sqahnd财政预算34.docVIP

Contents 1.0 Introduction - 2 - 2.0 The flexed budget - 2 - 3.0 Calculate the Materials variances, Labour variances and the Total overhead. - 2 - 3.1 Direct the materials variances , labour variances and the total overhead. - 2 - 3.2 Variance analysis. - 3 - 4.0 The recommendations for management (variances). - 4 - 5.0 Using four different methods to evaluate the financial. - 5 - 5.1 Identify the accounting rate of return. - 5 - 5.2 Identify the payback. - 5 - 5.3 Identify the Net present value. - 5 - 5.4 Identify the Internal rate of return. - 6 - 6.0 Recommendations for investment decision. - 6 - 7.0 Conclusion - 7 - 8.0 Appendices - 7 - 1.0 Introduction This report will divided into two parts. Part A and Part B. In Part A,First of all, I will prepare a flexed budget in line with actual activity. Second, this will including the Materials variances, Labour variances and total overhead. At the same time, I will identify a minimum of one possible cause of the each variance. Finally, according to data analysis, there have been some recommendations to management of Matteck PLC. In Part B, It will have four different ways to evaluate financial performance and give recommendations for Matteck PLC. These ways are ARR ,Payback, NPV and IRR. Part A 2.0 The flexed budget For Flex budged of Matteck PLC, we can see the Appendix 1. 3.0 Calculate the Materials variances, Labour variances and the Total overhead. 3.1 Direct the materials variances , labour variances and the total overhead. This section shows the Appendix 2. 3.2 Variance analysis. Material price variance: The material price variance is ?32,000(F). According to the data analysis, it is ?2/kg less expensive than planned. The possible reasons can be divided into three points: first, they could replace raw materials, using a lower - grade material. Second, the supplier to provide some discount for this batch of raw materials. Finally, learn from the case, the company has managed to locate new material