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FIN704 GDB 1 Solution and discussion

FIN704 - Managerial Accounting

zaasmi Cyberian's Gold

Re: FIN704 GDB 1 Solution and discussion

Total Marks 5
Starting Date Tuesday, June 02, 2020
Closing Date Friday, June 05, 2020
Status Open
Question Title Types of Budget
Question Description

GDB (FIN704)

Managerial Accounting

Topic for Discussion: “Types of Budget”

Learning Objectives:

To assess the knowledge related to the budget and its different types
To understand the importance of budgeting process for effective planning and control
To know the significance of budgeting as per nature of the business and its industry
To assess the importance of budget in decision making

Scenario:

Xee & Co. is one of the manufacturing concerns in local electronics market. Recently, it has launched screens for smartphones, car navigators and other consumer electronics. The company belongs to an industry which is notable for its fierce competition, short product life cycle, price pressure from online stores and the need for continuous innovation. Currently, the company is using the incremental annual budgeting technique for planning and controlling which sets the targets for both sales and production departments. The manager accounts of the company recently attended the conference “Budgeting Requirements of High-Tech Industry” and realized that the incremental annual budgeting technique used by Xee & Co. is not suitable for such a dynamic industry in which company works. He urged that the budgeting technique needs to be adjusted quarterly or even monthly for better planning and controlling to form realistic targets with prediction of market changes.

Required:

What type of budgeting technique would you recommend to Xee & Co which will support the argument of manager accounts concluded by him after attending the conference?

Important Instructions:

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SOLVED FIN704 Assignment 1 Solution and Discussion
FIN704 - Managerial Accounting • fin704 assignment 1 solution discussion fall 2019 • • zareen

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Solution:
Answer No.1
Required Formula
BEPUnits = FC / (S.PPer Unit – VCPer Unit) Or Where
BEPUnits = Break Even Point in Units
FC = Fixed Cost
S.PPer Unit = Selling Price Per Unit
VCPer Unit = Variable Cost Per Unit
CMPer Unit = Contribution Margin Per Unit By putting values
BEPUnits = 54,000,000 / (36,000 – 29,200) BEPUnits = 54,000,000 / 6800
BEPUnits = 7941.18 or 7941 Units
Total Marks: 20
Semester Fall 2019 Managerial Accounting (FIN704) Assignment Solution

FC / CMPer Unit
BEPSales = BEPUnits * S.PPer Unit
Alternatively
BEPSales = FC / Contribution Margin to Sales Ratio
BEPSales = 7941 * 36,000 = Rs. 285,876,000 or Rs.285.88 million
Alternatively
BEPSales = 54,000,000 / (6,800/36,000 * 100) = 54,000,000 / 18.889% = Rs.285.88 million

b5631087-a658-4320-8d32-57c66f5ccb30-image.png

Answer 2.
Result will be higher break-even point if variable cost per Cam Shaft increases as a percentage of selling price.
Reason is that contribution margin will be decreasing on other hand if variable expenses will be increasing as a percentage of selling price. This means that more Cam Shaft units would be required to sell in order to generate enough contribution margins to cover fixed cost of the business.

Answer 3.
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Assignment Solution
Net Operating Income 1,034 586
Required Working:
Current Sales = 160,000 Units
New Proposed Sales Volume = 160,000 * 125 / 100 = 200,000 Units Reduced Selling Price = 36,000 * 90 / 100 = Rs. 32,400 Per Unit
As, we can observe from the comparison of present and proposed structure, results are not favorable if factory decides to change the structure and increase the sales volume by reduction in selling price.25% increase in volume is not enough to off-set 10% reduction in selling price.
We can see a reduction in contribution margin both in terms of per unit (from Rs. 6,800 to Rs.3,200) and in total (from Rs. 1,088 million to Rs. 640 million) if factory decides to increase its sales volume up-to 200,000 units of Cam Shaft. On the other hand, fixed cost (Rs. 54 million) is same in both structures. So, less contribution margin will be available to cover fixed cost which ultimately decreases the net operating income from Rs. 1,034 million to Rs. 586 million (almost a 43.32% reduction ((586-1,034)/1,034).
Hence, 10% reduction in selling price will increase 25% sales volume but there will be reduction in contribution margin and net operating income of the business which is not favorable at all.
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SOLVED FIN704 GDB2 Solution and discussion
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M

Accounts Receivable Management
How to prepare a good Accounts Receivable policy

Accounts receivable management incorporates is all about ensuring that customers pay their invoices. Good receivables management helps prevent overdue payment or non-payment. It is therefore a quick and effective way to strengthen the company’s financial or liquidity position. This Wiki explains the importance of receivables management, the benefits and how to prepare a good receivables process.
The importance of receivables management What is the benefit? Preparing good receivables management Which systems will you require? Automating receivables management
The importance of receivables management

Every company wants to buy low and sell high. But they can lose everything with poor receivables management during the last phase of the sales process (payment). Over half of all bankruptcies can be attributed to poor receivables management, which demonstrates its importance. Receivables management involves much more than reminding customers to pay. It is also about identifying the reason for non-payment. Perhaps a product or service was not delivered? Or there was an administrative error in the invoice? Good receivables management is a comprehensive process consisting of:
Determining the customer’s credit rating in advance Frequently scanning and monitoring customers for credit risks Maintaining customer relations Detecting late payments in due time Detecting complaints in due time Reducing the total balance outstanding (DSO) Preventing any bad debt in receivables outstanding
What is the benefit?

Good receivables management directly contributes to a company’s profit because it reduces bad debt. The company also has a better cash flow and higher available liquidity for use in investments or acquisitions. Furthermore, good receivables management boosts a company’s professional image.
Preparing good receivables management

In principle, good receivables management involves two steps. Firstly, you determine your strategy and then you specify the appropriate procedures.
Step 1. Determine the strategy
Which customers do you accept and under which conditions? Which customers do you monitor? Who should no longer be accepted, and when is the exit?
Step 2. Prepare appropriate procedures
What is your invoicing process like? What is your invoice like? When do you remind a customer by phone? When do you remind a customer in writing? What does the reminder look like? When do you engage a debt collection agency? When will you start legal proceedings? What is the role of your employees in this respect? Will you choose outsourcing or in-house management?
Which systems will you require?

Companies use different applications and systems to limit the risks and update the data. These can help you set up and design your receivables management.
Acceptance system. Based on credit information, you determine whether a new customer is accepted or not. This may be a manual or automated process. Monitoring system. This system checks the entire portfolio for continuous insight into existing customers and suppliers. This is essential, particularly with regard to chain parties. Invoicing system. Invoices may be sent manually or automated (sometimes as a digital invoice) and reminders must be logically aligned. Bookkeeping system. All receivables and payables are booked in this system, which provides insight into the cash flow and receivables risk. CRM system. The Customer Relationship Management (CRM) system lists information relating to agreements, contact and contracts with customers. Complaints can also be processed in this system to improve insight into the background of non-payment.
Automating receivables management

Automating receivables management allows you to link all the above systems. This improves workflow efficiency and provides better insight by generating cash flow and customer reports. Automatically linking credit information reduces the percentage of non-paying new customers. By automatically integrating the debt collections in the process, the percentage of non-paying existing customers also falls.

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SOLVED CS703 Assignment 2 Solution and Discussion
CS703 - Advanced Operating Systems • cs703 assignment 2 solution discussion fall 2019 • • zareen

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@zareen said in CS703 Assignment 2 Solution and Discussion:

Question 1: Total Points (10)
Consider performance of FCFS algorithm for three computer-bound processes. If process P1 takes 25 seconds, P2 takes 4 seconds and P3 takes 5 seconds and processes arrive in the given order P1, P2, P3. You need to calculate the following:
a) Turnaround Time per process.
b) Average Turnaround time of processes

Ideas Solution Example
Scheduling Algorithms
The following subsections will explain several common scheduling strategies, looking at only a single CPU burst each for a small number of processes. Obviously real systems have to deal with a lot more simultaneous processes executing their CPU-I/O burst cycles.
6.3.1 First-Come First-Serve Scheduling, FCFS

FCFS is very simple - Just a FIFO queue, like customers waiting in line at the bank or the post office or at a copying machine.
Unfortunately, however, FCFS can yield some very long average wait times, particularly if the first process to get there takes a long time. For example, consider the following three processes:
Process Burst Time P1 24 P2 3 P3 3
In the first Gantt chart below, process P1 arrives first. The average waiting time for the three processes is ( 0 + 24 + 27 ) / 3 = 17.0 ms.
In the second Gantt chart below, the same three processes have an average wait time of ( 0 + 3 + 6 ) / 3 = 3.0 ms. The total run time for the three bursts is the same, but in the second case two of the three finish much quicker, and the other process is only delayed by a short amount.
8b22675b-ab0c-43e8-b79b-c0981fd55469-image.png
8954e572-dbbd-4b40-a2f6-8949dfcfebf8-image.png

FCFS can also block the system in a busy dynamic system in another way, known as the convoy effect. When one CPU intensive process blocks the CPU, a number of I/O intensive processes can get backed up behind it, leaving the I/O devices idle. When the CPU hog finally relinquishes the CPU, then the I/O processes pass through the CPU quickly, leaving the CPU idle while everyone queues up for I/O, and then the cycle repeats itself when the CPU intensive process gets back to the ready queue.
SOLVED ENG521 Assignment 1 Solutions and Discussion
ENG521 - Language Classroom Management • eng521 assignment 1 solution discussion fall 2019 • • zareen

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@zareen said in ENG521 Assignment 1 Solutions and Discussion:

Q2. Suppose you are a language teacher and there are some problematic students in your class who are also very sensitive to criticism. You need to use covert management approach to handle such students and to maintain the discipline in the class. Write a note on the covert management approach by highlighting that how you will use this approach in classroom to deal with these difficult students.
(10Marks)

Teaching children and managing sometimes difficult situations is never an easy job. Teaching can sometimes become stressful even for the most accomplished teacher. It is vitally important that teachers think and feel as if they are in control all the time. Positive attitudes are contagious. By being positive, you will affect and change the children‘s outlook within the class in an empathetic and forward-looking manner. Never let the children know you have doubts in your own ability or are unable to cope in particular situations. Exude confidence at all times.

Tips: The golden rules of teaching
Believe that you can make a difference. Take your time and use the SMART goals. Celebrate all your achievements, however small. Understand that you are human and you will make mistakes. Remember, mistakes are merely the portals to learning. It is important to understand that children‘s behaviour mayonly improve slightly or sometimes not at all. It may even get worse before it gets better, which can make us feel helpless, even inadequate. Keep a flexible approach and do what works best for you and the children.• Plan ahead, but be flexible and accept change. Remember it takes time to accomplish all your goals. Also, keep your goals realistic. Don‘t take it personally when sometimes children will not show appreciation for your efforts. If you feel overwhelmed, talk it through with another colleague. Take time out to enjoy a healthy lifestyle, including exercise, healthy eating and sleep. Adopt a sense of humour and have some fun.

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