题目

What are the possible advantages for the control function of an organisation of having a standard costing system? 

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Chapter10Budgetingandstandardcosting

(a) Carefully planned standards are an aid to more accurate budgeting. 

(b) Standard costs provide a yardstick against which actual costs can be measured. 

(c) The setting of standards involves determining the best materials and methods which may lead to economies. 

(d) A target of efficiency is set for employees to reach and cost consciousness is stimulated.

(e) Variances can be calculated which enable the principle of 'management by exception' to be operated. Only the variances which exceed acceptable tolerance limits need to be investigated by management with a view to control action. 

(f) Standard costs and variance analysis can motivate managers to achieve better performance. However, care must be taken to distinguish between controllable and non-controllable costs in variance reporting. 

多做几道

Fill in the blanks. 

 Ideally, a transfer price should be set that enables the individual divisions to maximise their profits at a level of output that maximises ……………………. . 

 The transfer price which achieves this is unlikely to be a ……………….. transfer price or a ……………. transfer price.  

 If optimum decisions are to be taken, transfer prices should reflect …………………. . 

There are two profit centres, A and B. Profit centre A transfers a product to profit centre B, but could also sell the product in an external market at a price of $30. The marginal cost of making the product in profit centre A is $8 per unit and the full cost is $14 per unit. There would be a variable cost of $1 per unit for sales and distribution to customers in the external market, but no such costs for internal transfers. 

To avoid disputes between the profit centre managers, what should be the transfer price for the product? 

$ _______

What objectives might the following not for profit organisations have? 

(a) An army                                                (d) A political party 

(b) A local council                                     (e) A college 

(c) A charity 

One of the objectives of a local government body could be 'to provide adequate street lighting throughout the area'. 

(a) How could the 'adequacy' of street lighting be measured? 

(b) Assume that other objectives are to improve road safety in the area and to reduce crime. How much does 'adequate' street lighting contribute to each of these aims? 

(c) What is an excessive amount of money to pay for adequately lit streets, improved road safety and reduced crime? How much is too little? 

What general objectives of non profit seeking organisations are being described in each of the following? 

(a) Maximising what is offered 

(b) Satisfying the wants of staff and volunteers 

(c) Equivalent to profit maximisation 

(d) Matching capacity available 

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