considerable inefficiency on the part of department B. e says, I was right to request that the pilot standard costing system be carried out in department B as I have suspected that they are inefficient and careless this overspending of Rs. 9,000 proves I am right. Required Prepare a plan statement which clearly indicates the reasons for the performance of department B and the extent to which that performance is attributable to department B. the statement should utilize magnetic declination analysis to the extent it is relevant and relevant. Question 8 (i) Mathanakesari Ltd manufactures and sells a single product.In the draw off to 30 November 2002 sales of 10,000 units were budgeted at a unit marketing price of Rs. 5 and a unit contribution of Rs. 1 (after charging variable costs). The budget had been lively in the previous spring, and proved to be inaccurate. Actual sales for the November quarter were 7,000 units at a unit selling price of Rs. 8, giving a unit contribution of Rs. 3. You are required to calculate appropriate sales margin variances on the basis of this information. (ii) When reviewing the results for the quarter to 30 November the sales manager ascertained several additional facts.The total market for the product nationally had been only 45,000 units during the quarter, and not 50,000 units as Mathanakesari had originally anticipated. Mathanakesari had antecedently maintained a 20% share L. Muralidharan, FCA. , Grad. CWA. , 5 Sreeram Coaching Point Rs. 14,000 21,000 11,500 32,500 8,000 COST MANAGEMENT TEST QUESTIONS & SOLUTIONS of the market for many years, adopting a policy of duplicate the market price. An index of the selling price levels of competitors products had rise to 140, instead of be at the level of 100 as originally budgeted.Mathanakesaris variable costs (all materials) had risen in line with the change in the appropriate commodity price index, which had gone up from the expected level of 100 to an actual level of 125. You are required to calculate a set of variances to take appropriate notice of this additional information, and to discuss their significance. Question 9 From past experience a corporation operating a standard cost system has accumulated the following information in relation to variances in its monthly management accounts Percentage of total number of variances. 1) It s variances fall into two categories Category 1 those which are not worth investigating Category 2 those which are worth investigating 64 36 100 (2) Of category 2, corrective action has eliminated 70% of the variances, but the remainder have continued. (3) The cost of investigation averages Rs. 350 and that of correcting variances averages Rs. 550. (4) The average size of any variance not corrected is Rs. 525 per month and the companys policy is to assess the present value of such costs at 2% per month for a period of tailfin months.You are required to (a) Prepare two decision trees, to represent the position if an investigation is (i) Carried out (ii) Not carried out (b) Recommend, with supporting calculations, whether or not the company should follow a policy of investigating variances as a matter of routine (c) Explain briefly two types of circumstance that would give rise to variances in Category 1 and two to those in Category 2 (d) Mention any one variation in the information used that you feel would be beneficial too the company if you wished to improve the quality of the decision-making rule recommended in (b) above.Explain briefly why you have suggested it. Question 10 Vishwakarma is a builder. His business will have spare capacity over the coming six months and he has been investigating two projects. Project A Vishwakarma is tendering for a school extension tweet. normally he prices a contract by adding 100% to direct costs, to cover overheads and profit. He calculates direct costs as the actual cost of materials valued on a first-in-first-out basis, plus the estimated wages of direct labour. But for this contract he has prepared more detailed information. Four types of material will be needed Matl.Quantity (units) Needed Already for contract in stock 1,100 150 600 200 100 200 300 400 6 Price per unit (in Rs. ) secure Current Current price of Purchase resale units in stock price price 7. 00 40. 00 35. 00 20. 00 10. 00 44. 00 33. 00 21. 00 8. 00 38. 00 25. 00 10. 00 Sreeram Coaching Point Z Y X W L. Muralidharan, FCA. , Grad. CWA. , COST MANAGEMENT TEST QUESTIONS SOLUTIONS Z and Y are in regular use. Neither X nor W is currently used X has no predictable use in the business, but W could be used on other credit lines in place of material currently costing Rs. 6 per unit. The contract will last for six months and requires two craftsmen, whose basic annual wage cost is Rs. 16,000 each. To nab the contract in term it will also be necessary to pay them a bonus of Rs. 700 each. Without the contract they would be carry at their normal pay rate, doing work which will otherwise be make by temporary workers engaged for the contract period at a total cost of Rs. 11,800. Three causal labourers would also be employed specifically for the contract at a cost of Rs. 4,000 each.The contract will require two types of equipment general- purpose equipment already owned by Vishwakarma, which will be retained at the end of the contract, and specialized equipment to be purchased second-hand, which will be sold at the end of the contract. The general-purpose equipment cost Rs. 21,000 two years ago and is being depreciated on a straightline basis over a seven-year life (with assumed zero scrap value). Equivalent new-sprung(prenominal) equipment can be purchased currently for Rs. 49,000. Second-hand prices for comparable to(predicate) general-purpose equipment, and those for the relevant specialized equipment, are shown below.General purpose equipment Purchase Resale Price Price (Rs. ) (Rs. ) Current After 6 months If used for 6 months If not used 15,000 19,000 12,600 16,400 7,000 8,000 5,800 6,500 20,000 17,200 Specialized equipment Purchase Resale Pricep Price (Rs. ) (Rs. ) 9,000 7,400 The contract will require the use of a yard on which Vishwakarma has a four-year lease at a fixed rental of Rs. 2,000 per year. If Vishwakarma does not get the contract the yard will probably remain empty. The contract will also incur administrative expenses estimated at Rs. 5,000.Project B If Vishwakarma does not get the contract he will profane a building plot for Rs. 20,000 and build a house. Building costs will depend on weather conditions Weather condition Probability Building costs (excluding land) A 0. 4 Rs. 60,000 B 0. 4 Rs. 80,000 C 0. 2 Rs. 95,000 Similarly the price obtained for the house will depend on market conditions Market condition Probability Sale price (net of selling expenses) D 0. 7 Rs. 1,00,000 E 0. 3 Rs. 1,20,000 Vishwakarma does not have the resources to downstairstake both projects. The costs of his supervision quantify can be ignored.Requirements (a) Ignoring the possibility of undertaking project B, calculate (i) The price at which Vishwakarma would tender for the school extension contract if he used his normal pricing method, and (ii) The tender price at which you consider Vishwakarma would neither gain nor lose by taking the contract. (b) Explain, with supporting calculations, how the availability of project B should affect Vishwakarmas tender for the school extension contract. L. Muralidharan, FCA. , Grad. CWA. , 7 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS & SOLUTIONS Question 11 Narendran Products has two main products.X and Y, which have unit costs of Rs. 12 and Rs. 24 respectively. The company uses a markup of 33? % in doing its selling prices and the current prices are thus Rs. 16 and Rs. 32. With these prices, in the year which is just ending, the company expects to make a profit of Rs. 3,00,000 from having produced and sold 15,000 units of X and 30,000 units of Y. This programme will have used all the available processing time in the finishing department. Each unit of X requires an hour of processing time in this department and every unit of Y correspondingly requires half an hour.Fixed overhead was Rs. 3,60,000 for the year and this has been charged to the products on the basis of the total processing hours used. All other cots may be as sumed variable in relation to processing hours. In the current year it is estimated that Rs. 60,000 of the fixed overhead will be heedless by X and Rs. 3,00,000 by Y. With the existing selling prices it is considered that the potential annual demand for X is 20,000 units and that for Y, 40,000 units. You are required to comment critically on the product intermingle adopted by Narendran Products.Calculate what would have been the optimum plan given that there was no intention of changing the selling prices. (a) For the forthcoming year increased capacity has been installed in the finishing department so that this will no longer be a constraint for any feasible sales programme. yearbook fixed overhead will be increased to Rs. 4,00,000 as a consequences of this expansion of facilities, but variable costs per unit are unchanged. A study commissioned by the Sales Director estimates the effect that alterations to the selling prices would have on the sales that could be achieved.The fol lowing table has been prepared X Price Demand (000) Rs. 13. 50 30 Rs. 18. 50 10 Rs. 29. 00 60 Y Rs. 35. 00 20 It is thought reasonable to assume that the price/demand race is linear. Assuming that the company is now willing to abandon its cost plus pricing practices, if these can be shown to be deficient, you are required to calculate the optimal selling price for each product and the optimal output levels for these prices. State clearly any assumptions that you find it necessary to make.Question 12 variability A of a tremendous divisionalized makeup manufactures a single standardized product. Some of the output is sold externally whilst the remainder is channelisered to Division B where it is a subassembly in the manufacture of that divisions product. The unit costs of Division As product are as follows (Rs. ) Direct material Direct labour Direct expense Variable manufacturing overheads Fixed manufacturing overheads Selling and packing expense variable 4 2 2 2 4 1 17 Annuall y 10,000 units of the product are sold externally at the standard price of Rs. 0. In addition to the external sales, 5,000 units are transferred annually to Division B at an internal transfer charge of Rs. 29 per unit. This transfer price is obtained by deducting variable selling and packing expense from the external price since this expense is not incurred for internal transfers. Division B incorporate the transferred-in goods into a more advanced product. The unit costs of this product are as follows L. Muralidharan, FCA. , Grad. CWA. , 8 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS SOLUTIONS (Rs. convertred-in term (from Division A) Direct material and components Direct labour Variable overheads Fixed overheads Selling and packing expense variable 29 23 3 12 12 1 80 Division Bs manager disagrees with the basis used to set the transfer price. He argues that the transfers should be made at variable cost plus an concur (minimal) mark-up since he claims that his division is taking output that Division A would be unable to sell at the price of Rs. 30. Partly because of this disagreement, a study of the relationship between selling price and demand has recently been made for each division by the companys sales director.The resulting report contains the following table Customer demand at various selling prices Division A Selling price Demand Division B Selling price Demand Rs. 80 7,200 Rs. 90 5,000 100 2,800 Rs. 20 15,000 Rs. 30 10,000 Rs. 40 5,000 The manager of Division B claims that this study supports his case. He suggests that a transfer price of Rs. 12 would give Division A a reasonable contribution to its fixed overheads period allowing Division B to earn a reasonable profit. He also believes that it would lead to an increase of output and an improvement in the overall level of company profits.You are required (a) To calculated the effect that the transfer pricing system has had on the companys profits, and (b) To establish the likely effect o n profit of adopting the suggestion by the manager of Division B of a transfer price of Rs. 12. Question 13 Companies RP, RR, RS and RT are members of a conference. RP wishes to buy an electronic control system for its factory and, in accordance with root word policy, must obtain quotations from companies inside and exterior of the group. From outside of the group the following quotations are received companion A quoted Rs. 33,200. Company B quoted Rs. 5,000 but would buy a special unit from RS for Rs. 13,000. To make this unit, however, RS would need to buy part from RR at a price of Rs. 7,500. The inside quotation was from RS whose price was Rs. 48,000. This would require RS buying parts from RR at a price of Rs. 8,000 and units from RT at a price of Rs. 30,000. However, RT would need to buy parts from RR at a price of Rs. 11,000. special data are as follows (1) RR is extremely busy with work outside the group and has quoted current market prices for all its products. (2) RS costs for the RP contract, including purchases from RR and RT, total Rs. 2,000. For the Company B contract it expects a profit of 25% on the cost of its own work. 9 Sreeram Coaching Point L. Muralidharan, FCA. , Grad. CWA. , COST MANAGEMENT TEST QUESTIONS & SOLUTIONS (3) (4) RT prices provide for a 20% profit margin on total costs. The variable costs of the group companies in respect of the work under consideration are RR 20% of selling price. RS 70% of own cost (excluding purchases from other group companies) RT 65% of own cost (excluding purchases from other group companies) You are required, from a group point f view, to (a) Recommend, with appropriate calculations, whether the contract should be placed with RS or Company A or Company B (b) State briefly two assumptions you have made in arriving at your recommendations. Question 14 An industrial group of companies includes two divisions A and B. the output of Division A is product A, two units of which are used by Division B fo r every one of its product B. Division B has first call on Division As output but there is a separate market outside the group for the equipoise of Division As output. All the output of Division B is sold outside the group.The maximum capacity of Division A is 1,30,000 units of A and that of Division B is 50,000 units of B per annum. Each division maintains a stable level of stocks throughout the year. The group would like to examine the results of using different bases of transfer pricing under different scenarios (ie positions that could be expected to arise). The bases of transfer pricing are Absorbed standard cost Market price Variable cost plus a palooka sum of 80% of Division As fixed cost Scenario subprogram Product A Market price Total Demand (per unit) (thousand units) Rs. 5 23 29 30 25 35 100 70 130 Product A Rs. 20 Rs. 5 Product B Rs. 12 Rs. 18 (Exclusive of 2 units of Product A) 100 90 90 AS MP VC Product B Market price Total Demand (per unit) (thousand units) Rs. 40 30 30 Costs per unit are Variable cost Fixed cost Budgeted volume in units per annum Part 1 1,00,000 40,000 You are required to calculate the profits shown by Division A and by Division B for the following seven situations Scenario 15 23 29 MP MP Basis of imparting pricing VC VC VC AS AS L. Muralidharan, FCA. , Grad. CWA. , 10 Sreeram Coaching PointCOST MANAGEMENT TEST QUESTIONS SOLUTIONS Part 2 have on that Division B receives an overseas order for 20,000 units of B that will in no way influence its other clientele. (a) As manager of Division B state, with supporting calculations, whether you would recommend acceptance of the order in the following two situations Scenario (i) 23 (ii) 29 Price per unit (ex factory) Rs. 55 Rs. 65 Basic of transfer pricing AS MP (b) If you were Managing Director of the whole group state, with very brief reasons, whether you would recommend acceptance of the orders in (a) (i) and (a) (ii) above.Question 15 Vista Electronics manufactures two differe nt types of coils used in electric motors. In the move of the current year. Erica Becker, the controller, compiled the following data. Sales forecast for 2000 (all units to be shipped in 2000) Product Light coil Heavy coil Raw material prices and farm animal levels Raw Material Expected Inventories January 1, 2000 32,000 lb. 29,000 lb 6,000 units Desired Inventories December 31, 2000 36,000 lb. 32,000 lb. 7,000 units Anticipated Purchase Price in Rs. 8 5 3 Units 60,000 40,000 Price Rs. 65 Rs. 95Sheet metal Copper outfit Platform Use of raw material Raw Material Sheet metal Copper wire Platform Direct-labor requirements and rates Product Light coil Heavy coil Amount Used per Unit Light Coll Heavy Coll 4 lb 2 5 lb 3 1 unit Hours per Unit 2 3 Rate per Hour Rs. 15 20 Overhead is applied at the rate of Rs. 2 per direct-labor hour. Finished-goods inventories (in units) Product Expected January 1, 2000 20,000 8,000 Desired December 31, 2000 25,000 9,000 Light coil Heavy coil L. Muralidh aran, FCA. , Grad. CWA. , 11 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS SOLUTIONSManufacturing overhead Overhead Cost Item Purchasing and material handling Depreciation, utilities and inspection exercise-Based Budget Rate Rs. 25 per Rupee of sheet metal and cooper wire purchased. Rs. 4. 00 per coil produced (either type) Shipping Rs. 1. 00 per coil shipped (either type) Rs. 3. 00 per direct-labor hour General manufacturing overhead Required Prepare the following budgets for 2000. 1) Sales budget (in Rupees). 2) Production budget (in units). 3) Raw-material purchases budget (in quantities). 4) Raw-material purchases budget (in Rupees). ) Direct-labor budget (in Rupees). 6) Manufacturing overhead budget (in Rupees). Question 16 Toronto Business Associates, a division of Maple Leaf Services Corporation, offers management and computer consulting services to clients throughout Canada and the north United states. The division specializes in website development and other Int ernet applications. The corporate management at Maple Leaf Services is pleased with the performance of Toronto Business Associates for the first nine months of the current year and has recommended that the division manager.Ramachandran, submit a revised forecast for the remaining quarter, as the division has exceeded the annual plan year-to-date by 20 percent of operating income. An unexpected increase in billed hour volume over the original plan is the main reason for this increase in income. The original operating budget for the first three quarters for Toronto Business Associates follows. TORONTO BUSINESS ASSOCIATES 201 Operating Budget 1st Quarter second Quarter 3rd Quarter Total for first three QuartersRevenue Consulting fees Computer system consulting Management consulting Total consulting fees Other revenue Total revenue Expenses adviser salary expenses Travel and related expense General and administrative expenses Depreciation expense Corporate expense allocation Total expe nses Operating income 3,86,750 45,625 1,00,000 40,000 50,000 6,22,375 1,24,500 3,86,750 45,625 1,00,000 40,000 50,000 6,22,375 1,24,500 3,86,750 45,625 1,00,000 40,000 50,000 6,22,375 1,24,500 11,60,250 1,36,875 3,00,000 1,20,000 1,50,000 18,67,125 3,73,500 4,21,875 3,15,000 7,36,875 10,000 7,46,875 4,21,875 3,15,000 7,36,875 10,000 7,46,875 4,21,875 3,15,000 7,36,875 10,000 7,46,875 12,65,625 9,45,000 22,10,625 30,000 22,40,625 L. Muralidharan, FCA. , Grad. CWA. , 12 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS SOLUTIONS Howell will reflect the following information in his revised forecast for the fourth quarter. Toronto Business Associates currently has 25 consultants on staff, 10 for management consulting and 15 for computer systems consulting. Three additional management consultant have been hired to start work at the descent of the fourth quarter in order to meet the increased client demand. The hourly billing rate for consulting revenue will remain at 90 per hour for each management consultant and 75 per hour for each computer consultant. However, due to the favorable increase in billing hour volume when compared to the plan, the hours for each consultant will be increased by 50 hours per quarter. The budgeted annual salaries and actual annual salaries, paid monthly, are the same 50,000 for a management consultant and 46,000 for a computer consultant.Corporate management has approved a merit increase of 10 percent at the beginning of the fourth quarter for all 25 existing consultants, while the new consultants will be compensated at the planned rate. The planned salary expense includes a provision for employee smasher benefits amounting to 30 percent of the annual salaries. However, the improvement of some corporate wide employee programs will increase the fringe benefits to 40 percent. The original plan assumes a fixed hourly rate for travel and other related expenses for each billing hour of consulting. These are expense that are not r eimbursed by the client, and the previously inflexible hourly rate has proven to be adequate to cover these costs. Other revenue is derived from temporary rentals and interest income and remains unchanged for the fourth quarter. General and administrative expense have been favourable at 7 percent below the plan this 7 percent savings on fourth quarter expenses will be reflected in the revised plan. Depreciation of office equipment and personal computers will stay constant at the projected straight-line rate. Due to the favourable experience for the first three quarters and the divisions increased ability to absorb costs, the corporate management at Maple Leaf Services has increased the corporate expenses allocation by 50 percent. Required 1) Prepare a revised operating budget for the fourth quarter for Toronto Business Associates that Ramachandran will present to corporate management. 2) Discuss the reasons why an organization would prepare a revised operating budget. Question 1 7 Ford ltd. anufactures and sells 15,000 units of a raft, RF17, in 2001. The full cost per unit is Rs. 200. Ford earns a 20% return on an investment of Rs. 18,00,000 in 2001. Required (1) Calculate the selling price of RF17 in 2001. Calculate the markup percentage on the full cost per unit of RF17 in 2001. (2) If the selling price in requirement 1 represents a markup percentage of 40% on variable costs per unit, calculate the variable cost per unit of RF17 in 2001 (3) Calculate fords operating income if it had increased the selling price to Rs. 230. at this price ford would have sold 13,500 units of RF17. Assume no change in total fixed costs. Should ford have increased the selling price of RF17 to Rs. 230? 4) In response to competitive pressure, ford must reduce the price of RF17 to Rs. 210 in 2002, in order to achieve sales of 15,000 units. Ford plans to reduce its investment to Rs. 16,50,000. If ford wants to maintain a 20% return on investment, what is the target cost per unit i n 2002? L. Muralidharan, FCA. , Grad. CWA. , 13 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS SOLUTIONS Question 18 Amrutha, president of chum salmon Electronics (PE), is concerned about the prospects of one of its major products. The president has been reviewing a marketing report with Krishna, marketing product manager, for their 10-disk car compact disk (CD) changer.The report indicates another price reduction is needed to meet anticipated competitors reductions in sales prices. The current selling price for their 10-disk car CD changers is Rs. 350 per unit. It is expected that within three months PEs two major competitors will be selling their 10-disk car CD changers for Rs. 300 per unit. This concerns Amrutha because their current cost of producing the CD changers is Rs. 315, which yields a Rs. 35 profit on each unit sold. The situation is especially disturbing because PE had implemented an activity-based costing (ABC) system about two years ago. The ABC system helpe d them better identify costs, cost pools, cost drivers, and cost reduction opportunities.Changes made when adopting ABC reduced costs on this product by approximately 15 percent during the last two years. direct it appears that costs will need to be reduced considerably more to remain competitive and to earn a profit on the 10-disk car CD changers. Total costs to produce, sell, and service the CD changer units are as follows 10-Disk Car CD Changer Per Unit Material Purchased components All other material Labor Manufacturing, direct entrapups Materials handling Inspection Machining Cutting, shaping, and drilling Bending and finishing Other Finished-goods warehousing Warranty Total unit cost Rs. 110 40 65 9 18 23 21 14 5 10 Rs. 315 Amrutha has decided to hire Damodar, a consultant, to help decide how to proceed.After two weeks of review, tidings, and value engineering analysis, Chandran suggested that PE adopt a just-intime (JIT) cell manufacturing process to help reduce costs. He also suggested that using target costing would help in shock the new target price. By changing to a JIT cell manufacturing system, PE expects that manufacturing direct labor will increase by Rs. 15 per blameless unit. However, setup, material handling, inspection, and finished goods warehousing will all be eliminated. Machine costs will be reduced from Rs. 35 to Rs. 30 per unit, and warranty costs are expected to be reduced by 40 percent. Required (1) Determine PAL Electronics unit target cost the Rs. 300 competitive sales price while maintaining the same percentage of profit on sales as is earned on the current Rs. 350 sales price. 2) If the just-in-time cell manufacturing process is implemented with the changes noted, will PAL Electronics meet the unit target cost you determined in requirement (3)? Prepare a schedule detailing cost reductions and the unit cost under the proposed JIT cell manufacturing process. Question 19 The management of shackle Enterprises recently decided t o adopt a just-in-time archive policy to curb steadily rising costs and free up cash for purposes of investment. The company anticipates that inventory will decrease from Rs. 36,00,000 to Rs. 6,00,000, with the released funds to be invested at a 12 percent return for the firm. Additional data follow L. Muralidharan, FCA. Grad. CWA. , 14 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS & SOLUTIONS Reduced inventories should produce savings in insurance and property taxes of Rs. 27,000. Alliance will lease 75 % of an existing warehouse to another firm for Rs. 2 per square foot. The warehouse has 30,000 square feet. Because of the need to handle an increased number of small shipments from suppliers, Alliance will remodel production and receiving-dock facilities at a cost of Rs. 6,00,000. The construction costs will be depreciated over a 10-year life. A shift in suppliers is expected to result in the purchase and use of more expensive raw materials.However, these materials sh ould give rise to fewer warranty and heal problems after Alliances finished product is sold, resulting in a net savings for the firm of Rs. 25,000. Three employees who currently earn Rs. 30,000 each will be directly affected by the just-in-time adoption decision. Two employees will be transferred to other positions with Alliance one will be terminated. Reduced raw material inventory levels and accompanying stockouts will cost Alliance Rs. 70,000. Required (1) Compute the annual financial conflict of Alliances decision to adopt a just-in-time inventory system. (2) If the just-in-time system is implemented in proper fashion, what is the likelihood of freeive raw material stockouts?Briefly explain. (3) Adoption of a just-in-time purchasing system will often result in less need for the inspection of launching materials and parts. Why? (4) In comparison with a traditional purchasing system, why does a just-in-time system give rise to an increased number of small shipments to the bu ying firm? Question 20 The product structure and the lead times for a finished product X are given in figure below If 100 units of X are required in week 12 and if none of the components, sub-assemblies and the end product are either on hand or on order, compute the amounts and dates of the planned order releases for all the components and sub-assemblies.Assume that there is no particular order size and so all the order quantities are lot for lot. X, LT = 2 P (1), LT = 3 Q (2), LT = 1 R (3), LT = 3 S (2), LT = 3 P (2), LT = 3 R (3), LT = 3 Question 21 S (2), LT = 3 The lead time to procure Paracetamol from a supplier is four weeks. At present, 54 kg of the medicine is available with us. There is also a scheduled receipt of 45 kg of it in four weeks. The production requirements of paracetamol over the next nine weeks are as Week Amount in kg 1 24 2 3 29 4 11 15 5 6 5 7 19 8 27 9 18 L. Muralidharan, FCA. , Grad. CWA. , Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS & SOLUTI ONS If we use an order quantity of 45 kg, when shall we release the orders for Paracetamol?Question 22 Having attended a CIMA course on activity-based costing (ABC) you decide to experiment by applying the principles of ABC to the four products currently made and sold by your company. Details of the four products and relevant information are given below for one period Product Output in units Costs per unit Direct material Direct labour Machine hours (per unit) A 120 (Rs. ) 40 28 4 B 100 (Rs. ) 50 21 3 C 80 (Rs. ) 30 14 2 D 120 (Rs. ) 60 21 3 The four products are similar and are usually produced in production runs of 20 units and sold in batches of 10 units. The production overhead is currently absorbed by using a machine hour rate, and the total of the production overhead for the period has been analysed as follows (Rs. Machine department costs (rent, business rates, depreciation and supervision) Set-up costs Stores receiving Inspection / case control Materials handling and despat ch 10,430 5,250 3,600 2,100 4,620 You have ascertained that the cost drivers to be used are as listed below for the overhead cost shown Cost Set up costs Stores receiving Inspection / Quality control Materials handling and despatch Cost Driver Number of production runs Requisition raised Number of production runs Orders executed The number of requisition raised on the stores was 20 for each product and the number of orders executed was 42, each orders being for a batch of 10 of a product. You are required. a) To calculate the total costs for each product if all overhead costs are absorbed on a machine hour basis (b) To calculate the total costs for each product, using activity-based costing (c) To calculate and list the unit product cost from your figures in (a) and (b) above, to show the differences and to comment briefly on any conclusions which may be drawn which could have pricing and profit implications. Question 23 Sumantra Technology Ltd. ,. manufactures several different typ es of printed circuit come ons however, two of the boards account for the majority of the companys sales. The first of these boards, a television circuit board, has been a standard in the industry for several years. The market for this type of board is competitive and price-sensitive. Sumantra plans to sell 65,000 of the TV boards in 2001 at a price of Rs. 50 per unit. The second high-volume product, a personal computer circuit board, is a recent addition to Sumantras product line. Because the PC board incorporates the latest technology it can be sold at a premium price. The 2001 plans include the sale of 40,000 PC boards at Rs. 300 per unit. L. Muralidharan, FCA. , Grad. CWA. , 16 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS & SOLUTIONS Sumantras management group is meeting to discuss how to spend the sales and promotion Rupees for 2001. The sales manager believes that the market share for the TV board could be expanded by concentrating Sumantras promotional efforts in t his area.In response to this suggestion, the production manager said, Why dont you go after a bigger market for the PC board? The cost sheets that I get show that the contribution from the PC board is more than double the contribution from the TV board. I know we get a premium price for the PC board. Selling it should help overall profitability. The cost-accounting system shows that the following costs apply to the PC and TV boards. PC Board Direct material Direct labour Machine time Rs. 140 4 hr. 1. 5 hr. TV Board Rs. 80 1. 5 hr. .5 hr. Variable manufacturing overhead is applied on the basis of direct-labor hours. For 2001, variable overhead is budgeted at Rs. 1,20,000, and direct-labor hours are estimated at 2,80,000. The hourly rates for machine time and direct labor are Rs. 10 and Rs. 14, respectively. The company applies a material-handling charge at 10 percent of material cost. This material-handling charge is not included in variable manufacturing overhead. Total 2001 expend itures for direct material are budgeted at Rs. 1,06,00,000. Andrew Fulton, Sumantras controller, believes that before the management group proceeds with the discussion about allocating sales and promotional Rupees to individual products, it might be worth while to look at these products on the basis of the activities involved in their production.Fulton has prepared the following schedule to help the management group understand this concept. Using this information, Fulton explained, we can calculate an activity-based cost for each TV board and each PC board and then compare it to the standard cost we have been using. The only cost that remains the same for both cost methods is the cost of direct material. The cost drivers will replace the direct labor, machine time, and overhead costs in the old standard cost figures. Budgeted Cost Procurement Production scheduling package and shipping Total Machine setup Hazardous waste disposal Quality control General supplies Total Machine inser tion Manual insertion Wave-soldering Total In Rs. ,00,000 2,20,000 4,40,000 10,60,000 4,46,000 48,000 5,60,000 66,000 11,20,000 12,00,000 40,00,000 1,32,000 53,32,000 Required per Unit Parts Machine insertions Manual insertions Machine setups Hazardous waste disposal Inspections L. Muralidharan, FCA. , Grad. CWA. , 17 Cost Driver Number of parts Number of boards Number of boards Number of setups Rupees of waste Number of inspections Number of boards Number of insertions Numbers of insertions Number of boards Budgeted Annual Activity for Cost Driver 40,00,000 parts 1,10,000 boards 1,10,000 boards 2,78,750 setups 16,000 Rupees 1,60,000 inspections 1,10,000 boards 30,00,000 insertions 10,00,000 insertions 1,10,000 boards PC Board 55 35 20 3 . 35 lb. 2 TV Board 25 24 1 2 . 02 lb. 1 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS & SOLUTIONSRequired (1) Identify at least four general advantages associated with activity-based costing. (2) On the basis of Sumantras unit cost data gi ven in the problem, calculate the total contribution margin expected in 2001 for the PC board and the TV board. (3) On the basis of an activity-based costing system, calculate the total contribution margin expected in 2001 for the PC board and the TV board. (4) Explain how a comparison of the results of the two costing methods may impact the decisions made by Sumantras management group. Question 24 Calton Ltd. make and sell a single product. The existing product unit specifications are as follows Direct material X Machine time Machine cost per gross hour Selling price 8 sq. etres at Rs. 4 per sq. metre 0. 6 running hours Rs. 40 Rs. 100 Calton Ltd. , require to fulfil orders for 5,000 product units per period. There are no stocks of product units at the beginning or end of the period under review. The stock level of material X remains unchanged throughout the period. The following additional information affects the costs and revenues (1) (2) (3) (4) (5) 5% of incoming material from s uppliers is scrapped due to poor receipt and computer memory organisation. 4% of material X input to the machine process is wasted due to processing problems. Inspection and storage of material X costs Rs. 0. 10 pence per sq. metre purchased.Inspection during the production cycle, calibration checks on inspection equipment, vendor rating and other checks costs Rs. 25,000 per period Production quantity is increased to allow for the downgrading of 12. 5% of product units at the final inspection stage. Downgraded units are sold as second quality units at a entailment of 30% on the standard selling price. Production quantity is increased to allow for returns from customers which are replaced free of charge. Returns are due to specification failure and account for 5% of units initially delivered to customers. Replacement units incur a delivery cost of Rs. 8 per unit. 80% of the returns from customers are rectified using 0. hours of machine running time per unit and are re-sold as third quality products at a discount of 50% on the standard selling price. The remaining returned units are sold as scrap for Rs. 5 per unit. Product liability and other claims by customers is estimated at 3% of sales revenue from standard product sales. Machine idle time is 20% of gross machine hours used (i. e. running hours = 80% of gross hours). Sundry costs of administration, selling and distribution total Rs. 60,000 per period. Calton Ltd is aware of the problem of excess costs and currently spends Rs. 20,000 per period in efforts to prevent a number of such problems from occurring. (6) 7) (8) (9) (10) Calton Ltd. is planning a quality management programme which will increase its excess cost prevention expenditure from Rs. 20,000 to Rs. 60,000 per period. It is estimated that this will have the following impact. (1) A reduction in stores exites of material X to 3% of incoming material. (2) A reduction in the downgrading of product units at inspection to 7. 5% of units inspected. ( 3) A reduction in material X losses in process to 2. 5% of input to the machine process. L. Muralidharan, FCA. , Grad. CWA. , 18 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS & SOLUTIONS (4) A reduction in returns of products from customers to 2. % of units delivered. (5) A reduction in machine idle time to 12. 5% of gross hours used. (6) A reduction in product liability and other claims to 1% of sales revenue from standard product sales. (7) A reduction in inspection, calibration, vendor rating and other checks by 40% of the existing figure. (8) A reduction in sundry administration, selling and distribution costs by 10% of the existing figure. (9) A reduction in machine running time required per product unit to 0. 5 hours. Required (a) Prepare summaries showing the calculation of (I) total production units (pre-inspection), (ii) purchases of material X (sq. metres), (iii) gross machine hours.In each case the figures are required for the situation both before and after the implementation of the additional quality management programme, in order that the orders for 5,000 product units may be fulfilled. (b) Prepare profit and loss account for Calton Ltd for the period showing the profit earned both before and after the implementation of the additional quality management programme. (c) Comment on the relevancy of a quality management programme and explain the meaning of the terms internal failure costs, external failure costs, appraisal costs and preventation costs giving examples for each, taken where possible from the information in the question. Question 25 Destiny Products makes digital suck ines. Destiny is preparing a product life-cycle budget for a new watch, MX3. reading on the new watch is to start shortly.Estimates about MX3 are as follows Life-cycle units manufactured and sold Selling price per watch Life-cycle costs R & D and design costs Manufacturing Variable costs per watch Variable costs per batch Watches per batch Fixed costs Marketing Variable costs per watch Fixed costs Distribution Variable costs per batch Watches per batch Fixed costs Customer-service costs per watch Ignore the time value of money. Required (1) Calculate the budgeted life-cycle operating income for the new watch. (2) What percentage of the budgeted total product life-cycle costs will be incurred by the end of the R & D and design stages? Rs. 280 160 Rs. 7,20,000 Rs. 1. 50 Rs. 3. 20 Rs. 10,00,000 Rs. 15 Rs. 600 500 Rs. 18,00,000 Rs. 10,00,000 4,00,000 Rs. 40 L. Muralidharan, FCA. , Grad. CWA. , 19 Sreeram Coaching PointCOST MANAGEMENT TEST QUESTIONS & SOLUTIONS (3) An analysis reveals that 80% of the budgeted total product life-cycle costs of the new watch will be locked in at the end of the R & D and design stages. What implications does this finding have for managing MX3s costs? (4) Destinys Market Research subdivision estimates that reducing MX3s price by Rs. 3 will increase life-cycle unit sales by 10 percent. If unit sales increase by 10 %, Destiny plans to increase manufacturing and distribution batch sizes by 10% as well. Assume that all variable costs per watch, variable costs per batch, and fixed costs will remain the same. Should Destiny reduce MX3s price by Rs. 3?Show your calculations. Question 26 A first batch of 25 electronic transistor radios took a total of 250 direct labour hours. It is proposed to assemble another 40 units. What will be the average labour per unit in this lot? Assume that there is 85% learning rate. Question 27 Bhakatavatsala & Co, a fire arms manufacturer, has designed a new type of gun and a first lot of 25 guns assembled for test purposes had the following costs Direct materials Direct labour Variable overheads Fixed overheads Total costs 24,500 22,500 16,875 11,250 75,125 Proportional to direct labour BSF being satisfied with this gun have asked the lowest bid for supply of 1,000 guns.The company will pass on the benefits of learning of 85% to the client in setting the bid. The comp any will set a selling price to earn 40% gross profit margin. Determine the unit price that should be bid. Question 28 One unit of product A contributes Rs. 7 and requires 3 units of raw material and 2 hours of labour. One unit of product B contributes Rs. 5 and requires one unit of raw material and one hour of labour. Availability of the raw material at present is 48 units and there are 40 hours of labour. (a) Formulate it as a linear programming problem. (b) Write its dual. (c) Solve the dual with Simplex method and find the optimal product mix and shadow prices of the raw material and labour.Question 29 The simplex tableau for a maximization problem of linear programming is given here Product unite Cj 5 0 xj x2 S2 cj zj cj zj Xl 1 1 4 5 -1 x2 1 0 5 5 0 S1 1 -1 0 5 -5 S2 0 1 0 0 0 Quantity (bi) 10 3 Answer the following questions, giving reasons in brief (a) Is this resolving optimal? (b) Are there more than one optimal origin? (c) Is this solution degenerate? L. Muralidharan, FCA. , Grad. CWA. , 20 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS & SOLUTIONS (d) Is this solution feasible? (e) If S1 is slack in machine A (in hours / week and S2 is slack in machine B (in hours / week), which of these machines is being used to the full capacity when producing check to this solution? f) A customer would like to have one unit of product x1 and is willing to pay in excess of the normal price in order to get it. How much should the price be increased in order to ensure no reduction of profits? Question 30 Management of Ranga Ltd are very much worried about the continuing recession in the country. The company has 7 divisions (A to G). they have decided to close four divisions to wit A,B,C and D and transfer some of the employees to the remaining divisions. Personnel at the units to be closed have signified a willingness to move to any of the three remaining units and the company is willing to provide them with removal costs.The technology of production is different to some degree at each unit and retraining expenses will be incurred on transfer. Not all existing personnel can be absorbed by transfer and a number of redundancies will arise. Cost of circumlocution is given as a general figure at each unit is to be closed. Number employed A-200 B-400 C-300 D-200 Rs. thousands per person Retraining costs Transfer to Unit E Unit F Unit G Removal costs Transfer to Unit E Unit F Unit G Redundancy payments 2. 5 2. 4 2. 5 6. 0 3. 6 4. 6 2. 7 5. 0 3. 4 3. 4 3. 3 6. 0 3. 7 1. 7 2. 7 7. 0 0. 5 0. 6 0. 5 0. 4 0. 4 0. 3 0. 6 0. 6 0. 7 1. 3 0. 3 0. 3 A B C D Additional personnel required at units remaining open E-350 F-450 G-200.To use the transportation method to obtain an optimal solution to the problem of the cheapest means to transfer personnel from the units to be closed to those which will be expanded. Question 31 A management consulting firm has a reservation of 4 contracts. Work on these contracts must be started immediately. 3 proje ct leaders are available for assignment to the contracts. Because of the varying work experience of the leaders, the profit to consulting firm will vary based on the assignment as shown below. The unassigned contract can be completed by subcontracting the work to an outside consultant. The profit on the subcontract is zero. Finds the optimal assignment.Contract Project Leader A B C L. Muralidharan, FCA. , Grad. CWA. , 1 13 15 6 21 2 10 17 8 3 9 13 11 4 11 20 7 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS & SOLUTIONS Question 32 The tit-fit Scientific Laboratories is engaged in producing different types of High-class equipments for use in Science labs. The company has two different assembly lines to produce its popular product P. Processing time (minutes) Assembly A1 Assembly A2 10 0. 10 0. 20 11 0. 15 0. 40 12 0. 40 0. 20 13 0. 25 0. 15 14 0. 10 0. 05 Use the following Random(Rn. ) nos, generate data on the process times for 15units of the full point and complete the expe cted process time for the product. 134 7476 4943 Question 33 A project consists of 7 activities. The time for performance of each of the activity is as followsActivity A Immediate Time 3 4 5 B 4 4 4 4 4 C A 1 1 1 D B,C 4 5 E D 3 4 5 6 F D 5 7 G E,F 2 3 Probability 0. 2 0. 6 0. 2 0. 1 0. 3 0. 3 0. 2 0. 1 0. 15 0. 75 0. 10 0. 8 0. 2 0. 1 0. 3 0. 3 0. 3 0. 20 0. 80 0. 5 0. 5 8343 1183 1915 3602 9445 5415 7505 0089 0880 7428 3424 9309 L. Muralidharan, FCA. , Grad. CWA. , 22 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS & SOLUTIONS a) Draw a network and identify critical path using expected time. b) Simulate the project for 5 times using Rn. nos and find critical paths? 8 99 57 57 77 Question 34 A small maintenance project consist of jobs in the table below. With each job is listed its normal time and a minimum or crash time in days. The cost in Rs. Per day of each job is also given Job(i-j) 1-2 1-3 1-4 2-4 3-4 4-5 Normal days 9 8 15 5 10 2 Crash days 6 5 10 3 6 1 Cost/Day 40 50 60 20 30 80 13 93 33 12 37 09 18 49 31 34 20 24 65 96 11 73 22 92 85 27 07 07 98 92 10 72 29 00 91 59 a) What is the normal project length and minimum project length? b) Determine the minimum crashing cost of schedules ranging from normal length down to, and including, the minimum length schedule. c) Overhead costs total Rs. 115/day. What is the optimum length schedule in terms of both crashing and overhead cost?Question 35 Allocate the men efficiently to the jobs given below and Find out the time required to complete the project. No. of persons 4 Job (I-j) 1-2 1-3 1-5 2-3 2-6 3-4 4-7 5-6 6-7 tn 10 6 5 0 8 10 10 7 5 Men 1 2 3 0 1 2 3 1 2 L. Muralidharan, FCA. , Grad. CWA. , 23 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS & SOLUTIONS Suggested Solutions L. Muralidharan, FCA. , Grad. CWA. , 24 Sreeram Coaching Point COST MANAGEMENT TEST QUESTIONS & SOLUTIONS Answer to Question No. 1 Elimination of decorative stitching cost. Cost Loss of contribution due to fall in sales (W N-1) 1,35,000 Net benefit = 27,000/(a) Substituting glass eyes by plastic eyes.

A Place at the Table Movie Review

Im glad that I was able to go conform to the screening last week because the movie truly emphasized on the alarming situation in our country. I usually dont resembling watching films that are relative to what happening to our nation but this movie really showed an impact to me. Its a national disgrace than nearly 50 meg of our American neighbors live in homes that cant afford enough food. This compelling film explains why we have this problem, and, most importantly, what we can do to end it.I think everyone in America should see this film because it emphasizes how big the problem is. The movie powerfully displayed the real lives of actual people whom were struggling against hunger. And every single one of these individuals defied a common stereotypes of hungry people. I believe that many Americans believe that we can end U.S. hunger one person at a time, one donated biodegradable good at a time. They are all acting as a good Samaritan but they are wrong, as this film proves.When Ronald Reagan entered office in 1981, there were only a few hundred emergency feeding programs in America, most of which were traditional soup kitchens serving mostly the people who had been historically the most hungry, the single men with substance abuse or mental illness problems. Yet, as a direct result of the economic policies and social run cuts set in motion by Reagan, the number of emergency feeding programs in America skyrocketed, and continued to do so even after he left office.There are now more than 40,000 such programs in America, and roughly two-thirds of them are food pantries, where parents and their children, the elderly, and working people obtain free groceries. Meanwhile, hunger has soared. The legality is that these agencies simply dont have anything close to the resources needed to meet the demand. This vital film proves that the only way to truly end U.S. hunger is by advocating for fundamental swap that include living wage jobs and a robust government safet y net.