According to the AASB, what does a set of financial statements comprise? According To the AASB, financial statement (a) International Financial Reporting Standards; (b) International Accounting Standards; (c) IFRIC Interpretations; and standards (d) SIC Interpretations. According to the AASB, set of financial statements involves financial position, comprehensive income, changes in equity and cash flows. d) Review the features of off-the-shelf business management and accounting software products. S.n . O Off-the-self Business management and Accounting software products

Reviews 1 POS System Customers’ history in their database. 2 Inventory Management System Real time inventory counting system. 3 End-To-End Solutions Purchasing, A/P, inventory, POS, invoicing, A/R, and a general ledger system 4 Manufacturing Management Purchasing recording system. Question -2 : a) Calculate the revenue, gross profit and net profit margins for these products. Product COGS/Unit Fixed Cost/ unit Seeling price/Unit Gross profit/Unit Units sold Revenues/ Sales Gross Profit Margin Net profit Margin Front Pocket Wallet $27.00 $16.00 $89.00 $62.00 40.00 $3560 70% 52%

Compact smart phone wallet $29.00 $17.00 $99.00 $70.00 37.00 $3563 71% 54% Calculation 1:  To calculate COGS Front Pocket wallet = 27*40=1080  Revenue/Sales = SP* units sold =89*40=3560 Gross profit margin for Front Pocket wallet: Total revenue-COGS/total revenue =3560-1080/3560=69.66=70% Net profit margin: Gross profit=sales-COGS (93560-1080=2480) Fixed cost=fixed cost per unit* units sold=16*40=640 Net profit=GP-FC=248o-640=1840 Net profit margin: NP/Sales 100=1840/3560100=51.685=52 Calculation 2:  To calculate COGS compact smart phone wallet=29*37=1073  Revenue/Sales =SP unit sold=16*40=640 Gross profit margin for compact smart phone wallet: total revenue-COGS/total revenue =3663-1073/3663=2590/3663=70.56=71% Net profit margin: Gross profit=sales-COGS(3663-1073=2590) Fixed cost=fixed cost per unit* sold=17*37=629 Net profit=GP-FC=2590-629=1961 Net profit margin: NP/Sales 100=1961/3663*100=53.33=54%

b) What is the formula for calculating the contribution margin? Contribution margin calculating formula is stated as following: Contribution margin = total revenue-total sales. c) When calculating the contribution margin, why are only variable costs considered? While calculating the contribution margin only variable costs are considered because they are prone to change within period of time such as raw materials, stationaries, electronic kits etc. d) In what three ways does horizontal analysis look at the change in each item of the financial statements? Three horizontal analysis looks at the change when; changes in monetary, occurrence in percentage change and change is favourable or unfavourable within period of time.

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