1

MODUL PRAKTIKUM

AKUNTANSI MANAJERIAL II

PROGRAM STUDI AKUNTANSI

FAKULTAS EKONOMI DAN ILMU SOSIAL

UNIVERSITAS BAKRIE

Dr. Jurica Lucyanda, S.E., M.Si.

 KATA PENGANTAR

Puji dan syukur kami panjatkan kepada Tuhan Yang Maha Esa,
karena telah memberi petunjuk bagi seluruh penulis untuk menyelesai-
kan buku “Modul Praktikum Akuntansi Manajerial II”.

Modul ini diperuntukan bagi para mahasiswa yang sedang

menempuh mata kuliah Akuntansi Manajerial II. Dengan adanya buku
ini, kami berharap supaya para mahasiswa dapat lebih memahami materi
Akuntansi Manajerial II.

Kami sadar bahwa buku ini jauh dari kata sempurna, oleh karena itu
kami sangat mengharapkan kritik dan saran dari para pengguna buku ini.

Jakarta, 13 Januari 2020

Penulis
i
 DAFTAR ISI

KATA PENGANTAR ............................................................................ i

DAFTAR ISI ..........................................................................................ii
BAGIAN I. COST-VOLUME-PROFIT ANALYSIS ...................... 1
BAGIAN II. MASTER BUDGET AND RESPONSIBILITY
ACCOUNTING .............................................................. 5
BAGIAN III. FLEXIBLE BUDGETS, DIRECT-COST
VARIANCES, AND MANAGEMENT
CONTROL .................................................................... 12
BAGIAN IV. FLEXIBLE BUDGETS, OVERHEAD COST
VARIANCES, AND MANAGEMENT
CONTROL .................................................................... 17
BAGIAN V. DECISION MAKING AND RELEVANT
INFORMATION .......................................................... 19
BAGIAN VI. STRATEGY, BALANCE SCORECARD, AND
STRATEGIC PROFITABILITY ANALYSIS .......... 27
BAGIAN VII. PRICING DECISIONS AND COST
MANAGEMENT .......................................................... 29
BAGIAN VIII. COST ALLOCATION, CUSTOMER
PROFITABILITY ANALYSIS, AND SALES-
VARIANCE ANALYSIS ............................................. 33
BAGIAN IX. BALANCE SCORECARD : QUALITY AND
TIME ............................................................................. 36
BAGIAN X. CAPITAL BUDGETING AND COST
ANALYSIS .................................................................... 39

ii
BAGIAN XI. MANAGEMENT CONTROL SYSTEM,
TRANSFER PRICING, AND
MULTINATIONAL CONSIDERATIONS ......... 43
BAGIAN XII. PERFORMANCE MEASUREMENT,
COMPENSATION, AND MULTINATIONAL
CONSIDERATION ...................................................... 46

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BAGIAN I. COST-VOLUME-PROFIT
ANALYSIS

1
1. Gentlement Corporation produces shoes. The following information
is from the budget of Gentlement Corporation for 2017.
Expected sales (units) 5,000
Selling price (per shoe) $ 75
Variable Cost (per Shoe)
 Direct material $ 12
 Direct manufacturing labor $8
 Other variable cost
(manufacturing,
marketing & General ) $5
Total variable cost per Shoe $ 25
Fixed Cost
 Manufacturing $ 20,000
 Marketing & General $ 130,000
Total fixed cost $ 150,000

REQUIRED
a) Calculate Break Even Point (BEP) in unit and $ ?
b) Calculate the degree of operating leverage ?
c) Calculate the margin of safety (in unit and $ ) ?
d) If the target operating income of Gentlement Corporation for 2017
is $ 250,000, calculate the number of shoes that must be sold by the
company to achieve the target operating income ?.

2
e) If, the management of the company plans to increase both selling
price by $ 15 per unit and direct material cost by $ 12 by using a
higher quality direct material. The higher selling price would cause
demamnd to drop by 10 %. Do you agree with this plan ? Show your
calculation to support your argument.

2. The Hoot Company manufactures and sells pens. Currently,

5.000.000 units are sold per year at $0,50 per unit. Fixed costs are
$900.000 per year. Variable costs are $0,30 per unit.

REQUIRED:
a) Compute current annual operating income.
b) Compute breakeven point in units.
c) Compute breakeven point in revenues.
d) If starting point is $0 revenues at 0 units sold, prepare cost-
volume graph for Hoot Company.

3. Lifetime Escapes generate average revenue of $50.000 per person on

its five-day package tours to wildlife parks in Kenya. The annual
fixed cost total $520.000 and variable costs per person are as
follows:
Airfare $1.400
Hotel accommodations 1.100
Meals 300
Ground transportation 100
3
 Park tickets and other costs 800
Total 3.700

REQUIRED:
a) Calculate the number of package tours that must be sold to break
even.
b) Calculate the revenue needed to earn a target operating income of
$91.000.
c) If fixed costs increase by $32.000, what decrease in variable cost per
person must be achieved to maintain the breakeven point calculated
in requirement 1?

4
BAGIAN II. MASTER BUDGET AND
RESPONSIBILITY ACCOUNTING

5
1. Nice Inc. manufactures and sells two shoes, reguler shoe and
premium shoe. Nice Inc. Accounts for direct material inventory and
finished goods inventory using FIFO Assumption. The following
data are available for 2017 budget:

Nice Inc. uses an activity-based costing system and classifies

manufacturing overhead into 3 (three) activity pools: Setup,
Processing, and Inspection. Activity rates for these activities are $
125 per set-up hours, $ 5 per machine-hour, and $ 20 per inspection
hour. Other information follows:

6
 REQUIRED:
Prepare for the year 2017
a) Revenues budget.
b) Production budgets in units
c) Direct material usage budget and direct material purchase
budget.
d) Direct manufacturing labor cost budget.
e) Manufacturing overhead cost budgets for each of the three
activities.
f) Budgeted unit cost of ending finished goods inventory
g) Ending Inventories budget.

2. Authentic Furniture produces two types of desk, type Executive and

Chairman. There is the complete data for the products: Unit costs
data for direct-costs inputs pertaining to February 2014 and March
2014 are as follows:

7
Manufacturing overhead (both variable and fixed) is allocated to
each desk on the basis of budgeted direct manufacturing labor-
hours per desk. The budgeted variable manufacturing overhead rate
for March 2014 is $40 per direct manufacturing labor-hour. The
budgeted fixed manufacturing overhead for March 2014 is
$54.925. Other data:

REQUIRED:
Prepare the following budgets for March 2014
a) Revenues Budget.
b) Production budget in units.
c) Direct Material Usage budget and direct material purchases
budget.
d) Direct manufacturing labor budget.
e) Manufacturing overhead budget.
8
 f) Ending inventories budget.
g) COGS budget.

3. Follete Inc. operates at capacity and makes plastic combs and

hairbrushes. Although the combs and brushes are a matching set,
they are sold individually and so the sales mix is not 1:1. Follete Inc.
is planning its annual budget for fiscal year 2011. Information for
2011 follows:

9
Follete Inc. uses a FIFO cost flow assumption for finished goods
inventory.
Combs are manufactured in batches of 200, and brushes are
manufactured in batches of 100. It takes 20 minutes to set up for a
batch of combs, and one hour to set up for a batch of brushes. Follete
Inc. uses activity-based costing and has classified all overhead costs
as shown in the following table:

Delivery trucks transport units sold in delivery sizes of 1.000 combs

or 1.000 brushes.

REQUIRED:
Do the following for the year 2011:
a) Prepare the revenue budget.
b) Use the revenue budget to
 Find the budgeted allocation rate for marketing costs.
 Find the budgeted number of deliveries and allocating
rate for distribution costs.
c) Prepare the production budget in units.
d) Use the production budget to

10
  Find the budgeted number of setups, setup-hours, and
allocation rate for setup costs.
 Find the budgeted total machine-hours and the
allocation rate for processing costs.
 Find the budgeted total unit produced and the allocation
rate for inspection costs.
e) Prepare the direct material usage budget and the direct
material purchases budgets in both units and dollars; round to
whole dollars.
f) Use the direct material usage budget to find the budgeted
allocation rate for materials handling costs.
g) Prepare the direct manufacturing labor costs budget.
h) Prepare the manufacturing overhead cost budget for material
handling, setup, and processing.
i) Prepare the budgeted unit cost of ending finished goods
inventory and ending inventories budget.
j) Prepare the cost of goods sold budget.
k) Prepare the nonmanufacturing overhead cost budget for
marketing and distribution.
l) Prepare a budgeted income statement (ignore income taxes).

11
BAGIAN III. FLEXIBLE BUDGETS,
DIRECT-COST VARIANCES, AND
MANAGEMENT CONTROL

12
1. The Giant Company produces lamps. The company’s operating
budget for January 2017 included these data:
 Number of bags produced and sold = 20,000
 Selling price per bag = $ 25
 Variable cost per bag = $ 13
 Fixed costs for the month = $ 150,000
The actual results for January 2017 were as follows:
 Number of bags produced and sold = 18,000
 Average selling price per bag = $ 28
 Variable cost per bag = $ 15
 Fixed costs for the month = $ 160,000

REQUIRED:
a) Prepare a static-budget-based variance analysis for January
2017 perfomanace.
b) Prepare a flexible-budget-based variance analysis for
January 2017 perfomanace.

2. The Miracle Corporation produces bags. Standards per finished unit

for direct material dan direct manufacturing labor were as follows:
 Direct material:
10 pounds at $ 5 per pound = $ 50
 Direct manufacturing labor:
0.8 hour at $ 25 per hour = $ 20

13
 The number of finished units budgeted for Janauary 2017 was 10,000
units, and 9,000 units were actually produced. Actual results in
January 2017 were as follows :
 Direct material : 85.500 pounds = $ 513,000
 Direct manufacturing labor: 8.100 hours = $ 186,300
Assume that there was no beginning and ending inventory either
direct materials and finished units.

REQUIRED
Compute the January 2017 price and efficiency variances for direct
materials and direct manufacturing labor.

3. Bank Management Printers, Inc., produces luxury check-books with

three and stubs per page. Each checkbook is designed for an
individual customer and is ordered through the customer’s bank. The
company’s operating budget for September 2016 included these
data:
Number of checkbooks 15.000
Selling price per book $40
Variable cost per book $16
Fixed costs for the month $290.000
The actual result for September 2016 were as follows :
Number of checkbooks produced and sold 12.000

14
 Actual selling price per book $42
Variable cost per book $14
Fixed costs for the month $300.000

The executive vice president of the company observed that the

operating income for September was much lower than anticipated,
despite a higher-than-budgeted selling price and a lower-that-
budgeted variable cost per unit. As the company’s management
accountant, you have been asked to provide explanation for yhe
disappointing September results.
Bank Management develops its flexible budget on the basis of
budgeted per-output-unit revenue and per-output-unit variable cost
without detailed analysis of budgeted inputs.

REQUIRED
a) Prepare a static-budget-based variance analysis of the
September performance.
b) Prepare a flexible-buget-based variance analysis of the
September performance.
c) Wh might Bank Management find the flexible-budget-based
variance analysis more informative than the static-budget-based
variance analysis ? Explain your answer.

4. O’Shea Company manufactures ceramic vases. It uses its standard

costing system when developing its flexible-budget amounts. In
15
April 2012, 2.000 finished units were produced. The following
information relates to its two direct manufacturing cost categories:
direct material and direct manufacturing labor.
Direct material uses were 4.400 kilograms (kg). The standard
direct materials input allow for one output unit is 2 kg at $15 per kg.
O’Shea purchased 5.000 kg of materials at $16.5 per kg, a total of
$82.500. Actual direct manufacturing labor-hours were 3.250, at a
total cost of $66.300. Standard manufacturing labor time allowed is
1,5 hours per output unit, and the standard direct manufacturing
labor cost is $20 per hour.

REQUIRED:
Calculate the direct materials price variance and efficiency, and the
direct manufacturing labor price variance and efficiency variance.

16
BAGIAN IV. FLEXIBLE BUDGETS,
OVERHEAD COST VARIANCES, AND
MANAGEMENT CONTROL

17
1. Esquire Clothing is a manufacturer of designer suits. The cost of
each suit is the sum of three variable costs (direct material costs,
direct manufacturing labor costs, and manufacturing overhead costs)
and one fixed-cost category (manufacturing overhead costs).
Variable manufacturing overhead cost is allocated to each suit on the
basis of budgeted direct manufacturing labor hours per suit. For June
2016 each suit is budgeted to take four labor-hours. Budgeted
variable manufacturing overhead cost per labor-hour is $24. The
budgeted number of suits to be manufactured in June 2016 is 1.040.
Actual variable manufacturing costs June 2016 were $104.328 for
1.080 suits started and completed. There were no beginning or
ending inventories of suits. Actual direct manufacturing labor-hours
for June were 4.536.

REQUIRED:
a) Compute the flexible-budget variance, the spending variance,
and the efficiency variance for variable manufacturing
overhead.
b) If Esquire Clothing allocates fixed manufacturing overhead to
each suit using budgeted direct manufacturing labor-hours per
suit. Data pertaining to fixed manufacturing overhead costs for
June 2016 are budgeted, $ 124.800 and actual, $ 127.832.
 Compute the spending variance for fixed manufacturing
overhead.
 Compute the production-volume variance for June 2016.

18
BAGIAN V. DECISION MAKING AND
RELEVANT INFORMATION

19
1. Innova Co. manufactures small engines. The company currently
manufactures all the parts used in these engines, but is considering a
proposal from external supplier who wishes to supply the starter
assemblies used in these engine. The starter assemblies are currently
manufactured in Division 1 of Electra Co.
The costs relating to the starter assemblies for the past 12 months
(2016) were as follows:
- Direct Material $ 400,000
- Direct manufacturing labor $ 300,000
- Manufacturing overhead $ 800,000
Total $ 1,500,000

Over the past year (2016), Innova Co. manufactured 150,000 starter
assemblies. The average cost for each starter assembly is $ 10
($1,500,000 : 150,000).
Further analysis of manufacturing overhead revealed the following
information. Of the total manufacturing overhead, only 25 % is
considered variable. Of the fixed portion, $ 300,000 is an allocation
of general overhead that will remain unchanged for the company as
a whole if production of the starter assemblies is discountinued. A
further $ 200,000 of the fixed overhead is avoidable if production of
the starter assemblies is discountinued. The balance of fixed
overhead, $ 100,000, is the salary of the division 1 manager. If
Innova Co. discountinues production of the starter assemblies, the

20
 division manager 1 will be transferred to division 2 at the same
salary.

Innova Co. plans to manufacture 150,000 starter assemblies for

2017. Electra Co., a reliable supplier, has offered to supply 150,000
starter assemblies at $ 8.

REQUIRED:
Should Innova Co. accept the offer of Electra Co. ? Show your
calculation.

2. Roberto buys T-Shirts in bulk, applies its own trendsetting silk-

screen designs, and then sells the T-Shirts to a number of retailers.
Roberto wants to be known for its trendsetting designs, and it wants
every teenager to be seen in a distinctive Roberto T-Shirts. Roberto
presents the following data for its first two years of operations, 2008
and 2009.
2008 2009
Number of T-Shirts purchased 200.000 250.000
Number of T-Shirts discarded 2.000 3.300
Number of T-Shirts Sold 198.000 246.700
(row 1 – row 2)
Average selling price $25 $26
Average cost per T-Shirts $10 $8,50

21
 Administrative capacity 4.000 3.750
(number of customers)
Administrative costs $1.200.000 $1.162.500
Administrative costs per $300 $310
customer (row 8 : row 7)
Administrative costs depend on the number of customers that
Roberto has created capacity to support, not on the actual number of
customers served. Roberto had 3.600 customers in 2008 and 3.500
customers in 2009.

REQUIRED:
a) Calculate Roberto operating income in both 2008 and 2009.
b) Calculate the growth, price-recovery, and productivity
components that explain the change in operating income
from 2008 to 2009.

3. The Award Plus Company manufactures medals for winners of

athletic events and other contests. Its manufacture plant has the
capacity to produce 10.000 medals each month. Current production
and sale are 7.500 medals per month. The company normally charges
$300 per medal. Cost information for the current activity level is as
follows:

22
 Award Plus has just received a special one-time-only order for 2.500
medals at $200 per medal. Accepting the special order would not
affect the company’s regular business. Award Plus makes medals for
its existing customers in batch sizes of 50 medals (150 batches x 50
medals per batch = 7.500 medals). The special order requires Award
Plus to make the medals in 25 batches of 100 each.

REQUIRED:
Should Award Plus accept this special order? Show your calculation.

4. Alfa Beta Corporation manufactures a machine sparepart. The

corporation plans to replace its old machine with new machine. Data
related to the old machine and the new machine are as Follows:
Old Machine New Machine
Annual revenues $ 1,000,000 $ 1,000,000
Original cost $ 300,000 $ 150,000
Useful life 5 Years 4 Years
Current age 1 Years 0 Year

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 Remaining useful 4 Years 4 Years
life
Accumulated $ 60,000 Not acquired yet
depreciation
Current book value $ 240,000 Not acquired yet
Current disposal $ 125,000 Not acquired yet
value
Terminal disposal $0 $0
value (3 Years from
now)
Annual operating $ 75,000 $ 60,000
cost (related to the
machine)
Annual operating $ 800,000 $ 800,000
cost (not related to
the machine)

REQUIRED
Should Alfa Beta Corporation replace its machine ? Show your
calculation

5. Meredith Corporation makes a special-purpose machine, D4H, used

in the textile industry. Meredith has designed the H4D machine for
2009 to be distinct from its competitors. It has been generally

24
regarded as a superior machine. Meredith presents the following data
for 2008 and 2009.

Meredith produces no defective machines, but it want to reduce

direct material usage per D4H machine in 2009. Conversion costs in
each year depend on production capacity defined in terms of D4H
units that can be produced, not the actual unit produced. Selling and
customer-service costs depend on the number of customers that
Meredith can support, not the actual number of customers it serves.
Meredith has 75 customers in 2008 and 80 customers in 2009. At the
start of each year, management uses its discretion to determine the
number of design staff for the year. The design staff and its costs
have no direct relationship with the quantity of D4H produced or the
number of customers to whom D4H is sold.

25
REQUIRED:
a) Calculate the operating income of Meredith Corporation in
2008 and 2009.
b) Calculate the growth, price-recovery, and productivity
components that explain the change in operating income
from 2008 to 2009.
c) Comment on your answer in requirement 2. What do these
components indicate?

26
BAGIAN VI. STRATEGY, BALANCE
SCORECARD, AND STRATEGIC
PROFITABILITY ANALYSIS

27
1. Balance scorecard measures an organization’s performance from 4
(four) perspectives. Explain these perspectives ?

2. Explain the difference between product differentiation strategy and

cost leadership strategy ?

28
BAGIAN VII. PRICING DECISIONS AND
COST MANAGEMENT

29
1. Amazing Co. manufactures and sells dolls. In 2016, it reported the
following:
Unit produced and sold 3,200
Investment $ 2,400,000
Markup percentage on full cost 8%
Rate of return on investment 12 %
Variable cost per unit $ 500

REQUIRED:
a) What was the operating income of Amazing Co. in 2016 ?
What was the full cost per unit ? What was the selling price
per unit ? What was the percentage markup on variable cost ?
b) Amazing Co. is considering increasing the annual spending on
advertising by $175,000. The company believes the
investment will increase the unit sales of 10%. Should the
company make the investment ? Show your calculation !!

2. Scoopy is small distributor of marble tiles. Scoopy identifies its three

major activities and cost pools as ordering, receiving and storage,
and shiping, and it reports the following details for 2011:

30
 For 2011, Scoopy buys 250.000 marble tiles at an average cost of $3
per tile and sells them to retailers at an average price of $4 per tile.
Assume Scoopy has no fixed cost and no inventories.

REQUIRED:
a) Calculate Scoopy’s operating income for 2011.
b) For 2012, retailers are demanding a 5% discount off the 2011
price. Scoopy’s suppliers are only willing to give 4% discount.
Scoopy expects to sell the same quantity of marbel tiles in 2012
as in 2011. If all other costs and csots-driver information remain
the same, calculate Scoopy operating income for 2012.
c) Suppose further that Scoopy decides to make changes in its
ordering and receiving-and- storing practices. By placing long-
run orders with its key suppliers, Scoopy expected to reduce the
number of orders to 200 and the cost per order to $25 per order.
By redesigning the layout of the warehouse and reconfiguring
the crates in which the marbel tiles are moved, Scoopy expects
to reduce the number of loads moved to 3.125 and the cost per
load moved to $28. Will Scoopy achieve its target operating
income of $0,30 per tile in 2012? Show your calculations.

3. Intentical Inc., manufactures game system. Intentical has decided to

create and market a new system with wireless controls and excellent
video graphics. Intentical’s managers are thinking of calling this
system the Yew. Based on past experience they expect the total life
31
cycle of the Yew to be four years, with the design phase taking about
a year. They budget the following costs for the year:

REQUIRED:
a) Suppose the manager at Intentical price the Yew game system
at $110 per unit. How many units do they need to sell to break
even?
b) The managers at Intentical are thinking of two alternative
pricing strategies.
 Sell the Yew at $110 each from the outset. At this price
they expect to sell 1.500.000 units over its life-cycle.
 Boost the selling price of the Yew in Year 2 when it first
comes out to $240 per unit. At this price they expect to
sell 100.000 units in Year 2. In Year 3 and 4 drop the
price to $110 per unit. The managers expect to sell
1.200.000 units in Years 3 and 4.
Which pricing strategy would you recommend? Explain.

32
 BAGIAN VIII. COST ALLOCATION,
CUSTOMER PROFITABILITY ANALYSIS,
AND SALES-VARIANCE ANALYSIS

33
1. Spectra Corporation manufactures premium bags. Its plant has a
production capacity of 50,000 bags per year. Giant Company as a
single distributor accounts for all existing sales. Expected result for
the coming year (2017) are as follows:
Total Per Unit
Unit Sold 40,000
Revenue $ 1,000,000 $ 25
Manufacturing Costs/Costs of Goods Sold
Variable Manufacturing $ 620,000 $ 15,5
Costs
Fixed Manufacturing $ 100,000 $ 2,5
Costs
Total Manufacturing $ 720,000 $ 18,0
Costs/Cost of Goods Sold
Non Manufacturing Costs
Variable Non $ 160,000 $ 4,0
Manufacturing Costs
Fixed Non Manufacturing $ 40,000 $ 1,0
Costs
Total Non Manufacturing $ 200,000 $ 5,0
Costs
Full Costs of The Product $ 920,000 $ 23,0
Operating Income
$ 80,000 $ 2,0

34
In December 2017, Cheaper Company has ordered to buy 4,000 bags
from Spectra Corporation at $ 22 per bag.

REQUIRED
Should the offer of Cheaper Company be accepted by Spectra
Corporation ???? Show your calculations ???

35
BAGIAN IX. BALANCE SCORECARD :
QUALITY AND TIME

36
1. The Seaworld Corporation uses an injection molding machine to make
a plastic product, Z39, after receiving firm orders from its customers.
Seaworld estimates that it will receive 50 orders for Z39 during the
coming year. Each order of Z39 will take 80 hours of machine time.
The annual machine capacity is 5.000 hours.

REQUIRED:
a) Calculate (a) the average amount of time that an order for Z39
will wait in line before it is processed and (b) the average
manufacturing cycle time per order for Z39.
b) Seaworld is considering introducing a new product, Y28. The
company expects it will receive 25 orders of Y28 in the coming
year. Each order of Y28 will take 20 hour of machine time.
Assuming the demand for Z39 will not be affected by the
introduction of Y28, calculate (a) the average waiting time for
an order received and (b) the average manufacturing cycle time
per order for each product, if Seaworld introduces Y28.

2. The Grober Corporation makes wire harnesses for the aircraft

industry. Grober is uncertain about when and how many customers
orders will be received. The company makes harnesses only after
receiving firm order from its customers. Grober has recently
purchased a new machine to make two types of wire harnesses, one
for Boeing airplanes (B6) and the order for Airbus Industries airplanes

37
(A2). The annual capacity of the new machine is 8.000 hours. The
following information is available for next year:

REQUIRED:
a) Calculate the average manufacturing lead times per order (a)
if Grober manufactures only B6 and (b) if Grober
manufactures both B6 and A2.
b) Even though A2 has a positive contribution margin, Grober’s
manager are evaluating whether Grober should (a) make and
sell only B6 or (b) make and sell both B6 and A2. Which
alternative will maximize Grober’s operating income? Show
your calculations.

38
BAGIAN X. CAPITAL BUDGETING AND
COST ANALYSIS

39
1. The following table shows two schedules of prospective operating
cashflow, each of which requires the same net initial investment 0f
$ 10,000 now:
Annual Cash Inflows
Year Plan A Plan B
1 $ 3,000 $ 1,000
2 5,000 2,000
3 2,000 3,000
4 3,000 4,000
5 2,000 5,000
Total $ 15,000 $ 15,000
The required rate of return (RRR) is 8 % compounded annually. All
cash inflows occur at the end of each year.
REQUIRED:
a) In term of net present value (NPV) which plan is more
desirable ??? Show your calculation ???
b) In term of discounted payback period, which plan is more
desirable ?? Show your calculation

2. River Company runs hardware stores in a tri-state area. River’s

management estimates that if it invests $250.000 in new computer
system, it can save $67.000 in annual cash operating costs. The
system has an expected useful life of eight years and no terminal
disposal value. The required rate of return is 8%. Ignore income tax

40
 issues in your answers. Assume all cash flows occur at year-end
except for initial investment amounts.

REQUIRED:
Calculate the following for the new computer system:
a) Net present value.
b) Payback period.
c) Internal rate of return. (Tabel on pages 4)
d) Accrual accounting rate of return based on net initial
investment (assume straight-line depreciation).

3. Aini Hospital, a non-profit organization, estimates that it can save

$28.000 a year in cash operating costs for the next 10 years if it buys
a special-purpose eye testing machine at a cost of $110.000. No
terminal disposal value is expected. Aini Hospital’s required rate of
return is 14%. Assume all cash flows occur at year-end except for
initial investment amounts. Aini Hospital uses straight-line
depreciation.

REQUIRED:
Calculate the following for the special-purpose eye-testing machine:
a) Net present value.
b) Payback period.
c) Internal rate of return. (Table on pages 5)

41
d) Accrual accounting rate of return based on net initial
investment

42
BAGIAN XI. MANAGEMENT CONTROL
SYSTEM, TRANSFER PRICING, AND
MULTINATIONAL CONSIDERATIONS

43
1. Teach Friendly Computer, Inc., with headquarters in San Francisco,
manufactures and sells a desktop computer. Tech Friendly has three
divisions, each of which is located in different country:
 China division – manufactures memory devices and
keyboards.
 Indonesia division – assembles desktop computers using
locally manufactured parts, along with memory devices and
keyboards from the China division.
 U.S. division – packages and distributes desktop computers.

Each division is run as a profit center. The costs for the work done
in each division for a single desktop computer are as follows:

Each desktop computer is sold to retail outlets in the United States

for $7.600. Assume that the current foreign exchange rates are as
follows:

Both the China and the Indonesia divisions sell part of their
production under a private label. The China division sells the
comparable memory/keyboard package used in each Tech Friendly
44
desktop computer to a Chinese manufacturer for 4.500 yuan. The
Indonesia division sells the comparable desktop computer to a
Indonesian distributor for Rp1.340.000.
Other data:
 Chinese income tax rate on the China division’s operating
income: 40%.
 Indonesia income tax rate on the Indonesia division’s operating
income: 20%.
 U.S. income tax rate on the U.S. division’s operating income:
30%.

REQUIRED:
a) Calculate the after tax operating income per unit earned by each
division under the following transfer pricing method: (income tax
are not included in the computation on the cost-based transfer
prices)
 Market price,
 200% of full cost, and
 350% of variable cost
b) Which transfer pricing methods will maximize the after-tax
operating income per unit of Teach Friendly Computer?

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 BAGIAN XII. PERFORMANCE
MEASUREMENT, COMPENSATION, AND
MULTINATIONAL CONSIDERATION

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1. Nature’s Elixir Corporation operates three divisions that process and
bottle natural fruit juices. The historical-cost accounting system
reports the following information for 2011:

REQUIRED:
a) Compute return on investment of each division.
b) If required rate of return of 10%. Compute residual income of
each division.
c) If Interest rate of 8%, equity capital is 12%, and long term debt
with market value and book value at the end of 2011 is same.
Compute economic value added of each division.
d) Compute return on sales of each division.

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