2016年12月ACCA考试P5高级业绩管理真题及答案解析.doc

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1、2016 年 12 月 ACCA 考试 P5 高级业绩管理真题及答案解析(总分：125.00，做题时间：195 分钟)案例分析题(总题数：4，分数：125.00)Section A This ONE question is compulsory and MUST be attemptedMonza Pharma (Monza) is a developer and manufacturer of medical drugs, based in Beeland but selling its products all over the world. As a listed company, th

2、e overall objective of the company is to maximise the return to shareholders and it has used return on capital employed (ROCE) as its performance measure for this objective. There has often been comment at board meetings that it is good to have one, easily-understood measure for consideration.The co

3、mpany has three divisions: the drug development division develops new drug compounds, taking these through the regulatory systems of different countries until they are approved for sale; the manufacturing division then makes these compounds; the sales division then sells them.Monzas share price has

4、underperformed compared to the market and the health sector in the last two years. The chief executive officer (CEO) has identified that its current performance measures are too narrow and is implementing a balanced scorecard (BSC) approach to address this problem. The current performance measures a

5、re: Return on capital employed Average cost to develop a new drug Revenue growthThe CEO engaged a well-known consulting firm who recommended the use of a BSC. The consultants began by agreeing with the board of Monza that the objective for the organisations medium-term strategy was as follows: Creat

6、e shareholder value by:Innovating in drug developmentEfficiency in drug manufacturingSuccess in selling their productsThe consulting firm has presented an interim report with the following proposed performance measures: Financial: ROCE Customer: Revenue growth Internal business process: Average cost

7、 to develop a new drug Learning and growth: Training days provided for employees each yearThe CEO and the lead consultant have had a disagreement about the quality and cost of this work and as a result the consultants have been dismissed. The CEO has commented that the proposed measures lack insight

8、 into the business and do not appear to tackle issues at strategic, tactical and operational levels.The CEO has decided to take this work in-house and has asked you as the performance management expert in the finance department to assist him by writing a report to the board to cover a number of area

9、s. First, following the disagreement with the consultants, the CEO is worried that the consultants may not have been clear about the problems of using the BSC in their rush to persuade Monza to use their services.Second, he wants you to evaluate the choice of performance measures currently used by M

10、onza and those proposed by the consulting firm.Third, there has been a debate at board level about how ROCE should be calculated. The marketing director stated that she was not sure what profit figure (of at least four which were available) should be used and why, especially given the large variatio

11、n in result which this gives. She also wondered what the effect would be of using equity rather than all capital to calculate a return on investment. Some basic data has been provided in Appendix 1 to assist you in quantifying and evaluating these possibilities.In addition to these concerns, the boa

12、rd is considering introducing a total quality management approach within Monza. Obviously, quality of output is critical in such a heavily regulated industry where the products can be a matter of life and death. There has been discussion about testing this idea within the manufacturing division. The

13、 CEO wants to understand, first, the costs associated with quality issues within that division. To aid your analysis, he has supplied some detailed information in Appendix 2. Next, the board requires an outline evaluation of how a total quality management (TQM) approach would fit within the manufact

14、uring division.Finally, the drug development divisional managers have been lobbying for a new information system which will assist their research chemists in identifying new drug compounds for testing. The new system will need to be capable of performing calculations and simulations which require hi

15、gh computational power and memory but will also need to have access to external data sources so that these scientists can keep up with developments in the field and identify new opportunities. The CEO is worried about the cost of such a new system and wants to know how it would fit within the existi

16、ng lean management approach within that division.Appendix 2Cost information for the manufacturing division for the most recent accounting period1. Batches rejected at factory valued at $17m which have a scrap value of $4m.2. Training of factory staff which cost $8m.3. Regulatory fines costing $5m (d

17、ue to drug compounds being outside the specified range of mix of chemical ingredients).4. Discounts given following customer complaints due to late delivery costing $22m.5. Factory product testing department cost $12m.6. Cost of raw materials was $1,008m.Required：（分数：50.00）Write a report to the boar

18、d of Monza to:(i) Assess the problems of using a balanced scorecard at Monza. (8 marks)(ii) Evaluate the choice of the current performance measures and the consulting firms proposed performance measures for Monza. (12 marks)(iii) Evaluate the effect of choosing different profit and capital measureme

19、nts for different measures of return on investment and recommend a suitable approach for Monza. (11 marks)(iv) Analyse the current quality costs in the manufacturing division and then briefly discuss how implementation of total quality management would affect the division. (10 marks)(v) Briefly advi

20、se on how the drug development division can aim to make the new information system lean. (5 marks)Professional marks will be awarded for the format, style and structure of the discussion of your answer. (4 marks)（分数：50.00）_Section B TWO questions ONLY to be attemptedFramiltone is a food manufacturer

21、 based in Ceeland, whose objective is to maximise shareholder wealth. Framiltone has two divisions: Dairy division and Luxury division. Framiltone began manufacturing dairy foods 20 years ago and Dairy division, representing 60% of total revenue, is still the larger of Framiltones two divisions.Dair

22、y divisionThis division manufactures cheeses and milk-based desserts. The market in Ceeland for these products is saturated, with little opportunity for growth. Dairy division has, however, agreed profitable fixed price agreements to supply all the major supermarket chains in Ceeland for the next th

23、ree years. The division has also agreed long-term fixed volume and price contracts with suppliers of milk, which is by far the most significant raw material used by the division.In contrast to Luxury division, Dairy division does not operate its own fleet of delivery vehicles, but instead subcontrac

24、ts this to a third party distribution company. The terms of the contract provide that the distribution company can pass on some increases in fuel costs to Framiltone. These increases are capped at 05% annually and are agreed prior to the finalisation of each years budget.Production volumes have show

25、n less than 05% growth over the last five years. Dairy division managers have invested in modern production plant and its production is known to be the most efficient and consistent in the industry.Luxury divisionThis division was set up two years ago to provide an opportunity for growth which is ab

26、sent from the dairy foods sector. Luxury division produces high quality foods using unusual, rare and expensive ingredients, many of which are imported from neighbouring Veeland. The product range changes frequently according to consumer tastes and the availability and price of ingredients. All Luxu

27、ry divisions products are distributed using its own fleet of delivery vehicles.Since the company began, Framiltone has used a traditional incremental budgeting process. Annual budgets for each division are set by the companys head office after some consultation with divisional managers, who currentl

28、y have little experience of setting their own budgets. Performance of each division, and of divisional managers, is appraised against these budgets. For many years, Framiltone managed to achieve the budgets set, but last year managers at Luxury division complained that they were unable to achieve th

29、eir budget due to factors beyond their control. A wet growing season in Veeland had reduced the harvest of key ingredients in Luxurys products, significantly increasing their cost. As a result, revenue and gross margins fell sharply and the division failed to achieve its operating profit target for

30、the year.Framiltone has just appointed a new CEO at the end of Q1 of the current year. He has called you as a performance management expert for your advice.In my last job in the retail fashion industry, we used rolling budgets, where the annual budget was updated to reflect the results of every quar

31、ters trading. That gives a more realistic target, providing a better basis on which to appraise divisional performance. Do you think we should use a similar system for all divisions at Framiltone?, he asked.You have obtained the current year budget for Luxury division and the divisions Q1 actual tra

32、ding results (Appendix 1) and notes outlining expectations of divisional key costs and revenues for the rest of the year (Appendix 2).Appendix 2Expected key costs and revenues for remainder of the current year1. Sales volumes are expected to be 2% higher each quarter than forecast in the current bud

33、get.2. Average selling price per unit is expected to increase by 15% from the beginning of Q3.3. The exchange rate between the Ceeland Dollar (C$) and the Veeland Dollar (V$) is predicted to change at the beginning of Q2 to C$100 buys V$150. For several years up to the end of Q1, C$100 has been equi

34、valent to V$140 and this exchange rate has been used when producing the current year budget. Food produced in the Luxury division is despatched immediately upon production and Framiltone holds minimal inventory. The cost of ingredients imported from Veeland represents 50% of the divisions cost of sa

35、les and suppliers invoice goods in V$.4. The rate of tax levied by the Ceeland government on the cost of fuel which Luxury uses to power its fleet of delivery vehicles is due to increase from 60%, which it has been for many years, to 63% at the beginning of quarter 3. 70% of the divisions distributi

36、on costs are represented by the cost of fuel for delivery vehicles.5. The CEO has initiated a programme of overhead cost reductions and savings of 25% from the budgeted administration costs are expected from the beginning of Q2. Q3 administration costs are expected to be a further 25% lower than in

37、Q2, with a further 25% saving in Q4 over the Q3 costs.Required:（分数：25）(1).Using the data in the appendices, recalculate the current year budget to the end of the current year and briefly comment on the overall impact of this on the expected operating profit for the year.（分数：12）_(2).Evaluate whether

38、a move from traditional incremental budgeting to a system of rolling budgets would be appropriate for Dairy and Luxury divisions.（分数：13）_Alflonnso is a large producer of industrial chemicals, with divisions in 25 countries. The agrochemicals division produces a chemical pesticide, known internally a

39、s ALF, to control pests in a crop which is of worldwide significance, economically and for food production. Pesticides such as ALF only remain effective for a limited time, after which pests become resistant to them and a replacement product needs to be found. A scientific study has shown that the c

40、urrent variant, ALF6, is becoming ineffective in controlling pests and in some places, it has accumulated in the soil to levels which may significantly reduce crop yields in the future if it is continued to be used. The agrochemicals division is evaluating three new products to find one replacement

41、for ALF6.ALF7ALF7 is produced by a small chemical modification to the existing product and requires little research and development (R the manufacturing division then makes these compounds; the sales division then sells them.Monzas share price has underperformed compared to the market and the health

42、 sector in the last two years. The chief executive officer (CEO) has identified that its current performance measures are too narrow and is implementing a balanced scorecard (BSC) approach to address this problem. The current performance measures are: Return on capital employed Average cost to devel

43、op a new drug Revenue growthThe CEO engaged a well-known consulting firm who recommended the use of a BSC. The consultants began by agreeing with the board of Monza that the objective for the organisations medium-term strategy was as follows: Create shareholder value by:Innovating in drug developmen

44、tEfficiency in drug manufacturingSuccess in selling their productsThe consulting firm has presented an interim report with the following proposed performance measures: Financial: ROCE Customer: Revenue growth Internal business process: Average cost to develop a new drug Learning and growth: Training

45、 days provided for employees each yearThe CEO and the lead consultant have had a disagreement about the quality and cost of this work and as a result the consultants have been dismissed. The CEO has commented that the proposed measures lack insight into the business and do not appear to tackle issue

46、s at strategic, tactical and operational levels.The CEO has decided to take this work in-house and has asked you as the performance management expert in the finance department to assist him by writing a report to the board to cover a number of areas. First, following the disagreement with the consul

47、tants, the CEO is worried that the consultants may not have been clear about the problems of using the BSC in their rush to persuade Monza to use their services.Second, he wants you to evaluate the choice of performance measures currently used by Monza and those proposed by the consulting firm.Third

48、, there has been a debate at board level about how ROCE should be calculated. The marketing director stated that she was not sure what profit figure (of at least four which were available) should be used and why, especially given the large variation in result which this gives. She also wondered what the effect would be of using equity rather than all capital to calculate a return on investment. Some basic data has been provided in Appendix 1 to assist you in quantifying and evaluating these possibilities.In addition to these concerns, the board is considering intr