HND 财政预算写作格式

1. Introduction (What will you introduce and analyze in this report) 2. Flexed the budget see Appendix ?

3. Variances analysis ( the calculation of variance shown in Appendix 2) （Explain the variance and indicate the possible reasons for theses variance) 1) Material variances analysis Sample

The total variance for direct materials is found by comparing actual direct material cost to standard direct material cost. The direct material total variance is …. It means that the actual material costs are much higher than anticipated. I will break the direct materials variance into two components so that we can identify its cause more accurately

Materials Price Variance: A variance that reveals the difference between the standard price for materials purchased and the amount actually paid for those materials

2) 3) 4. 5. 6.

Labor variance analysis Overheads variance analysis

Recommendations

Assumptions made for the investment appraisal techniques

The evaluation of the project using payback period and accounting rate of return methods. Recommendations about investment （What？How? The advantage and disadvantage of these investment appraisal techniques. Recommend based on the case provided）

7. The evaluation of the project using Net Present Value and Internal Rate of Return（What？How? Recommend based on the case provided） 8. Consideration of Non-financial Factors 9. Conclusions and recommendations 10. Reference 11. Appendixes

Requirements

1. A4 Paper of white color should be used

2. Sub- Heading: Times New Roman, 14, Bold, Flush Left

3. Text: Times New Roman 12, Line spacing: 1.5, 0.5 line spacing before and after paragraph, Flush Left

4. Page numbers: lower case Roman numerals, centered on bottom of page 5. Contents, Reference and Appendix: appears as a separate page

Reference

• Citing References in the report

– E.g. Making reference to published work appears to be characteristic of

writing for a professional audience (Cormack 1994).

– Cormack (1994, p.32-33) states that 'when writing for a professional

readership, writers invariably make reference to already published works'

• All citation entries are listed in alphabetical order based the first author's last name

• Book: Redman, P.（2006）. Good essay writing: a social sciences guide. 3rd ed. London: Open University in assoc. p.63-64.

– (Redman, 2006)

• Journal Article: Norton JE, Ashley MV（2001）. What health care assistants know about clean hands. Nursing Times, 97(22), p.63-64.

– (Norton and Ashley 2001)

• News paper: Slapper, G.（2005）. Corporate manslaughter: new issues for lawyers. The Times, 3 Sep. p.4-5.

• Web Site: Kenway, P. (2008) Addressing in-work poverty [online], available:http://www.jrf.org.uk/publications/addressing-work-poverty [accessed 21 January 2010]

– Citing References in the report e.g. – Kenway (2009) emphasizes….

• If no author is given for this webpage

• BBC (2010) Obama makes jobs priority [online], available: http://news.bbc.co.uk/1/hi/world/americas/8484400.stm [accessed 21 January 2010].

– Citing References in the report e.g. – A BBC (2010) report queries

Appendix 1

Flexed budget in line with actual activity Original Flexed budget budget ￡ ￡ Direct material Direct Labor Variable production overheads Fixed overheads Rent and rates Administration overheads Insurance Total Actual Results ￡ Variance F/A ￡ Rate of signification % Appendix 2

1. Material Total Cost Variance=

(Budgeted Quantity × Budgeted Price) − (Actual Quantity × Actual Price) =

2. Direct Material Price:

Actual Quantity × (Budgeted Price − Actual Price)=

3. ….

7. Total Overhead

(Budgeted Variable Overhead + Budgeted Fixed Overhead) − (Actual Variable Overhead + Actual Fixed Overhead) =

Appendix 3

Payback period Year Yearly net cash flow ￡ 1 2 3

Accounting Rate of Return

Cumulative cash flow ￡ Total profit = Average profit = ARR =

Appendix 4

Net present value

PV factor =

1(1r)n

where “r” is the discount rate and “n” is the year of the cash flow Year Annual Cash flow ￡ % PV factor Present Value ￡

Calculation of net present value at ?% Year Annual Cash flow ￡ ?% PV factor Present Value ￡ Internal rate of return

Formula (P267)