• Capital allowances are allowed at 12.5% on a reducing balance basis and the company pays income tax annually at 10% one year in arrears. • The cost of equipment contains E100,000 being the book value of an old machine. If it were not used for this project, it would be scrapped with a zero net realisable value. New equipment costing E500,000 will be purchased on 31 December Year 0. You should assume that all other cash-flows occur at the end of the year to which they relate. • The company has an on-going alternative use for the materials that are costed for the project. However, there is E40,000 of materials in year 4 that will come from obsolete stocks; it has a scrap value of E3,000 and a replacement value of E60,000. • The development costs of E90,000 have already been spent. • Overheads have been costed at 50% of direct labour, which is the business's normal practice. An independent assessment has suggested that incremental overheads are likely to amount to E30,000 a year. • The business's after tax cost of capital is 12%.
are required to advise the company, with reasons, whether it should proceed with the above ect. (to) Corporate Governance Corporate governance promises to make all those in power in giant firms, hospitals, universities and voluntary organisations accountable and their actions visible'.
Define corporate governance and critically evaluate the role of management accounting within good corporate governance structures.
(c) Project Work You have been asked to undertake a management accounting review of an activity; a project; a service; a department or an event, which has occurred or is to occur in either your area of work or n area of business where you have access to the relevant information. You should present your study in report format and explain the management accounting methods being used and why, the inderpinning theory and relevant definitions, numerical analysis, any assumptions and any iifficulties encountered. Consider the information you have produced, its quality and role in the Jecision making process. Consider the wider implications of the findings of your review.