Posted: September 13th, 2017

Accounting for Business Decisions

Paper, Order, or Assignment Requirements

below are  the questions and some notes form the lecturer to help you in answering the assignment you need to read all of them then read the main assignment file for full details i have up loaded some examples from the class notes as well regarding the references must be Harvard style
lecturer Notes :
Q1. He said we need two statement the first one for all departments and the second one takeout the restaurant department and then compare between them.

Marginal costing statement(contribution) = Sales – Variable cost

Sales
Less
Variable cost
Equal
Contribution
Less
Fixed cost
Equal
Profit

The Variable cost in this case study
1- Non management wages
2- Department expenses
3- Sales promotion costs
4- For (Purchases for resale) we have to find the cost of sales which is
Opening stock + purchases – ending stock

Fixed cost = 412,000

Q2. Example of financial consequences of closing the restaurant the profit and may be there is more -the lecturer gave us example in the class when the company close one department the profit reduce because the contribution reduce because of the fixed cost and

For Non financial consequences loss some jobs , bad image and and the restaurant could be attract the people for the place and may be there is more

Q3.
1- stock control system . you can use inventory turnover ratio to identify that
Inventory Turnover =( Average stock (opening + closing / 2) / cost of sales) *365 = how many days
Inventory Turnover =(cost of sales / Inventory) how many times
2- need good planning system
3- you may need high level of stock because it may be encourages costumer to come
4- budget problem
5- monitor the profitability for product
6- produce profit of department by variance
7- costing system – costing list
8- internal control some security access door because of theft
9- for additional capital you can say we need some evaluation for this proposal by net present value and payback without any calculation

Q4.

1- Looking to variance
2- involve people from the beginning to be responsible
3- monitoring the department – behavior problem

these are some points which was given by the tutor therefore we need to answer all the questions in details for full information check the up loaded files