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Drones sells its products to Thailand, Singapore, Japan and the Philippines via distributors in each country. The company also sources materials for its products from

  1. Drones sells its products to Thailand, Singapore, Japan and the Philippines via distributors in each country. The company also sources materials for its products from various countries. Drone expects that the prices of the materials it uses will increase due to a rise in demand for these materials. You have been tasked to prepare the master budget (ie. all the budgets) for the coming year 2021.

(i)What information, data, assumptions and predictions would you require to prepare the budgets and explain why you need them.

(ii)Drones discovered that some of the budgets have been padded in the past. What affect would this have on the company and what can the company do to overcome this problem?

  1. Explain the term'decentralization'with an appropriate illustration. How it is responsibility accounting useful to an organization and how is related to goal / behavioural congruence? Explain your answer with an appropriate illustration.
  2. Sodius Chemical Inc. placed 220,000 liters of direct materials into the mixing process. At the end of the month, 5,000 liters were still in process, 30% converted as to conversion. All direct materials are placed in mixing at the beginning of the process and conversion costs occur evenly during the process. Sodius uses weighted-average costing.

Required:

Determine the equivalent units in process for conversion costs, assuming there was no beginning inventory

  1. Assume that a companysells multiple products, what information, data, assumptions and predictions would the company require to formulate its strategies?

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