question 1

Question 1 - The Nostalgic Lamp Company
The Nostalgic Lamp Company manufactures three types of lamp: Mr T., Gloria Gaynor and Donny Osmond models. Production of the lamps are organised into three costs centres. The profit and loss account for the year just ended shows that the Donny Osmond makes a loss and it has been suggested that they may be discontinued.

£000s Mr T Gloria Gaynor Donny Osmond

Sales 500 350 650
Direct Materials 150 80 250
Direct Labour 100 100 250
Variable overheads50 40 60
Fixed overheads 100 80 110
Totals costs 400 300 670
Profit/loss 100 50 (20)

Questions
1. Define the term ‘cost centre.’ (2 marks)
2. What are the pros and cons of using costs centres in dealing with costs? (4 marks)
3. From the above schedule of costs and profits:-
a) Calculate the variable cost of producing the each of the three lamps (3 marks)
b) Calculate the contribution of each of the three lamps (3 marks)
c) Calculate the total fixed costs (1 mark)
d) Calculate the overall level of profits. (2 marks)
4. The Donny Osmond lamp is discontinued. Evaluate the impact on the company’s overall profits

answer:
1.cost centrer:a department or section of an organisation to which specific costs can be allocated
2.pros:
(1).team spirit is easier to generate among 20 people than among 2000
(2).by identifying the costs generated by each department,the firm is better able to decisions(3).bucause the costs can be allocated,so it`s easy to collect the money.
cons:
1.maybe after a long time there will be some impacts.
2.YOU should give each individual benefit,maybe some argument appears,bucause of personal

ipod vending machine

I have already evaluated some topics about "vending machine",but it`s one is more interesting thing to evaluate.

Like other vending machines,it is more convenient than others.I like it!It looks fashion!cool!You may get the things that you want to buy in shops.

BUT!!!!I think the drawbacks is obvious!

1.you can`t get more information from it!what you can do is just buy it....if you don`t know some key point!Maybe you will regret...

2.HOW MUCH MONEY IT ACCEPTS?

AS we know,in EF school, the self machine just accept the coins!thet don`t accept the cash!This is a problem!LET US ASSUME the ipod machine accepts the cash,so what per value does it accept?10?20?because most of machine don`t accept 50!(when I take money from the bank,the machine only gives me 10and 20)so if you want to buy ITOUCH( cheapest:179pounds )you must put 10times 18=180.You must put 10pounds into the machine 18times.....get tired!

ALSO,does the machine give back you cash or coins???if I want to buy an IPOD 129pounds and I just got 140pounds(20times7=140)so the machine must give 11 pounds back to me.Is it 11 one pound coins????heavy....................

SOMETHING I WANT TO MENTION:the security!IN THE MID NIGHT,some one break the glass by using hammer or screwdriver and they stolen the ipod?What to do???(I don`t think the glass is as strong as diamond)

Emmmmm....I think it is a good idea,but bucause you put IPOD in the machine not 50p`s sweets.It`s difficult to protect the machine....that is the point!