The document provides a mark scheme for an accounting exam. It outlines how examiners should apply the mark scheme, including awarding partial marks, considering alternative correct answers, and applying the "own figure rule". It also defines the assessment objectives and quality of written communication standards. The mark scheme then works through two sample exam tasks, showing the breakdown of marks awarded for each part and the expected responses.
WEEK 5 PROBLEM SET Due week 5 and worth 200 points. Yo.docxcockekeshia
WEEK 5 PROBLEM SET
Due week 5 and worth 200 points.
You will submit your answers in a Blackboard assessment filling out charts and answering the
essays/short answer questions.
Note: There is not an option to upload your assignment, you must use the Blackboard
assessment; however, you will be able to copy and paste your answers from a Word document.
Problem 1: Using the Marginal Approach
Suppose your company runs a shuttle business of a hotel to and from the local airport. The costs for
different customer loads are:
1 customer: $30
2 customers: $32
3 customers: $35
4 customers: $38
5 customers: $42
6 customers: $48
7 customers: $57
8 customers: $68.
1. What are your marginal costs for each customer load level? (Chart)
2. If you are compensated $10 per ride, what customer load would you choose? (Essay)
Problem 2: Elasticity and Pricing
Suppose the number of firms you compete with has recently increased. You estimated that as a result of
the increased competition, the demand elasticity has increased from –2 to –3, i.e., you face more elastic
demand. You are currently charging $10 for your product. What is the price that you should charge, if
demand elasticity is -3?
(Essay)
Problem 3: Price Discrimination
An amusement park, whose customer set is made up of two markets, adults and children, has developed
demand schedules as follows:
Price ($)
Quantity
Adults Children
5 15 20
6 14 18
7 13 16
8 12 14
9 11 12
10 10 10
11 9 8
12 8 6
13 7 4
14 6 2
The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is
average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.
Calculate the price, quantity, and profit if:
1. The amusement park charges a different price for adults. (Chart)
2. The amusement park charges a different price for children. (Chart)
3. The amusement park charges the same price in the two markets combined. (Chart)
4. Explain the difference in the profit realized under the two situations. (Essay)
Problem 4: Bundling
Time Warner could offer the History Channel (H) and Showtime (S) individually or as a bundle of both.
Suppose the reservation prices of customers 1 and 2 (the highest prices they are willing to pay) are
presented in the boxes below.
The cost to Time Warner is $1 per customer for licensing fees.
Preferences
Showtime History Chanel
Customer 1 9 2
Customer 2 3 8
1. Should Time Warner bundle or sell separately? (Essay)
2. Should Time Warner bundle if everyone likes Showtime more than the History Channel, i.e.,
preferences are positively correlated. (Essay)
3. Suppose Time Warner could sell Showtime for $9, and History channel for $8, while making
Showtime-History bundle available for $13. Should it use mixed bundling. i.e., sells products both
separately and as a bundle? (Essay)
ECO 550 – Managerial Economics a.
Page 1 of 4 NIZWA COLLEGE OF TECHNOLOGY BUSINESS .docxhoney690131
Page 1 of 4
NIZWA COLLEGE OF TECHNOLOGY
BUSINESS STUDIES DEPARTMENT
SEMESTER -2 / ACADEMIC YEAR
2019-2020
FINAL EXAM (ASSIGNMENT)
COURSE CODE BAHR3106
COURSE NAME Training and Development
LEVEL Advance Diploma
TUTOR(S) Sangeetha TR
SECTION(S) 2
DURATION:
DATE TIME
START 21 May 2020 9:00AM
END 23 May 2020 8:00AM
MARKS BREAK UP:
No. of Questions Marks for Each Question
1 25
2 15
3 10
TOTAL MARKS 50
INSTRUCTIONS:
1) The Final Assignment will be available in Moodle at 9:00 am on the date of
examination.
2) This is an open resource examination; there are (04) pages. Students are allowed to
refer any digital materials (Internet, Proquest, Masader, and OER) with proper
referencing and citation for each answers.
3) Students has to answer the questions typewritten in the word (.docx) format.
Figures / Diagrams, equations and solving of problems can be written by hand and
added to the document as a picture/image.
4) Save the assignment file using the student ID & Course code.[ Eg : 22s1234 –
EECPxxxx]
5) Students should submit the answers through the turnitin link provided in moodle
page. If any problem occurs, send it to the staff email [[email protected]]
6) Students are encouraged to upload the answers in the moodle at least two hours
before the deadline to avoid any technical issues.
7) In case of any technical problem in opening or submitting your assignment please
contact your course tutor through email and copy the Department Head
Page 2 of 4
8) Any form of cheating is punishable. Students involved in cheating will be treated
according to the Plagiarism and Academic Integrity Policies.
9) Students are advised to write the answers in their own words. Based on the
plagiarism policy and the department approved similarity level, the marks will be
deducted for the plagiarized [Copied] answers.
10) Students should complete their assignment within the given time. Assignments
submitted after the deadline will be marked 0.
ACADEMIC INTEGRITY & PLAGIARISM POLICY:
The student should be ready to prove the authenticity of the work done. If any form of
plagiarism/reproduction of answers are discovered, student will be awarded zero marks.
DECLARATION:
I declare that the Final Exam (assignment) submitted is original and acknowledge that I am
aware of the NCT’s Integrity and Plagiarism Policies (January 2011) mentioned in moodle, and
the disciplinary guidelines and procedures applicable to breaches of such policy and
regulations.
I AGREE TO THE TERMS AND CONDITIONS:
STUDENT NAME
STUDENT ID
DATE OF SUBMISSION
Page 3 of 4
Question No 1 (25 Marks)
Honest Bank, is one among the popular financial institutions in Oman. Honest Bank’s operating
strategy distinguishes it from other financial and banking companies. Thi.
Page 1 of 4 NIZWA COLLEGE OF TECHNOLOGY BUSINESS .docxaman341480
Page 1 of 4
NIZWA COLLEGE OF TECHNOLOGY
BUSINESS STUDIES DEPARTMENT
SEMESTER -2 / ACADEMIC YEAR
2019-2020
FINAL EXAM (ASSIGNMENT)
COURSE CODE BAHR3106
COURSE NAME Training and Development
LEVEL Advance Diploma
TUTOR(S) Sangeetha TR
SECTION(S) 2
DURATION:
DATE TIME
START 21 May 2020 9:00AM
END 23 May 2020 8:00AM
MARKS BREAK UP:
No. of Questions Marks for Each Question
1 25
2 15
3 10
TOTAL MARKS 50
INSTRUCTIONS:
1) The Final Assignment will be available in Moodle at 9:00 am on the date of
examination.
2) This is an open resource examination; there are (04) pages. Students are allowed to
refer any digital materials (Internet, Proquest, Masader, and OER) with proper
referencing and citation for each answers.
3) Students has to answer the questions typewritten in the word (.docx) format.
Figures / Diagrams, equations and solving of problems can be written by hand and
added to the document as a picture/image.
4) Save the assignment file using the student ID & Course code.[ Eg : 22s1234 –
EECPxxxx]
5) Students should submit the answers through the turnitin link provided in moodle
page. If any problem occurs, send it to the staff email [[email protected]]
6) Students are encouraged to upload the answers in the moodle at least two hours
before the deadline to avoid any technical issues.
7) In case of any technical problem in opening or submitting your assignment please
contact your course tutor through email and copy the Department Head
Page 2 of 4
8) Any form of cheating is punishable. Students involved in cheating will be treated
according to the Plagiarism and Academic Integrity Policies.
9) Students are advised to write the answers in their own words. Based on the
plagiarism policy and the department approved similarity level, the marks will be
deducted for the plagiarized [Copied] answers.
10) Students should complete their assignment within the given time. Assignments
submitted after the deadline will be marked 0.
ACADEMIC INTEGRITY & PLAGIARISM POLICY:
The student should be ready to prove the authenticity of the work done. If any form of
plagiarism/reproduction of answers are discovered, student will be awarded zero marks.
DECLARATION:
I declare that the Final Exam (assignment) submitted is original and acknowledge that I am
aware of the NCT’s Integrity and Plagiarism Policies (January 2011) mentioned in moodle, and
the disciplinary guidelines and procedures applicable to breaches of such policy and
regulations.
I AGREE TO THE TERMS AND CONDITIONS:
STUDENT NAME
STUDENT ID
DATE OF SUBMISSION
Page 3 of 4
Question No 1 (25 Marks)
Honest Bank, is one among the popular financial institutions in Oman. Honest Bank’s operating
strategy distinguishes it from other financial and banking companies. Thi.
3. Mark Scheme – General Certificate of Education (A-level) Accounting – ACCN4 – January 2012
3
January 2012 ACCN4
MARK SCHEME
INSTRUCTIONS TO EXAMINERS
You should remember that your marking standards should reflect the levels of performance
of students, mainly 17 years old, writing under examination conditions.
Positive Marking
You should be positive in your marking, giving credit for what is there rather than being too
conscious of what is not. Do not deduct marks for irrelevant or incorrect answers as students
penalise themselves in terms of the time they have spent.
Mark Range
You should use the whole mark range available in the mark scheme. Where the student’s
response to a question is such that the mark scheme permits full marks to be awarded, full
marks must be given. A perfect answer is not required. Conversely, if the student’s answer
does not deserve credit, then no marks should be given.
Alternative Answers/Layout
The answers given in the mark scheme are not exhaustive and other answers may be valid.
If this occurs, examiners should refer to their Team Leader for guidance. Similarly, students
may set out their accounts in either a vertical or horizontal format. Both methods are
acceptable.
Own Figure Rule
In cases where students are required to make calculations, arithmetic errors can be made so
that the final or intermediate stages are incorrect. To avoid a student being penalised
repeatedly for an initial error, students can be awarded marks where they have used the
correct method with their own (incorrect) figures. Examiners are asked to annotate a script
with OF where marks have been allocated on this basis. OF always makes the assumption
that there are no extraneous items. Similarly, OF marks can be awarded where students
make correct conclusions or inferences from their incorrect calculations.
4. Mark Scheme – General Certificate of Education (A-level) Accounting – ACCN4 – January 2012
4
Assessment Objectives (AOs)
The Assessment Objectives are common to AS and A Level. The assessment units will
assess the following Assessment Objectives in the context of the content and skills set out in
Section 3 (Subject Content) of the specification.
AO1: Knowledge and Understanding Demonstrate knowledge and understanding of
accounting principles, concepts and
techniques.
AO2: Application Select and apply knowledge and understanding
of accounting principles, concepts and
techniques to familiar and unfamiliar situations.
AO3: Analysis and Evaluation Order, interpret and analyse accounting
information in an appropriate format. Evaluate
accounting information, taking into
consideration internal and external factors to
make reasoned judgements, decisions and
recommendations, and assess alternative
courses of action using an appropriate form and
style of writing.
Quality of Written Communication
(QWC)
In GCE specifications which require students to
produce written material in English, students
must:
ensure that text is legible and that spelling,
punctuation and grammar are accurate so
that meaning is clear
select and use a form and style of writing
appropriate to purpose and to complex
subject matter
organise information clearly and coherently,
using specialist vocabulary when
appropriate.
In this specification, QWC will be assessed in
all units. On each paper, two of the marks for
prose answers will be allocated to ‘quality of
written communication’, and two of the marks
for numerical answers will be allocated to
‘quality of presentation’. The sub questions
concerned will be identified on the question
papers.
5. Mark Scheme – General Certificate of Education (A-level) Accounting – ACCN4 – January 2012
5
Task 1 Total for this task: 8 marks
(2 100 + 1 500)/600 = £6 (1) marginal cost
2 400/600 = £4 (1) fixed cost per unit
Full cost = £10 (1) OF
Selling price £10 x 1.2 = £12 (1) OF 4 marks
Break even is:
(i) 2 400 (1)/(12 – 6) (1) OF = 400 (1) OF scarves
(ii) 400 x £12 = £4 800 (1) OF revenue
4 marks
02 Using the selling price you calculated in 0 1, calculate the:
(i) number of scarves that Keisa needs to make to break even
(ii) revenue at the break-even point. (4 marks)
01 Calculate the selling price per scarf. (4 marks)
6. Mark Scheme – General Certificate of Education (A-level) Accounting – ACCN4 – January 2012
6
Task 2 Total for this task: 30 marks
Manufacturing account for Locksum Ltd for the year ended
31 October 2011
£ £
Opening inventories of raw materials 12 000
Purchases of raw materials 64 500
Carriage inwards 6 100*
70 600
Closing inventories (stock) of raw materials (16 000)
Cost of raw materials consumed 66 600 (1) OF
Royalties 7 000 (1)
Direct wages W1 16 830 (2) OF
Prime cost 90 430 (1) OF
Indirect wages W1 39 270 (1) OF
Factory overheads 24 200*
Insurance W2 9 900 (1)
Machinery depreciation 60 000 (1)
Rent W3 11 800 (2) OF
145 170
235 600
Opening work in progress 6 400
Closing work in progress 4 200
2 200 (1)
Cost of manufacture 237 800 (1) OF
*(1) for both carriage inwards and factory overheads.
W1
Wages
(84 300 + 9 200) x 60% = 56 100 (1)
56 100 x 30% = 16 830 (1) OF direct
56 100 x 70% = 39 270 (1) OF indirect
03 Prepare the manufacturing account for Locksum Ltd for the year ended 31 October
2011. (14 marks)
(this includes 1 mark for quality of presentation)
7. Mark Scheme – General Certificate of Education (A-level) Accounting – ACCN4 – January 2012
7
W2
Insurance
13 200 x 75% = 9 900 (1)
W3
Rent
(18 900 – 1 200 (1)) x 2/3 = 11 800 (1) OF 13 marks
Plus 1 mark for quality of presentation
Total: 14 marks
To:
From:
Date
Subject
The current cost per lock is 237 800/400 000 = 59.45p per lock (1) OF.
If the relocation takes place then the cost per lock is reduced by 19.45p (1) OF each.
This is a total saving on current production levels of £77 800 per year (1) OF (ie £237 800
less £160 000). It would take approximately 19 years (1) OF to cover the initial costs of the
relocation (1).
Shareholders will be happy in the long run as dividend per share could rise with this saving
(1).
However, there is a financial cost of relocation in the short run (1). How will this be financed
in the short run? (1) If the money has to be borrowed, what is the interest payable (1), which
will reduce profits before dividends (1), or is another issue of shares required? (1) which will
reduce the earnings per share (1). Any cost of training in Eastern Europe or increased
distribution costs? (1) What is the cost of returns if quality is not maintained? (1) Cost of
redundancies (1) cost of transport (1) will reduce profits.
There may be an effect on the reputation of the business if they relocate? (1), especially if
there are considerable redundancies and the factory is not sold as a going concern (1). This
may reduce the market value of the shares (1). Can the quality of the locks be assured (1) or
the quality of the workforce? (1) Possibility of transport delay/reliability (1) language barriers
(1) eastern European legislation (1).
Overall maximum for financial and non-financial factors: 12 marks
Recommendation
Clear recommendation (1) with justification (1). Max 2 marks for recommendation
Overall Max 14 marks
Quality of written communication (QWC) awarded for well structured prose responses and
accurate spelling punctuation and grammar:
for 2 marks: The student must have no more than 3 spelling, punctuation or grammar
errors and have provided suitable report headings (to, from, date and subject)
for 1 mark: The student will have 4 or more spelling, punctuation or grammar errors, but
the meaning is clear and some attempt at using report headings
for 0 marks: The student response is limited and/or difficult to understand
a repeated spelling punctuation or grammar error only counts as one mistake. 2 marks
Total: 16 marks
04 Write a report to the directors of Locksum Ltd recommending whether or not the
manufacturing process should be moved to eastern Europe. Consider both the
financial effects and the non-financial effects from the viewpoint of the
shareholders. (16 marks)
(this includes 2 marks for quality of written communication)
8. Mark Scheme – General Certificate of Education (A-level) Accounting – ACCN4 – January 2012
8
Task 3 Total for this task: 31 marks
Year Net cash flow Discount
factor
Present
value
£ £
0 (300 000)
W1
1 (300 000.00) (1)
1 90 000 0.926 83 340.00 (1) OF
2 116 400 0.857 99 754.80 (1) OF
3 147 080 0.794 116 781.52 (1) OF
Net present value (123.68) (1) OF
Variable costs (0.25 x 16) + (0.5 x 28) = 18 (2) CF
Contribution 40 – 18 = 22 (1) CF
W1
Net cash flows
Year 1 (6 000 (1) x 22) = 132 000 – (2 000) (1) = 130 000 – 40 000* = 90 000 (1) OF
Year 2 (7 200 (1) x 22) = 158 400 – (2 000) (1) = 156 400 – 40 000* = 116 400 (1) OF
Year 3 (8 640 (1) x 22) = 190 080 – (3 000) (1) = 187 080 – 40 000*= 147 080 (1) OF
*1 mark for deducting fixed costs £40 000 in each calculation
18 marks
(i) Material price variance 2 600 (16 – 12) = £10 400 (1) favourable (1)
(ii) Material usage variance 16 (2 600 – 1 550) = £16 800 (1) adverse (1)
(iii) Labour rate variance 3 000 (28 – 20) = £24 000 (1) favourable (1)
(iv) Labour efficiency variance 28 (3 100 – 3 000) = £2 800 (1) favourable (1) 8 marks
06 Calculate the following sub-variances:
(i) direct material price variance
(ii) direct material usage variance
(iii) direct labour rate variance
(iv) direct labour efficiency variance. (8 marks)
05 Calculate the net present value of the new machine. (18 marks)
9. Mark Scheme – General Certificate of Education (A-level) Accounting – ACCN4 – January 2012
9
(i) The variance arose because the staff were more highly motivated (1) due to improved
management and better working conditions (1).
Productivity improvements due to training and development of the workforce (1).
This may be because of better machinery so the workforce could be more
efficient (1).
(ii) The labour efficiency variance will increase profit (1) OF.
5 marks
07 Explain:
(i) two possible reasons for the labour efficiency variance
(ii) the effect of the labour efficiency variance on the budgeted profit for the first
year. (5 marks)
10. Mark Scheme – General Certificate of Education (A-level) Accounting – ACCN4 – January 2012
10
Task 4 Total for this task: 21 marks
Leather Sports Flak
£ £ £
Selling price 114 98 72
Variable cost 54 48 30
Contribution 60 (1) 50 (1) 42 (1)
Labour hours 1.5 2 1
Contribution per labour hour 40 (1) OF 25 (1) OF 42 (1) OF
6 marks
Optimum production plan
Max production of Flak first, then Leather and then Sports.
Units Hours
Flak 9 000 (2) 9 000
Leather 16 000 (2) 24 000
4 marks
There is no production of the Sports style of jacket (1) OF and demand for the Leather style
is not fully satisfied (1) OF.
Customers may therefore be lost to competitors (1) and market share may be reduced (1).
The Sports style may be unique to Calvin Clobber Ltd (1).
The demand for the other styles may depend on the purchase of the Sports style (1) so they
may lose customers (1).
Tastes may change (1) so demand changes.
All information is estimated (1) so may be inaccurate.
Max 4 marks
10 Explain briefly the limitations of the production plan calculated in 0 9. (4 marks)
09 Calculate the optimum production plan which Calvin Clobber Ltd could introduce
that, given the limited number of labour hours available, would maximise profit.
(4 marks)
08 Calculate the contribution per labour hour for each jacket. (6 marks)
11. Mark Scheme – General Certificate of Education (A-level) Accounting – ACCN4 – January 2012
11
Extract from Labour budget for periods 10–13 for Calvin Clobber Ltd
QWC 1
for the
three
elements
Period 10 11 12 13
Staff W1 15 15 15 15 (1) OF row
Hours (1) (40 x 4 x 15) 2 400 3 000 3 000 3 000 (1) OF (50 x 4 x 15)
Workings
W1
Hours per year per employee
40 x 4 x 10 periods (1) + 50 x 4 x 3 periods (1) = 2 200 (1) OF
ie 1 600 (1) + 600 (1) = 2 200 (1) OF
Maximum number of employee with hours available
33 000/2 200 = 15
6 marks
Quality of presentation
1 mark for layout of budget showing number of staff, periods of time and total hours.
1 mark
Total 7 marks
11 Prepare an extract from the labour budget for each of the periods 10–13, showing
the maximum number of employees and the total hours worked per period.(7 marks)
(this includes 1 mark for quality of presentation)