Accounting 9706/03 Oct Nov 2002 | Cambridge AS Level Past Papers With Mark Scheme

1. Share capital and redemption: Understanding of capital types, effects of redeeming preference shares at a premium on reserves, and implications on capital redemption reserve and retained profit.
2. Goodwill and share premium: Calculation of share premium account entries during business acquisitions, valuation of goodwill, and issuance of shares at a premium for settling purchase price.
3. Dividend yield and financial ratios: Calculation of dividend cover, analysis of net dividend yield, and determination of earnings per share (EPS) for evaluating financial performance.
4. Investment appraisal and NPV: Use of net present value (NPV) method for investment appraisal, calculation of internal rate of return (IRR) based on varying discount factors, and assessment of capital investment viability.
5. Production planning and limiting factors: Prioritization of products based on contribution per labour hour, determination of production quantities to meet sales targets, and identification of limiting factors in production resources.
6. Budgeting and cost variance analysis: Preparation of flexed budget based on actual production, calculation of direct labour rate variance, and determination of standard selling price for products based on desired profit margin on factory cost.