Section 1 – A. Analysis of Annual Report The group member should obtain the annual report of a company (local company).
For the obtained data, compute the following for the two most recent years: Required:
• Cost of sales as a percentage of sales
. • General and administrative expenses as a percentage of sales.
• Net income as a percentage of sales. B. Operation Costing Operation costing combines characteristics of both job-order and process costing. It is used in those situations where the products have some common characteristics and some individual characteristics. Example of industries where operation costing maybe appropriate include shoes, clothing, jewelry and semiconductors. Required: Select one of the above products and search how the product is made. Construct a flowchart of the production process. Indicate which steps in the production process would use job-order costing and which steps would use process costing. Section 2 – Capital Budgets In recent years, your university has probably undertaken a capital budgeting project such as building or renovating a facility. Investigate one of these capital budgeting projects. You may get the information from your university’s accounting or finance office. Required: 1. Determine the total cost of the project and the source of funds for the project. 2. Did the cost of the project stay within budget? 3. If the present value method was used, review the calculations. Do you agree with the calculations and methods used? 4. If the present value was not used to evaluate the project, estimate the project’s net present value. 5. Evaluate the capital budgeting procedures that were actually used by your university. Requirements: • The group formation form (attached on SUMLS) must be submitted to your respective lecturer by week 4. Members must be from the same lecture section. • The assignment should be type-written (1.5 spacing, Times New Roman, 12 font size). • The write-up should also include table of contents, references and appendices • Submission dateline: 13th December 2018 by 12 noon. Any late submission will not be accepted. • Hardcopy and softcopy of the assignment is to be submitted to your respective lecturer by hand. REMINDERS Plagiarism • Plagiarism is a serious offence. • Plagiarism include the following behaviors (but not limited to): o copy another student’s work, o fail to properly cite other people’s work or give proper credit to the original source, (The source of data should be given). o hire or ask another individual to complete the assignment for you, • The lecturer has the rights not to accept submission of plagiarized or duplicated work. Group work • Each group member must actively participate in the completion of the assignment. Free-riding is unethical and extremely unfair to fellow group members. • Each group member is expected to keep the contact numbers and e-mail addresses of the other members of the group. • The group leader has the responsibility to ensure that all group members play a part in the completion of the assignment. The group leader is also responsible to ensure that all members’ names are written on the final submission. • It is the responsibility of each group member to ensure that the final submission is complete and of the acceptable standard. Should any errors or omission occurred in the final submission, each group member is held accountable for negligence – in other words, failure to perform their responsibilities as expected.