Cost Control – Knowsia

SCS – L3 – Q34 – Internal analysis

Explain benchmarking and its advantages for Zamu Fashions in Zamora.

Question

(a) In the business world, companies use benchmarking as a point of reference. Benchmarking occurs across all types of companies and industries. Many companies have positions or offices that are in charge of benchmarking.
Required:
(i) Explain the term benchmarking.
(ii) Explain FOUR advantages companies gain from benchmarking.

(b) Zamu Fashions is a Zamoran private company owned mainly by the Zamu family. Most of its clothing and accessories are produced and marketed by the company (some are manufactured by outside contractors). For other products, notably fragrances, cosmetics, and eyewear, Zamu Fashions licenses its brand names to other companies. The Board of Directors of Zamu Fashions is considering expanding into new foreign markets with athletic clothing, hotels, and bridal shops.

Required:

Advise Zamu Fashions on the most suitable foreign market entry strategy for each of the new line of business.

Answer

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Tags: Benchmarking, Cost Control, Innovation, Performance Improvement, Position Audit, Zamora
Level: Level 3

Topic: Internal analysis

MA – L2- Q27 – Advanced Variance Analysis

Calculate material price, mix, and yield variances for Product Z at Tamale Industries using standard and actual cost data.

Question

Tamale Industries has the following standard cost for producing 1 unit of Product Z:

Material	Quantity	Price per kilo	Cost
Material M	5 kilos	GH¢8	GH¢40
Material N	3 kilos	GH¢12	GH¢36

Actual results showed that 9,600 kilos of materials were used during a particular period as follows:

Material	Quantity	Cost
Material M	6,700 kilos	GH¢51,400
Material N	2,900 kilos	GH¢39,500

During the period, 1,250 units of Product Z were produced.

Required:
(a) Calculate the following variances:

Direct materials price variance
Materials mix variance
Materials yield variance
(b) Summarize the standard materials cost, materials price variance, materials mix variance, materials yield variance, and actual materials cost.

Answer

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Tags: Cost Control, Material Mix Variance, Material Price Variance, Material Yield Variance, Standard Costing, Variance analysis
Level: Level 2

Topic: Advanced Variance Analysis

MA – L2 – Q23 – Advanced Variance Analysis

Calculate total materials cost variance for Tamale Chemicals and analyze into price, usage, yield, and mix components for GreenLube production.

Question

Tamale Chemicals, based in Tamale, has the following standard cost for producing 9 litres of GreenLube:

5 litres of Material X at GH₵0.70 per litre
5 litres of Material Y at GH₵0.92 per litre.

There are no inventories of materials, and all material price variances relate to materials used. Actual results showed that 100,000 litres of materials were used during a particular period as follows:

45,000 litres of Material X: cost GH₵36,000
55,000 litres of Material Y: cost GH₵53,350

During the period, 92,070 litres of GreenLube were produced.

Required:
Calculate the total materials cost variance and analyse it into its price, usage, yield, and mix components.

Answer

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Topic: Advanced Variance Analysis

MA – L2 – Q9 – Models of evaluation Quality

Distinguish between cost control and cost reduction, and discuss the emphasis on cost reduction in management accounting training.

Question

It has been suggested that much of the training of management accountants is concerned with cost control whereas the major emphasis should be on cost reduction.

Required:
(a) Distinguish between cost control and cost reduction;
(b) Discuss the proposition contained in the statement.

Answer

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Tags: Cost Control, Cost Efficiency, Cost Management, Cost Reduction, Management Accounting, Performance Improvement, Quality management
Level: Level 2

Topic: Models of Evaluation Quality

Tag (SQ): Cost Control

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SCS – L3 – Q34 – Internal analysis

Explain benchmarking and its advantages for Zamu Fashions in Zamora.

MA – L2- Q27 – Advanced Variance Analysis

Calculate material price, mix, and yield variances for Product Z at Tamale Industries using standard and actual cost data.

MA – L2 – Q23 – Advanced Variance Analysis

Calculate total materials cost variance for Tamale Chemicals and analyze into price, usage, yield, and mix components for GreenLube production.

MA – L2 – Q9 – Models of evaluation Quality

Distinguish between cost control and cost reduction, and discuss the emphasis on cost reduction in management accounting training.

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Tag (SQ): Cost Control

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SCS – L3 – Q34 – Internal analysis

Explain benchmarking and its advantages for Zamu Fashions in Zamora.

You're reporting an error for "SCS – L3 – Q34 – Internal analysis"

MA – L2- Q27 – Advanced Variance Analysis

Calculate material price, mix, and yield variances for Product Z at Tamale Industries using standard and actual cost data.

You're reporting an error for "MA – L2- Q27 – Advanced Variance Analysis"

MA – L2 – Q23 – Advanced Variance Analysis

Calculate total materials cost variance for Tamale Chemicals and analyze into price, usage, yield, and mix components for GreenLube production.

You're reporting an error for "MA – L2 – Q23 – Advanced Variance Analysis"

MA – L2 – Q9 – Models of evaluation Quality

Distinguish between cost control and cost reduction, and discuss the emphasis on cost reduction in management accounting training.

You're reporting an error for "MA – L2 – Q9 – Models of evaluation Quality"

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