快速查题-ACCA英国注册会计师试题

 A manufacturing company which produces a range of products has developed a budget for the life-cycle of a new product, P. The information in the following table relates exclusively to product P:  

                                                                                         Lifetime total                                Per unit 

Design costs                                                                   $800,000 

Direct manufacturing costs                                                                                                   $20 

Depreciation costs                                                         $500,000

 Decommissioning costs                                                $20,000 

Machine hours                                                                                                                           4 

Production and sales units                                             300,000

 The company’s total fixed production overheads are budgeted to be $72 million each year and total machine hours are budgeted to be 96 million hours. The company absorbs overheads on a machine hour basis. 

What is the budgeted life-cycle cost per unit for product P? 

A company has produced the following information for a product it is about to launch: 

Units                                                                                        2,000                     5,000                  7,000 

Variable production cost per unit                                       $2.30                     $1.80                   $1.20

 Fixed production costs                                                     $3,000                   $3,500                $4,000

 Variable selling cost per unit                                            $0.50                       $0.40                $0.40 

Fixed selling costs                                                             $1,500                    $1,600               $1,600

 Administrative costs                                                            $700                        $700                  $700 

What is the life-cycle cost per unit?    

The following statements relate to the justification of the use of life cycle costing: 

(i) Product life cycles are becoming increasingly short. This means that the initial costs are an increasingly important component in the product’s overall costs. 

(ii) Product costs are increasingly weighted to the start of a product’s life cycle, and to properly understand the profitability of a product these costs must be matched to the ultimate revenues. 

(iii) The high costs of (for example) research, design and marketing in the early stages in a product’s life cycle necessitate a high initial selling price. 

(iv) Traditional capital budgeting techniques do not attempt to minimise the costs or maximise the revenues over the product life cycle. 

Which of these statements are substantially true? 

 Company B is about to being developing a new product for launch in its existing market. They have forecast sales of 20,000 units and the marketing department suggest a selling price of $43/unit. The company seeks to make a mark-up of 40% product cost. It is estimated that the lifetime costs of the product will be as follows:

 (1) Design and development costs $43,000. 

(2) Manufacturing costs $15/unit. 

(3) Plant decommissioning costs $30,000. 

The company estimates that if it were to spend an additional $15,000 on design, manufacturing costs/unit could be reduced. 

What is the life cycle cost? 

Life cycle costing is the profiling of cost over a product's production life

 Life cycle costing is particularly useful for products with a short expected life cycle. 

When are the bulk of a product's life cycle costs normally determined? 

Which of the following is NOT a way of maximising return over a product life cycle? 

 The following statements have been made about life cycle costing.

 (1) Life cycle costing is needed in order to plan for the maximum length of commercial life for new products. 

 (2) Life cycle costing is particularly suited to businesses that manufacture products with long life cycles and who have significant research and development costs. 

Which of the above statements is/are true? 

 This question appeared in the June 2015 exam. 

The following statements have been made about life cycle costing: 

(1) It focuses on the short-term by identifying costs at the beginning of a product's life cycle 

(2) It identifies all costs which arise in relation to the product each year and then calculates the product's profitability on an annual basis 

(3) It accumulates a product's costs over its whole life time and works out the overall profitability of a product 

(4) It allocates costs to each stage of a product's life cycle and writes them off at the end of each stage 

Which of the above statements is/are correct?