Final exam solutions 2019/2020 PDF

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BBA course, Management control final exam solutions for the academic year of 2019-2020....

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SOLUTIONS - Mock final exam

Exercise 1

b. Actual price/kg: 27,050e/11,224kgs = 2,41 e/kgs

Exercise 2 a) Amsterdam: 23.75 %, The Hague: 36 %, Groningen: 35 %. b) No, it will not be accepted. New ROI: (70,000+15,000) / (200,000 + 50,000) = 34%, which is lower than 35 %. Alternative calculation: 15,000/50,000 = 30%, which is lower than the current ROI of 35%, so it will not be accepted by the restaurant in Groningen. c) RESIDUAL INCOME = INCOME – DESIRED ROI * OPERATING ASSETS RESIDUAL INCOME = 15,000 – 25% * 50,000 = € 2,500

Exercise 3

Actual results

Budgeted price

Flexible budget

13.07 €/LH

14 €/LH

14 €/LH

3.39 LH/cake

2,104 LH / 620 cakes= 3,39

3 LH/cake

620 cakes

620 cakes

620 cakes

27,500 €

29,456 €

26,040 €

X * 2104 LH = 27,500 € X=13.07 Flexible budget variance = 27,500 – 26,040 = 1,460 € (U) Efficiency variance = 29,456 – 26,040 = 3,416 € (U) Price variance = 27,500 – 29,456 = 1,956€ (F)

Exercise 4

Exercise 5

Question 6 I would suggest you to take a concrete example between 2 countries with 2 different tax rates to answer the question of transfer prices (cf oil company’s ex. In topic 4) Question 7 You can take the example of a company with a high risk of pollution in its plants and which can cause a health risk for its employees. This company will save a certain amount of money to prevent a risk of legal action by an employee who has contracted an illness. This a type of contingent liability. Question 8 Employee turnover per year Number of days of absences Anonymous survey of employee satisfaction...