Accounting 9706,42 Oct Nov 2024 | Cambridge AS - A Level Past Papers With Mark Scheme

1. Variance Analysis & Budgeting | Reasons for conducting variance analysis, calculation of fixed overhead capacity variance, preparation of a flexible budget statement, and reconciliation of flexible budget profit with actual profit.

2. Cost & Profit Analysis | Explanation of favorable direct labor variances, analysis of direct labor cost components, and impact of material price increases on profitability.

3. Investment Appraisal | Calculation of net present value (NPV), internal rate of return (IRR), and accounting rate of return (ARR) for investment decisions.

4. Risk & Uncertainty in Revenue Projections | Discussion on the impact of uncertain sales revenue estimates on investment decisions, supported by financial calculations.

5. Strategic Financial Decision-Making | Evaluation of two strategic options: modifying the existing product to reduce material costs or reducing advertising expenses to maintain profitability.

6. Cash Budgeting & Future Planning | Advising on whether to continue manufacturing Product A with promotional support or to invest in developing a new Product B for future market expansion.