Accounting 9706/31 Oct Nov 2017 | Cambridge AS Level Past Papers With Mark Scheme

1. Manufacturing account and inventory valuation: Preparation of manufacturing account, gross profit calculation, finished goods inventory valuation, and analysis of the impact of external supply on production decisions.
2. Non-profit organization financial management: Differences between capital of a sole trader and accumulated fund of a club, preparation of shop income statement, income and expenditure account, and analysis of current assets and liabilities.
3. Financial performance and investment analysis: Calculation of key financial ratios (earnings per share, price earnings ratio, dividend yield, dividend cover), comparison of performance over two years, and evaluation of investment decisions.
4. Partnership formation and financial adjustments: Capital account preparation, transfer of assets and liabilities to partnership, evaluation of merger benefits, and discussion of advantages of incorporating a business.
5. Costing and variance analysis: Calculation of budgeted profit, impact of changes in sales price and volume, variance analysis (sales price, volume, materials price, labour rate), and assessment of changes in costing approach.
6. Overhead apportionment and product profitability: Apportionment of overheads based on sales value, analysis of delivery and order processing costs, revised profit per unit calculation, and discussion on adopting a new method of overhead apportionment.