Accounting 9706/31 May June 2018 | Cambridge AS Level Past Papers With Mark Scheme

1. Manufacturing account and transfer pricing: Calculation of manufacturing account, impact of changes in transfer price on profit, and advising on price adjustments considering competitor actions and market conditions.
2. Statement of changes in equity and financing decisions: Preparation of statement of changes in equity, analysis of share issues (rights and bonus), evaluation of financing options for factory purchase, and impact of financing choices on shareholder value.
3. Audit findings and accounting treatments: Role of external auditor, correct treatment of human asset, inventory valuation adjustments for obsolete goods, and revised profit calculation based on audit findings.
4. Social Club financial management: Income and expenditure account preparation, balance sheet formulation, analysis of pricing strategies for services, and differences between club and limited company financial structures.
5. Budgetary control and inventory management: Preparation of production and purchases budgets, advantages and disadvantages of budgetary control systems, evaluation of increased storage capacity, and impact on holding costs.
6. Costing methods and profitability analysis: Calculation of total production costs, comparison of traditional versus activity-based costing, recalculating costs and prices with adjusted mark-ups, and advising on changes in profit margins considering customer acceptance and profitability.