SQAHND财政预算34

DE3J35Outcome3&4-1-Contents1.0Introduction.........................................................................................................-2-2.0Theflexedbudget...............................................................................................-2-3.0CalculatetheMaterialsvariances,LabourvariancesandtheTotaloverhead....-2-3.1Directthematerialsvariances,labourvariancesandthetotaloverhead...-2-3.2Varianceanalysis.........................................................................................-3-4.0Therecommendationsformanagement(variances)...........................................-4-5.0Usingfourdifferentmethodstoevaluatethefinancial.......................................-5-5.1Identifytheaccountingrateofreturn...........................................................-5-5.2Identifythepayback.....................................................................................-5-5.3IdentifytheNetpresentvalue......................................................................-5-5.4IdentifytheInternalrateofreturn................................................................-6-6.0Recommendationsforinvestmentdecision........................................................-6-7.0Conclusion..........................................................................................................-6-8.0Appendices..........................................................................................................-7-DE3J35Outcome3&4-2-1.0IntroductionThisreportwilldividedintotwoparts.PartAandPartB.InPartA,Firstofall,Iwillprepareaflexedbudgetinlinewithactualactivity.Second,thiswillincludingtheMaterialsvariances,Labourvariancesandtotaloverhead.Atthesametime,Iwillidentifyaminimumofonepossiblecauseoftheeachvariance.Finally,accordingtodataanalysis,therehavebeensomerecommendationstomanagementofMatteckPLC.InPartB,ItwillhavefourdifferentwaystoevaluatefinancialperformanceandgiverecommendationsforMatteckPLC.ThesewaysareARR,Payback,NPVandIRR.PartA2.0TheflexedbudgetForFlexbudgedofMatteckPLC,wecanseetheAppendix1.3.0CalculatetheMaterialsvariances,LabourvariancesandtheTotaloverhead.3.1Directthematerialsvariances,labourvariancesandthetotaloverhead.ThissectionshowstheAppendix2.DE3J35Outcome3&4-3-3.2Varianceanalysis.Materialpricevariance:Thematerialpricevarianceis₤32,000(F).Accordingtothedataanalysis,itis₤2/kglessexpensivethanplanned.Thepossiblereasonscanbedividedintothreepoints:first,theycouldreplacerawmaterials,usingalower-gradematerial.Second,thesuppliertoprovidesomediscountforthisbatchofrawmaterials.Finally,learnfromthecase,thecompanyhasmanagedtolocatenewmaterialsfromanoverseas.Duetotheproductfromoverseas,accordingtodifferentexchangerate,thematerialwillreducetheprice.Materialusagevariance:Thematerialusagevarianceis₤30,000(A).Thepossiblereasonsincludetheeffectsofrawmaterialsandtheinfluenceofthemachine.Ifthecompanyusingpoorqualityrawmaterials,itmaybemoredifficulttowork.Thiswillincreasethewastematerials.Atthesametime,thecaseshowsthatthecompany'snewmachinerycanbefullyusedinthesecondweek.Thedelaytimemayhavecausedthemachinetousemorematerialsthanplanned.Materialtotalvariance:Thematerialtotalvarianceis2,000(F).Caseshowsthatthecompany'srawmaterialsarefromoverseassuppliers.Thiswillreducesomecosts.Whichleadstothematerialpricevarianceis32,000(F).Ontheotherhand,thecompanyhasintroducedanewmachine,theinfluenceofmachineinstalledtime,causedsomewastedofmaterials.Thismakesthematerialusagevarianceis₤30000(A).EvenifThecompany’smaterialtotalvarianceis2000(F).Thecompany'smanagementstillshouldpayattentiontoTheutilizationofrawmaterials.Labourefficiencyvariance:TheLabourefficiencyvarianceis10,000(F).Thepossiblereasonscouldincludethenewmachinetoimprovestaffworkefficiency.Usingnewmachinecanlesslabourhours.Atthesametime,thecaseshowsthatthecompanyhashadtoemploymorehighlyqualifiedstaff.TheycanincreasetheDE3J35Outcome3&4-4-workingefficientlythroughthehigherskill.LabourRateVariance:TheLabourratevarianceis15,000(A).Throughthecalculation,thelabourrateis₤1.50perhourhigherthanoriginal.Thepossiblereasonsis₤1.50perhourhigherthanplanned.Thecostofdirectlabourisadversenessforthisfirm.LabourTotalVariance:theLabourtotalvarianceis5,000(A).Thereasonsofvariance,thecompanyhasintroducedthenewmachine,Astheresultthedirectlaborefficiencyvarianceisfavorablewhichis10,000(F).Onotherhand,thelabourrateishigherthanstandardlabourrate.Finally,leadtothelabourtotalvarianceisadverse,4.0Therecommendationsformanagement(variances).1.Thecompanyshouldbehadavarietyofdatainvestigationtosetupcompletedatasystem.Atthesametime,throughthedifferentvariance,thecompanycanknowmoreaboutthemarketinformation.2.Thecompanyshouldintensifytheperformancemonitorforstaffbecausethelowerperformancewillacceleratewasteofmaterialandthenleadtothematerialusageisincrease,theperformancemonitorcanhelpthecompanyshrinkthevariance.3.Management:thecompanycanprovidesomemotivationpoliciestomotivatethestaffthatisworkhardandenhancetheworkenthusiasticofthestaff.Thiscanimprovethestaffworkefficiency.DE3J35Outcom