這是我們在2017年為英國謝菲爾德大學的客戶代寫的一篇範文essay，是一篇management accounting的case study，以下是我們節選的分享片段。
i. The difference in dollar amount of Gross Profit over the two years presented.
The reported gross profits in both two years are 36,000. Thus, there is no difference in amount of gross profit over the two years.
ii. Determine the Gross Profit % for each year.
| Current Year | Previous Year | |
| Gross Profit | 36,000 | 36,000 |
| Net Sales | 100,000 | 90,000 |
| GP % | 36% | 40% |
iii. Based on Gross Profit % above, which year is more profitable?
Gross profit in current year is 36%, which is lower than that in previous year. Therefore, previous year is more profitable from the perspective of gross profit percentage.
iv. Based on your knowledge of traditional cost accounting system and related analytical tools: 1. Identify for each of the presented years, whether the variances used to adjust the standard Cost of Sales are favorable or unfavorable. 2. Provide a brief explanation of the noted change in variances above over the presented years.
| Current Year Amount: F/U* | Previous Year Amount: F/U | Explanation | ||
| 1 | Material Price Variance
| (3,000) F | 10,000 U | The actual material price per unit in the current year has been better controlled, which is lower than the standard price per unit. |
| 2 | Material Usage Variance
| (2,000) F | 5,000 U | The actual quantity per unit consumed in the current year is lower than the standard quantity. It means that the company performs better in material usage control in the current year. |
| 3 | Labour Efficiency Variance
| 7,000 U | (8,000) F | The actual hours per unit are higher than the standard hours per unit in the current year. Labour efficiency has decreased. |
| 4 | Labour Rate Variance
| (2,000) F | 9,000 U | The actual rate per hour paid to labour is lower than the standard. It saves the current year’s labour cost. |
| 5 | Overhead Volume Variance
| 2,000 U | 2,000 U | Both two years perform the same unfavourable overhead volume variance. Both two years’ actual units produced are less than the budgeted. |
| Overhead Spending Variance
| (2,000) F | 8,000 U | The current year’s actual variable overhead per unit is less than the standard. A better management over variable overhead is achieved in the current year. | |
| 7 | Overhead Efficiency Variance
| 16,000 U | (17,000) F | The current year has used more hours then the standard, but the previous year is on the contrary. It indicates inefficient use of overheads in the current year |
*F: Favourable variance, U: Unfavourable variance
a. Lean Income Statement (Table 2).
i. Prepare a vertical analysis by calculating the percentage of each component of Cost of sales to Net Sales. (Round to the hundredth, two decimals).
| Current Year | % | Previous Year | % | |
| Net Sales | 100,000 | 100% | 90,000 | 100% |
| Cost of Sales: | ||||
| Purchases | 25,300 | 25.3% | 34,900 | 38.78% |
| Inventory Material: (increase)/decrease | 6,000 | 6% | (6,000) | (6.67%) |
| Total Material Costs | 31,300 | 31.3% | 28,900 | 32.11% |
| Processing Costs: | ||||
| Factory Wages | 11,000 | 11% | 11,500 | 12.78% |
| Factory Salaries | 2,100 | 2.1% | 2,000 | 2.22% |
| Factory Benefits | 7,000 | 7% | 5,000 | 5.56% |
| Services and Supplies | 2,200 | 2.2% | 2,500 | 2.78% |
| Equipment and Depreciation | 2,000 | 2% | 1,900 | 2.11% |
| Scrap | 2,000 | 2% | 4,000 | 4.44% |
| Total Processing Costs | 26,300 | 26.3% | 26,900 | 29.89% |
| Occupancy Costs: | ||||
| Building Depreciation | 200 | 0.2% | 200 | 0.22% |
| Building Services | 2,200 | 2.2% | 2,000 | 2.22% |
| Total Occupancy Costs | 2,400 | 2.4% | 2,200 | 2.44% |
| Total Manufacturing Costs: | 60,000 | 60% | 58,000 | 64.44% |
| Inventory/Labor, Overhead: (Increase)/Decrease | 4,000 | 4% | (4,000) | (4.44%) |
| Cost of Sales | 64,000 | 64% | 54,000 | 60% |
| Gross profit | 36,000 | 36% | 36,000 | 40% |
ii. Calculate the increase or decrease (as a percent of Net sales) for the following components below and comment on their changes.
| Current Year % | Previous Year % | Increase/(Decrease) % | Explanation and interpretation of changes | |
| Inventory Material: (increase)/decrease
| 6% | (6.67%) | 12.67% | Inventory material increases in the current year. It affects the company’s profitability. The company needs to control its inventory material cost. |
| Total Processing Costs
| 26.3% | 29.89% | (3.59%) | The proportion of total processing costs to the net sales has decreased by 3.59%. The saved processing costs positively affect profitability. |
| Total Occupancy Costs
| 2.4% | 2,44% | (0.04%) | The proportion of total processing costs to the net sales has decreased by 0.04%. It enhances the profitability. |
| Inventory/Labor, Overhead: (Increase)/Decrease
| 4% | (4.44%) | 8.44% | The proportion of overhead to the net sales has increased by 8.44%. This change hinders the profitability largely. |
| Cost of Sales
| 64% | 60% | 4% | The proportion of costs of sales to net sales has increased by 4%, indicating a weaker profitability in the current year. |
| Gross profit
| 36% | 40% | (4%) | The gross profitability in the current year has decreased by 4%. It means that the company’s profitability becomes weaker. |
iii. In your opinion and based on your analysis above, which year demonstrates a better performance?(Max. 50 words)
The previous year has demonstrated a better performance. Although the current year’s sales increase by 10,000, the increasing revenues have not generated extra profits as two years report the same profit. A worse control over costs contributes to the result largely. It indicates a weaker profitability in the current year.
b. Which income statement presentation provides a better basis for managerial performance assessment: Lean or Traditional? Justify in terms of profitability and operational efficiency (Waste reduction). (Max. 50 words)
Lean costing system is better for managerial performance. The current year’s profitability becomes weaker. Through the lean income statement, it can be seen that processing costs and occupancy costs are saved but inventory material and overheads affects the operating efficiency. Thus, controlling inventory material and overheads are critical for profitability.
這篇essay既有案例分析的文字，也有計算的題目，對寫作的要求很高，對知識的掌握程度也同時有很高的要求，和大家分享一下,有需要會計論文代寫的同學可以聯繫我們.