Individual Assignment

Satisfactory Essays
Stamford University Bangladesh
MBA Program, Class Test
Cost and Management Accounting

INDIVIDUAL ASSIGNMENT

The questions in this exercise are based on the Benetton Group, a company headquartered in Italy and known in the United States primarily for one of its brands of fashion apparel –United Colors of Benetton. To answer the questions, you will need to download the Benetton Group’s 2004 Annual Report at www.benetton.com/investos . Once at this website, click on the link to ward the top of the page called “Site Map” and then scroll down to the heading called “Financial Reports” and click of the year 2004 .You do not need to print this document to answer the questions.

Required: 1. How do the formats of the income statements shown on pages 33 and 50 of Benetton’s annual report differ from one another (disregard everything beneath the line titled “ income from operations”)? Which expenses shown on page 50 appear to have been reclassified as variable selling costs of page 33?

2. Why do you think cost of sales is included in the computation of contribution margin on page 33?

3. Perform two separate computation of Benetton’s break-even point in euros. For the first computation, use data from 2003.For the second computation, use data from 2004. Why do the numbers that you computed differ from one another?

4. What sales volume would have been necessary in 2004 for Benetton to attain a target income from operations of € 300 million?

5. Compute Benetton’s margin of safety using data from 2003 and 2004 . Why do your answer for the two years differ from one another?

6. What is Benetton’s degree of operating leverage in 2004 ? If Benetton ‘s sales in2004 had been 6% higher than what is shown in the annual report, what income from operations would the company have earned?. What percentage increase in income from operations does this represent?

7. What income from operation would Benetton have earned in 2004 if it

You May Also Find These Documents Helpful

  • Satisfactory Essays

    individual assignment

    • 326 Words
    • 2 Pages

    Hospitality Law INDIVIDUAL ASSIGNMENT Word count: 1000 words Submission date: 1st July 2015 Khalid was interested in buying Siti’s painting which she had named “Hawa”. Khalid met Siti and told her that he will pay her RM5,000 for “Hawa”. Siti said she will think about it. 2 weeks later Siti told Khalid that she will sell him the painting for RM7,000. Khalid said that the price was too high and he did not want the painting. One week later, Khalid received bonus from his employer. He immediately…

    • 326 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Individual Assignment

    • 897 Words
    • 4 Pages

    BIB/BENTRE/BPA/BTM/BBA/BMAKT/BACCT Semester : 1 (Feb 2012 – July 2012) Commence Date : Week 3 Due Date : Week 11 Unit Controller / Examiner : Mr. Maniam Contact Number : 03- 83178333 ext 8138 E-mail : maniam@limkokwing.edu.my This group assignment will contribute 25% to your final grade. Objective • To provide students with a better understanding of accounting processes in a business environment. Students will be able source out information on a number of topics in accounting that…

    • 897 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Individual Assignment

    • 860 Words
    • 4 Pages

    Individual Assignment for BFC32202. This assignment reflect at Level C4 (refer RPP04) which required student to do an analysis to answer the question. You can refer to any reference such as text books, interviews, internet sources and other related technique to find the related and comprehensive solutions. Write an assay with maximum 10 pages using Time New Roman, font size 12, 1.5 spacing and complete with references. The submission of this individual assignment should be submitted before 26…

    • 860 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Individual Assignment

    • 286 Words
    • 2 Pages

    Individual Assignment Topic: Apply your understandings of financial statements, working capital management, financial planning to identify, analyze, and propose solutions to the problems presented in “Clarkson Lumber Company” case. Requirements: * Answer all the guideline questions. Support your answer with necessary calculations, forecasts, analysis… * Summarize the problems and propose solutions for “Clarkson Lumber Company” based on your answers and analysis of the guideline questions…

    • 286 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    individual assignment

    • 1485 Words
    • 7 Pages

    BFF5915 – Individual Assignment Due Date: 5pm Friday 17th October This assignment is to be done individually. This means that you are required to answer the questions in the assignment on your own. The purpose of the assignment is to help you become more familiar with pricing options, using a specifically designed piece of software. The pricing of options is a very technical area, and most of us do not have the technical expertise to price options from first principals. Therefore in your working…

    • 1485 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Individual Assignment

    • 754 Words
    • 4 Pages

    Charter Team Charter Analysis Individual Assignment Week #3 Ameerah Muhammad Dr. Sherwin MGMT/521 Analysis of Team Charter First I would like to define the word team. Team in the Webster’s dictionary is described as a group of people linked in a common purpose. Teams are especially appropriate for conducting tasks that are high in complexity and have many interdependent subtasks. After reading my Teams Bio’s over I realized that we are very different individuals. Considering how different my…

    • 754 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Individual Assignment

    • 718 Words
    • 3 Pages

    Individual Assignment – Marketing and Brand Building Course Code: 09MKG4010BK Course Title: Marketing and Branding Building Student Name: Lui Win Nam Prisca Student Number: 14611627 Name of Lecturer: Mr. Duncan Chan Date of Submission: 12 December 2014 Feedback: If two people or groups cooperate, they work together in order to achieve a result that is good for both of them. Communication is really important in cooperating with others. There are different kinds of people in the society and whenever…

    • 718 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Individual Assignment

    • 713 Words
    • 3 Pages

    Demonstrate knowledge of the underlying concepts and principles related to entrepreneurial and management activities. Deliverables This assignment represents 30% of the total INCOURSE marks for this subject. The deliverables are: A report of 2,000 words You should state the number of words used on the cover of the assignment. You may include diagrams or figures, reference and bibliography lists and any appendices without word penalty. The standard sliding scale of…

    • 713 Words
    • 3 Pages
    Powerful Essays
  • Satisfactory Essays

    individual assignments

    • 496 Words
    • 2 Pages

    PSYC 305 Wk 7 Individual Assignment August 24, 2013 1. Reward System – 16 2. Organizational clarity – 15 3. Standards of Performance – 14 4. Warmth and Support – 18 5. Leadership – 14 6. Communication – 18 7. Innovation – 12 8. Feedback and Controls – 10 9. Teamwork – 15 10. Involvement – 8 Score 14 – Supportive It is important to understand the strengths and weaknesses of an organization or group. It helps to see what we can do more of or less of to improve ourselves. The more…

    • 496 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Individual Assignment

    • 843 Words
    • 4 Pages

    This assignment will give you the opportunity to go beyond the bounds of what is covered in this course. I want you to analyze and critique a current article (no more than 6 months old) from a newspaper or a business magazine. The article should be related to any of the topics covered in Organizational Behaviour. Once you have selected the article, your task is to research whether the article’s information is accurate and based on theory and/or empirical research. The purpose of this assignment…

    • 843 Words
    • 4 Pages
    Good Essays