Coursework assignment Business analysis has present the content: the implementation of direct material cost in July, performance of the production manager for the month of July, form of material cost analyzing report, analyze the profitability and liquidity of the company in 2021 by benchmarking the textile industry index, . | National Economics University School of Accounting and Auditing COURSEWORK ASSIGNMENT BUSINESS ANALYSIS Name Nguyen Dang Duy Phuc Class Accounting CFAB K61 ID 11196416 Lecturer LE NGOC THANG April 2022 Part A 1 The implementation of direct material cost in July Actual Materi Actual Materi Produc materi al produc al cost Actual tion al cost usage tion per m2 materi Actual material usage per unit m2 levels per m2 per levels millio al units millio unit units n VND usage n VND m2 m2 Adjusted Adjuste Pla Adjuste Plan Plan plan d plan n d plan Q0 Q 0 Q1 C0 C 0 C1 U0 U 0 Q1 x U1 U1 Bed 120 00 248 00 sheets 120 000 120 000 2 2 0 0 B 5 Pillowcas 190 00 180 000 180 000 95 000 es P 0 a Calculate material cost in basis period and analytical period Direct material cost in basis period MC0 QB0 x UB0 x C0 QP0 x UP0 x C0 120 000 x 2 x 190 000 x x 38 525 million VND Direct material cost in analytical period MC1 QB1 x UB1 x C1 QP1 x UP1 x C1 248 000 95 000 x 46 305 million VND b Simple comparison ΔMC MC1 - MC0 46 305 - 38 525 7 780 million VND ΔM ΔMC MC0 x 100 C 7 780 38 525 x 100 It can be seen that the cost of direct materials increased by 7 780 million VND and the growth rate was compared to the plan. Increasing costs is not good and we will analyze in more detail the impact of each element on the direct material cost by using continuous replacement method c Continuous replacement - The influence of production levels ΔQ QB1 x UB0 x C0 QP1 x UP0 x C0 - QB0 x UB0 x C0 QP0 x UP0 x C0 120 000 x 2 x 180 000 x x - 120 000 x 2 x 190 000 x x -575 million VND Δ ΔQ MC0 x 100 -575 38 525 x 100 Q Impact The decrease of production levels makes material costs decrease by 575 million VND. It is equivalent to a decline of . Cause Obviously not producing will not incur raw material costs. However reducing costs in this way is not a good idea because not producing also means no future
