You are the management accountant of the CellSales which sells mobile phones at a discount. The following information has been provided to you by the financial accountant:

                                                                                  2024 - N$

Sales (100 phones)                                                     90 000

Cost of goods sold                                                       40 000

Commissions (4% of sales)                                           3 600

Contribution    46 400

Store manager's salary per year                                   7 000

Operating costs per year                                             15 700

Advertising and promotion per year                             1 500

Net profit                                                                      22 200

What are the estimated total costs if the CEO expects to sell 300 units next year?

Alexander, management & financial accountant, works full-time for NamInvestAssets, an management accounting and investment management firm, doubling as a management accountant and fixed-income security analyst. Alexander has been asked by a business contact at SMARTINVEST to accept some analytical work from SMARTINVEST on a consulting basis. The work would entail investigating potential distressed debt investments in the small-cap market. Alexander should:

(Business Ethics)

Tweety Ltd has budgeted to produce the following units during the third quarter of 2023:

July                  3 680

August             4 450

September        4 170

Two litres of direct material at N$ 6.25 per litre are required for each unit of finished product.  Ending direct material inventory is expected to be 70% of the following month’s production requirements.   Material required during any month will be purchased during the previous month.

The cost of direct material to be purchased in July amounts to:

At 31 December 2019 Mohling Company’s inventory records indicated a balance of N$ 632 000. Upon further investigation it was determined that this amount included the following:

·         N$ 112 000 in inventory purchases made by Mohling shipped from the seller 27/12/2019 terms FOB destination, but not due to be received until 2 January, 

·         N$ 74 000 in goods sold by Mohling with terms FOB destination on 27 December. The goods are not expected to reach their destination until 6 January 

·         N$ 6 000 of goods received on consignment from Dollywood Company

What is Mohling’s correct ending inventory balance at 31 December 2019?

Manic Monday Limited has incurred the following costs in relation to a unit of inventory:  

     N$

Raw materials cost                 1.50

Import duties                           0.40

Direct Labour                          0.50

Subcontracted labour costs    0.80

Refundable sales tax              0.20

Storage costs                          0.05

Production overheads (per unit) 0.25            

There was a problem with the first batch of items produced, so abnormal wastage costs of 0.10 per unit have also been incurred by Manic Monday Ltd.

At what value should Manic Monday Ltd value this inventory in its Financial Statements?

Product A has a contribution margin of N$8 per unit, a contribution margin ratio of 50%, and requires 4 machine-hours to produce.  Product B has a contribution margin of N$12 per unit, a contribution margin ratio of 40%, and requires 5 machine-hours to produce.  If the constraint is machine-hours, then the company should produce and sell:

A firm in a perfectly competitive market will tend to expand its output as long as:

(Z2 Business External environment)

The Besty Limited company used regression analysis to predict the annual cost of indirect materials. The results were as follows:

Indirect Materials Cost Explained by Units Produced

      Constant (a)                                                                 N$ 21 890

      Standard error of Y estimate                                         N$ 4 560

      r2                                                                                        0.7832

      Number of observations                                                           22

      X coefficient(s) (b)                                                               11.75

      Standard error of coefficient(s)                                         2.1876

What is the linear cost function?

The following statement is NOT true with regard to break-even analysis:

The following statement is NOT true with regard to inventories: