《ACCA P Advanced Performance Management.doc》由会员分享，可在线阅读，更多相关《ACCA P Advanced Performance Management.doc（177页珍藏版）》请在三一文库上搜索。
1、ACCA P5 Advanced Performance ManagementPerformanceManagementPART 3FRIDAY 6 DECEMBER 2002QUESTION PAPERTime allowed 3 hoursThis paper is divided into two sectionsSection A BOTH questions are compulsory and MUST beansweredSection B TWO questions ONLY to be answeredPaper 3.3Section A BOTH questions are
2、 compulsory and MUST be attempted1 Privmed is a privately owned profit seeking hospital that specialises in operations to replace hip and knee joints.Privmed traditionally determines its prices by adding a 10% mark-up to the budgeted full cost of an operation. Thefixed overheads are absorbed on the
3、basis of operating hours using a predetermined rate. Privmed Operating and Financial Data for 2001Hip Knee TotalTotal operating capacity (hours) 10,800Theatre utilisation ratio 70%Average duration of operation 30 hours 36 hoursNumber of operations taken * 1270Total Costs ?15,036,780Fixed overheads ?
4、12,000,000* not givenThe variable costs per operation are as budgeted.Privmed Budgeted Data for 2001Hip Knee TotalFixed overhead ?12,000,000Annual operating hours 8,000Variable cost per operation ?1,450 * not givenRequired:(a) Calculate the number of hip operations undertaken during the year and the
5、 variable cost of performing a kneeoperation. (4 marks)(b) Calculate the prices that Privmed would have charged in 2001 for:(i) A hip operation;(ii) A knee operation. (4 marks)(c) An activity based costing study recently discovered that the fixed overheads are determined by non operating timerelated
6、 activities. The study revealed the following data:Activity Cost Driver Hip Knee Fixed 0verheadsConsultations with potential patients Number of consultations 3,000 2,000 ?8,980,000X-rays Number of X-rays 6,200 6,200 ?1,800,000Post-operative care Days of care 7,860 23,580 ?1,220,000Required:Re-calcul
7、ate the prices that would have been charged in 2001 for each knee and hip operation by using anactivity based costing approach. (5 marks)(d) Compare the results of your calculated prices in (b) and (c) and suggest with reasons what pricing decisionsyou would recommend to the hospital. (5 marks)(8e)
8、The Regional Public Health Authority is under pressure to reduce the length of its patients waiting lists for kneeand hip operations. In an effort to improve the situation the area manager has approached Privmed and askedthem to consider whether they would undertake some operations on a fee-paying b
9、asis. The approach iswelcome, as the hospitals Theatre Manager would like to improve the utilisation of the facilities. Indeed, thehospital recently employed a consultant for a fee of ?70,000 to assess the financial viability of undertaking publichealth authority operations at differing levels. The
10、consultant concluded that contracting to undertake publichealth authority operations would also add to the administrative workload currently undertaken by the hospitale.g. billing and quality monitoring activities. It would be necessary to employ an additional clerk for ?15,000 paand additional vari
11、able administrative cost per operation would be ?150 for a knee operation and ?100 for a hipoperation. If the hospital were to take on this work, it must also consider an additional requirement to keep 25%of its total operating capacity spare to meet the immediate needs of its special clients i.e. i
12、t cannot plan to usethis proportion of its total capacity.2The public health authority has approached the hospital and has proposed two alternative one-year contracts:Contract (1)The hospital would be required to perform an equal number of hip and knee operations during the next year thatwould utili
13、se their remaining available spare capacity. The public health authority has agreed that the contractprice should be composed of all the relevant incremental costs of the contract plus an 80% mark up.Contract (2)The hospital would be required to perform 1,500 knee operations. The public health autho
14、rity will refund all theadditional administrative costs resulting from the contract. The 1,500 additional knee operations would requirethe hospital to install a temporary operating theatre for a total cost of ?500,000 with a two-year life. Oncompletion of the contract, the hospital estimates that it
15、 could lease the temporary theatre during its second yearwith the following revenue estimates:30% probability of earning ?200,00040% probability of earning ?100,00030% probability of earning ?80,000The public health authority is only prepared to pay ?3,500,000 in addition to the refund of administra
16、tive costsfor this one-year contract.Required:(i) Calculate the contract price and estimated financial benefit of Contract 1; (7 marks)(ii) Calculate the estimated financial benefit of Contract 2. (3 marks)Note: The data/calculations in this section are at 2001 price levels. (f) If either of the con
17、tracts were to be taken on, it would result in no capacity being available to meet an unexpectedincrease in demand from its private patients.Required:Explain the potential revenue consequences of such an event occurring and compile a list of information/datathat you require to assess the financial c
18、onsequences of the private patient demand unexpectedly rising to80% of the total capacity during the contract year. (7 marks)(g) Suggest three broad areas of non-financial performance that the public health authority is likely to have tomonitor as part of a contract involving knee and hip operations
19、. Your answer should include specific variablesthat are to be monitored. (5 marks)(40 marks)3 P.T.O.2 Mack-King, a long established UK fast food chain expanded its operations abroad for the first time in 1999 in Coja.Although the UK business is much larger than the new operation in Coja, they both o
20、perate as semi-autonomousbusiness divisions with their own performance targets. Compared with the UK, the Coja business environment ischaracterised by significant political uncertainty and limited general awareness of Mack-King products and outletlocations.Financial Data (?000) for Mack-King2000 ACT
21、UALS 2001 ACTUALSUK COJA TOTAL UK COJA TOTALTURNOVER 780 70 850 845 106 951Less:Labour 200 10 210 216 12 228Materials 150 20 170 165 24 189Other Operating Costs 80 5 85 85 5 90 430 35 465 466 41 507 Marketing 60 30 90 70 70 140Interest (Group) 14 41Depreciation and amortisation 100 8 108 100 16 116
22、160 38 212 170 86 297 Total Costs 590 73 677 636 127 804Profit 190 (3) 173 209 (21) 147NBV of Fixed Assets (year end) 520 40 560 520 90 610(includes capital expenditurein the year)Capital expenditure in year 90 30 120 100 66 166Long-Term Debt (Group) 140 340Capital and Reserve 600 744Required:(a) Pr
23、ovide an assessment of the total corporate financial performance of Mack-King and of the contributionmade towards it by each of the two divisions between 2000 and 2001. (8 marks)(b) Identify and explain the purpose of any additional information that would be required to provide a morecomplete assess
24、ment of Mack-Kings financial performance. (4 marks)(c) Explain the problems that may arise in endeavouring to assess the comparative financial performance of themanagement in the two divisions. Suggest any allowances/adjustments that could be made to improve thevalidity of any comparisons between ma
25、nagers operating in different countries. (4 marks)(d) Suggest two separate measures of performance that would be appropriate for a fast food chain, for each ofthe following areas:Service Quality;Marketing Effectiveness;Personnel;Food Preparation. (4 marks)(20 marks)4Section B TWO questions ONLY to b
26、e attempted3 You are responsible for managing the preparation of all revenue and cost budgets for a motor componentmanufacturer. You are aware that the external environment has a significant impact on the business activity andfinancial performance of your company and that the current information sys
27、tems are underdeveloped and ineffectivein this respect.Required:(a) Identify which aspects of the external environment you are likely to consider and give reasons for your choice.(10 marks)(b) Identify where you might find the relevant sources of information. (5 marks)(c) Suggest how an external env
28、ironment information system could be introduced into your company.(5 marks)(20 marks)4 (a) Explain the role and content of a Mission Statement. (5 marks)(b) Explain how a Mission Statement could contribute towards the planning and performance measurementprocess. (9 marks)(c) Identify the potential p
29、roblems arising from using a Mission Statement to manage performance. (6 marks)(20 marks)5 An essential aspect of financial and business planning is concerned with estimating costs and revenues and decidingthe optimum output and price levels. A company produces a single product and operates in a mar
30、ket where it has tolower the sale price of all its units if it wishes to sell more. The companys costing and marketing departmentscurrently use the following cost and revenue model (all output is sold in the current period):Current Model:Total Costs = 5,000 + 06xTotal Revenue = 20x 001x2Where x = th
31、e number of units soldThe company has recently updated its cost and revenue model:Revised model:Total Costs = 4,750 + 08xTotal Revenue = 19x 0009x2The acceptability of the current model and the proposed changes as a basis for profit planning and for monitoringperformance is to be reviewed.Required:(
32、a) Explain the structure of the current and the revised model. (4 marks)(b) It has been estimated that the revised model will result in an optimal output of 1,011 units being produced andsold.(i) Suggest two alternative ways of determining this optimal level of output. (3 marks)(ii) Discuss the exte
33、nt to which adherence to this output target is a satisfactory indicator of managerialperformance. (3 marks)(c) Name and comment on cost and revenue factors which should be considered in order to improve the validityof the model as a profit forecasting model. (10 marks)(20 marks)End of Question Paper
34、5PerformanceManagementPART 3FRIDAY 6 JUNE 2003QUESTION PAPERTime allowed 3 hoursThis paper is divided into two sectionsSection A BOTH questions are compulsory and MUST beansweredSection B TWO questions ONLY to be answeredPresent Value and Annuity Tables are on pages 7 and 8Paper 3.32Section A BOTH q
35、uestions are compulsory and MUST be attempted1 A motor car manufacturer has been specialising in the production and sale of one model of car. The model issomewhat dated, and the current sales forecast indicates that the sales will decline from the current level (2003) of170,000 cars per annum to 150
36、,000 in 2004, 130,000 in 2005 and 110,000 in 2006. The company suppliesto order and no stocks are held. Carbon monoxide emission regulations will prevent the model being manufacturedand sold after December 2006. The companys current estimates of the selling price and costs in 2004 are as follows:Per
37、 car ?Selling Price 9,500Production costs:Material and labour (vary with production volume) 3,600Assembly* 4,000*75% of the assembly costs are fixed and the remainder vary with production volume.In addition, the company estimates that it will incur the following non-production costs: Marketing costs
38、 of ?60 million. 50% of these vary with sales volumeDelivery costs of ?75 million. 20% of these vary with sales volume.The Administration costs of ?10 million are fixed.The selling price, variable costs per car and total fixed costs are expected to remain constant throughout the periodfrom 2004 to 2
39、006.The companys Managing Director is unhappy with the current annual profit forecasts for 20042006 based uponthe information above and believes that the company has the potential to increase the profit to ?280m in each of theyears 2004 to 2006. The Managing Director has undertaken a strategic revie
40、w and developed the following strategies:Strategy 1A marketing proposal will enable the company to enter a new overseas market with the result that the total (includingthe overseas market) sales level will be stabilised at 160,000 cars per annum from 2004 to 2006. The market entrycosts will be ?30 m
41、illion for each of the three years.Strategy 2A re-design of the car will enhance its sales appeal and will permit the company to increase its selling price to?10,000. The re-design costs are ?30 million and are to be amortised over three years on a straight line basis. Strategy 3A radical cost reduc
42、tion programme will improve efficiency and lower all variable costs by 20%. This will add ?70million to the annual fixed overheads each year from 2004 to 2006.23 P.T.O.Required:(a) Prepare a financial analysis showing the current annual forecast of costs, revenues and profits for each ofthe years 20
43、04 to 2006 and briefly comment on the figures. Ignore inflation. (6 marks)(b) Estimate the profit in 2004 if:(i) Strategy 1 was implemented; (2 marks)(ii) Strategy 2 was implemented; (2 marks)(iii) Strategy 3 was implemented. (2 marks)(c) Estimate the profit in 2004 if all three strategies were impl
44、emented. (4 marks)(d) Explain why the total of the increase in profit arising from the three strategies implemented separately in (b)is different from the total profit calculated in (c). Illustrate your answer with a numerical reconciliation of thedifferences in the two profit figures. (5 marks)(e)
45、Explain how Gap Analysis can be used to assist a company to plan the achievement of its strategic profitobjective. Illustrate your answer with a diagram which quantifies the effect of your calculations in (a), (b),(c) and (d) above. (7 marks)(f) (i) Explain how sensitivity analysis could be used in
46、conjunction with the profit estimates that you havemade for the company and illustrate your answer with reference to each of the strategies;(ii) Calculate and comment on the percentage change in the key variable in each of strategies 1, 2 and 3from its original forecast level in order that the desired profit level of ?280m for 2004 will be achievedin each case. (8 marks)(g) What major external environmental factors need to be considered in assessing the success of the three