Accounting Answers

What are the eight member standards for successful budget negotiating procedures?

What accounting standard is relevant to the presentation of financial statements including budgets?

explain the involvement of operational staff in the consultative processes for advising on cost information when formulating budgets and the implications for expense in the organization

Mr Zoo is planning to set up a mini Zoo in Howick.

The following relates to different pricing plans of visiting the zoo and costs of running the zoo.

Pricing Plan 1 - $30 per person (a special pack will be included)
Pricing Plan 2 - $25 per visitor (the special pack not to be included)

Variable Costs per visitor

Special Pack - $8
Zoo Consumables - $7
Zoo Expenses - $2

Total Fixed Costs - $200,000


REQUIRED: Study the information above then answer the following questions.

Using the CVP formula, calculate the number of units (and its dollar amount) for achieving
Breakeven
A profit of $30,000 for both plans.
Calculate the Contribution Margin ratio for both plans.
Describe the meaning of Contribution Margin ratio.
Explain the relationship between Contribution Margin ratio and Number of Breakeven units.
Explain why it is important to calculate Margin of Safety.

Differences between cash, revenue and expenditure. Provide an example of each category and which budget/s it is relevant to preparing.

Why is it necessary for boards to delegate financial responsibilities or accountabilities? Is there a difference between responsibility and accountability in this context?

The board is concerned about the internal control procedures currently in place. Why is it important that these be reviewed and, if necessary, modifications made?

Demonstrate the procedures that should be followed to record financial data in a computerised system. You will need to negotiate a time and place for the demonstration with your assessor.

Why might it be necessary to consolidate and/or convert financial data to allow it to be analysed in accordance with organisational requirements?

How data might be consolidated or converted to allow it to be analysed?