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Answer to option A is as following:
Salaries = Head of Accountant Salary (unchanged) + (2 Fully Qualified (FQ) Accountants + 3 Part Qualified (PQ) Accountants + 4 Accounting Technicians )*10%)
Additional cost = Salaries*25%
Amortisation of non-current assets = same as before
Accounting admin costs: materials and variable overheads = same as beforePlug in the number into Excel and it will give you the correct answer.
Hi All! I have successfully been able to solve Q1 for Option A after weeks of trying! It was so confusing but I will list the method below to help!
Step 1) Calculate the salaries. Complete the sum of:
Head of Accounts = salary is unchanged
FQ = (2 x FQ cost) * 1.10
PQ = (3 x PQ cost) * 1.10
AT = (4 x AT cost) *1.10
= Total all of the above to get the TOTAL SALARY COST.Step 2) Calculate 25% of the TOTAL SALARY COST.
Step 3) Sum the below for other costs. Note: these are unchanged so take the amounts as listed.
Amortisation + Accounting admin costs = TOTAL OTHER COSTS.Step 4) Total everything to get your final answer:
S1) TOTAL SALARY COST X
S2) TOTAL SALARY COST * 25% X
S) TOTAL OTHER COSTS X
TOTAL = ANSWERHope this helps you guys! You only need 50% to pass so if you use the above for Q1, leave Q2 blank if you cannot calculate and then Q3 is multiple choice so is straightforward.
Hi,
I am struggling with the accountancy department quiz questions 1 and 2. I have tried almost every suggestion on here and still haven’t managed to find the correct answer.Please can someone help
ThanksI did not understand your steps. You mentioned “Step 3) Sum the below for other costs. Note: these are unchanged so take the amounts as listed.
Amortisation + Accounting admin costs”This should be as follows: (10% * 80) + (20%*160)
Furthermore the final calculation:
Step 4) Total everything to get your final answer:
S1) TOTAL SALARY COST X
S2) TOTAL SALARY COST * 25% X
S) TOTAL OTHER COSTS X
TOTAL = ANSWERdo we need to multiply Step 1 * Step 2 * Step 3? Please. Thank you
Everyone that is stuck on the above, you must make sure to include you own costs, 70k in the total salaries. and when multiplying the additional 25% charges. You must also include yourself in those charges
Concentrate on A, it is by far easier.
All you need to do is work out the salary costs including increases and additional 25%, no need for redundancy costs as it doesn’t tell you to calculate.
Final tip for A – remember the Breakdown of total accounting department cost also.
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