PERFORMANCE MANAGEMENT - Loyal Academy

(a) NGUZO Ltd is specialized in purchase and sale of different electronics products from abroad. The company has experienced increased market share and decided to increase its stock in order to capture more customers. The company has recently ordered and received a large consignment of products of various types from one of its suppliers in Asia for a total cost of TZS.80,000,000/=. The company storekeeper has sorted the products into the following categories.

Question

PRODUCT Units Selling ...

INTERMEDIATE LEVEL, NBAA, PERFORMANCE MANAGEMENT 1 year 0 Answers 5 views Enlightened

(a) PAMELA Company Limited processes materials into finished products. After process one, two main products PAM and ELA are produced. The production processes allow for 10% normal loss at process one and 5% for each product if it is to be processed further. The scrap at process one can be sold for TZS.13,200 per unit. The standard prices of the products are as follows; PAM to be sold at split off point TZS.34,000 per unit but can be sold for TZS.56,000 per unit after further processing. A unit of ELA can also be sold for TZS.32,000 at split off point or TZS.50,000 after further processing. Further processing costs are; PAM; direct materials TZS.8,000 per unit and conversion TZS.7,000 per unit. The materials and conversion costs per unit for ELA are TZS.10,000 and TZS.8,000 respectively.

Question

In the month of August 2018, 6,000 units were processed through process one at the following costs; direct materials TZS. 40,000 conversion TZS.32,000. The output at the end of process one were 3,000 units for PAM and 2,000 units for ...

INTERMEDIATE LEVEL, NBAA, PERFORMANCE MANAGEMENT 1 year 0 Answers 6 views Enlightened

(a) (i) Briefly explain what you understand by the term ‘transfer pricing’.

Question

(ii) Explain how the existence of transfer pricing can distort performance appraisal within a divisionalised organization structure. (b) Explain four methods which are used to determine transfer prices. (c) OMEGA Ltd has two divisions PRODUCTION and FINISHING. Production division manufactures product Alpha-200 ...

INTERMEDIATE LEVEL, NBAA, PERFORMANCE MANAGEMENT 1 year 0 Answers 5 views Enlightened

The Selefa Ltd is a Company specializing in the provision of CCTV Camera systems for commercial clients. There are two parts of the business: installing CCTV Camera systems in businesses, either first time installations or replacement installations and supporting the CCTV Camera systems with annually renewable maintenance contracts. Selefa Ltd has been approached by a potential customer, Mwangaza Co. who wants to install a CCTV camera system in its new offices. Although the work will not earn a big profit, Selefa Ltd is hopeful of future business in the form of replacement systems and support contracts for Mwangaza Co. Selefa Ltd, is therefore keen to quote a competitive price for the job. The following information should be considered:

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(i) One of the Company’s salesmen has already visited Mwangaza Co. to give them a demonstration of the new system together with a complementary lunch, the costs of which totaled TZS.400,000. (ii) The installation is expected to take one week to ...

INTERMEDIATE LEVEL, NBAA, PERFORMANCE MANAGEMENT 1 year 0 Answers 5 views Enlightened

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