SQAHND财政预算34Word格式文档下载.docx

SQAHND财政预算34Word格式文档下载.docx

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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.Theycanincreasetheworkingefficientlythroughthehigherskill.

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.

PartB

5.0Usingfourdifferentmethodstoevaluatethefinancial.

5.1Identifytheaccountingrateofreturn.

ARR

Averageprofit=

=660,000

Accountingrateofreturn=

=26.4%

Thecasesshowthatthecompanyshouldhaveanaccountingrateofreturnofatleast15%,throughcalculation,theARRis26.4%.Therefore,thedatahasmeetcompanystandards.

5.2Identifythepayback.

Thecompanyhopestorecoverthecostoftheinvestmentwithin4fouryears.Infact,theyjustuse3years341days.（seeAppendix3.）

5.3IdentifytheNetpresentvalue.

TheNPVmethodcalculatesthepresentvaluesofcashinflowsandoutflowsandestablisheswhether.Basically,NPVprovidesanobjectiveforevaluatingandselectinginvestmentprojects.Moreover,ittakesintoaccountrequiredrateofreturnofcompanyandthentakesintoaccounttimevalueofmoney.Buttherearesubstantialuncertainlyfactorsinourworld.Forinstancetheinflationanddeflation,theexchangerate.

WhentheMatteck’scostofcapitalis10%.TheNPVis（46200）.TheNPVvaluelessthan0.Thecompanyshouldnotinvestthisproject.（seeAppendix4.）

5.4IdentifytheInternalrateofreturn.

Whenthepresentvalueis5%,theinternalrateofreturnis9.39%.Whichlessthan10%ofcompanystandard.therefore,thecompanyshouldnotinvestthisproject.

（seeAppendix5）

6.0Recommendationsforinvestmentdecision.

1.Accordingthefourmethod,TheARRandPaybackarebothimplementforthisproject,buttheNPVandIRRarenotimplementedforthisProject.Inthiscase,thecompanyshouldfocusontheNPVandIRR.

2.Bycalculatesthenetpresentvalues,itseemsthatthedeficit,whichmeansthattheannualcashflowsarenotenoughtoallowmoreinteresttobedeductedandstillrepaytheoriginalinvestment.Thisinvestmentisunworthy.

3.Withinfiveyears.Allthemarketfactorsarechangeable.Theinformationwillhavedifferentchange.Andtherearemaybesomeothersituationsoccurred.SotheMatteckPLCshouldnotconcernwiththeproject.

7.0Conclusion

Thereportcanhelpthecompanymaketheflexbudget,andthenbyvariancesanalysisandusethefourmethodstoevaluatethefinancial.Throughtherecommendationscanhelpthecompanychoosethebestinvestmenttogainthemaximumprofits.

8.0Appendices

8.1Appendix1

MatteckPLCFlexedbudget

ForDecember2011

Originalbudget

5000units

Flexedbudget

4500units

Actualresults

Variance

F/A

₤

DirectMaterial

180,000

162,000

160,000

2000（F）

DirectLabour

100,000

90,000

95,000

5000（A）

VariableOverheads

50,000

45,000

47,500

2500（A）

SupervisionCost

3,300

3,400

100（A）

RentandRates

1,000

1,200

200（A）

AdministrationOverheads

2,000

2,100

Depreciation

3,000

0

Total

306,300

312,200

5,900（A）

8.2Appendix2

8.3Appendix3

Payback

Capitalcost₤2,500,00

Year1₤500,000

Year2₤600,000

Year3₤700,000

Year4₤750,000

Year5₤750,000

Total₤3,300,000

Payback=3year+

×

365days

=3year341days

8.4Appendix4

Year

Annualcashflow

Presentvalue

Factorsat10%

Present

Value

₤

（2,500,000）

1,000

1

500,000

0.909

454,500

2

600,000

0.826

495,600

3

700,000

0.751

525,700

4

750,000

0.683

512,250

5

0.621

465,750

2,453,800

NPV

（46,200）

8.5Appendix5

Factorsat5%

0.952

476,000

0.907

544,200

0.864

604,800

0.823

617,256

0.874

588,000

2,830,256

330,256

R=10%NPV=（46200）

R=5%NPV=330256

IRR=5%+

5%=9.39%