SALE OF GOODS ACT 1908‚ ‘ROMALPA’ CLAUSES‚ PASSING OF PROPERTY CONSUMER GUARANTEES ACT 1993 1. (a) Why is it important in a Sale of Goods (SOG) contract to be precise about the time at which property passes? (Clue: what passes with property?) * When the property pass‚ the risk of the property pass to buyer too. Under the S 22 of SOG Act‚ Unless otherwise agreed‚ the goods remain at the seller’s risk until the property therein is transferred to the buyer; but when the property therein
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CHAPTER 8 FLEXIBLE BUDGETS‚ OVERHEAD COST VARIANCES‚ AND MANAGEMENT CONTROL 8-1 Effective planning of variable overhead costs involves: 1. Planning to undertake only those variable overhead activities that add value for customers using the product or service‚ and 2. Planning to use the drivers of costs in those activities in the most efficient way. 8-2 At the start of an accounting period‚ a larger percentage of fixed overhead costs are locked-in than is the case with variable overhead
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CHAPTER 1 MANAGEMENT ACCOUNTING: INFORMATION FOR CREATING VALUE AND MANAGING RESOURCES ANSWERS TO QUESTIONS 1.1 There are several possible answers to the question. QANTAS‚ the national airline of Australia‚ has faced a number of changes to the business environment in recent years‚ including deregulation of the domestic aviation industry. This resulted in increased competition as new firms attempted to enter the industry. The most notable of these was two failed attempts by Compass to succeed
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customer loyalty‚ and perhaps most importantly‚ human capital. These intangible assets are likely to provide tremendous earnings growth in the future which determines the company’s market value. Notice also that the company’s choice of conservative accounting policies has the effect of depressing the company’s book value of equity. 2. What effect did Microsoft’s software capitalization policy have on its financial statements? Ignore any potential tax effects. a. Assume that 60% of Microsoft’s
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Capital Structure Analysis Formula Debt-to-Equity Ratio = Total Liabilities / Equity. Formula Interest Coverage Ratio = Non-current Liabilities / Cash Flow from operations Formula Debt Coverage Ratio = Earnings Before Interest and Tax / Net Finance Expense Analysis The debt-to-equity ratios indicate how risky the firms are. It measures the extent that the assets of a firm are financed by its debts and equity. Lower values of debt-to-equity ratio are favorable indicating the firm
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Summary of: The Evolution of Management Accounting by Robert S. Kaplan Almost all cost accounting practices currently in use had been developed by 1925. Over the last sixty years there has been considerable changes in the nature of the business environment. Despite this fact‚ there has been little change in designing and putting into action most cost accounting and management control procedures. For this reason it is pertinent for those in the business field to fully understand the source of
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Chapter 10 Plant Assets‚ Natural Resources‚ and Intangibles QUESTIONS 1. A plant asset is tangible; it is used in the production or sale of other assets or services; and it has a useful life longer than one accounting period. 2. The cost of a plant asset includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use. 3. Land is an asset with an unlimited life and‚ therefore‚ is not subject to depreciation. Land improvements have
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MEMORANDUM To: From: Date: [ 12/3/2012 ] Subject: Progress Report on Inventory Management Solutions The purpose of this memorandum is to report the progress in my research of possible inventory management systems to implement into a manufacturing facility. As I proposed‚ I have been gathering information by reviewing technical literature on inventory management solutions and software used in similar manufacturing facilities. My objectives were to define which supply and planning software
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convert non-financial transactions into financial transactions. ANS: F 4. Information lacking reliability may still have value. ANS: F 5. A balance sheet prepared in conformity with GAAP is an example of discretionary reporting. ANS: F 6. The Management Reporting System provides the internal financial information needed to manage a business. ANS: T 7. Most of the inputs to the General Ledger System come from the Financial Reporting System. ANS: F 8. When preparing discretionary reports‚ organizations
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INTRODUCTION The case study below‚ discusses in depth the organisational architecture of the Scanavian bank Svenska Handelsbanken and how Dr Jan Wallander implemented his new management. The case study analyses the decision rights‚ performance evaluation‚ rewards system and then depicts whether or not the organisational architecture is in balance alongside its soft culture. The last segment is a comparison of the budgeting systems used for both Svenska Handelsbanken and AV Jennings‚ in regards
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