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GCE JUN 2008 : (AS 2) People in Organisations and Accounting and Finance

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ADVANCED SUBSIDIARY (AS) General Certificate of Education 2008 Business Studies assessing Module 2: People in Organisations, and Accounting and Finance AST21 Assessment Unit AS 2 [AST21] WEDNESDAY 11 JUNE, MORNING TIME 1 hour. INSTRUCTIONS TO CANDIDATES Write your Centre Number and Candidate Number on the Answer Booklet provided. Answer both questions. INFORMATION FOR CANDIDATES The total mark for this paper is 50. You will be assessed on the quality of written communication demonstrated in your response to all questions except 2(a)(i) and (ii). Figures in brackets printed down the right-hand side of pages indicate the marks awarded to each question or part question. ADVICE TO CANDIDATES You are advised to take account of the marks for each part question in allocating the available examination time. AST2S8 3515 1 Study the information below and answer the questions that follow. Health and Safety and Training Workers Matt Rugg is the Managing Director of Carpitz Ltd, a successful carpet manufacturer based in Northern Ireland, which employs sixty workers. He is slightly concerned about the liquidity position of the business after higher than usual expenditure last month. Some of this expenditure was necessary in order to meet the firm s obligations under the Health and Safety at Work (NI) Order 1978. Amongst other things, the firm had to buy a new set of fire extinguishers for the factory to replace existing ones. Matt was surprised at both the number and variety of fire extinguishers that were required in order to comply with current regulations. Furthermore, it was decided two months ago to replace some of the machines on the factory floor. A more advanced production model was available which offered Carpitz Ltd the prospect of both energy and labour cost savings. However, the new machines are substantially different from the old ones and Matt knows that sixteen workers will now have to be trained in how to use and maintain them. A local college offers a course, one day per week for twelve weeks, that would meet these requirements. Having just paid out a substantial sum to buy the new machines, Matt is keen to ensure that the company gains maximum benefit from them as quickly as possible. He is considering whether it would be better to train his workers using on-the-job or off-the-job training methods. (a) Explain five duties imposed on Carpitz Ltd as a manufacturing employer under the Health and Safety at Work (NI) Order 1978. [10] (b) Discuss whether Carpitz Ltd should use off-the-job training or on-the-job training in this situation. [15] AST2S8 3515 2 2 Study the information below and answer the questions that follow. Break-even Analysis Sam North owns a small business, Firedax, which manufactures and sells fireplaces, mostly for the local market. Firedax has been in operation for two years and Sam now employs two workers. The business operates from premises near the town centre of Ballymoney, for which Sam pays 1,500 rent and rates per month. His fireplaces sell for an average price of 1,000 each. He has calculated that the materials, labour and energy costs amount to 750 for each fireplace manufactured. Firedax currently sells nine fireplaces each month. Sam is aware that a new housing development is being considered on the outskirts of Ballymoney. He regards it as a potential opportunity for Firedax, even though planning permission has not yet been granted. Sam estimates that the proposed new housing development could double monthly sales. In order to expand the production capacity of Firedax, Sam is considering moving to larger premises three miles away. Although the rent and rates for the new premises would go up to 3,000 per month, Sam is confident that the ability to buy materials in bulk would decrease variable costs down to 700 per fireplace. Unfortunately, the fireplace market is very competitive and Sam considers that it would be unwise to raise prices to finance the relocation. (a) (i) Calculate the following for Firedax: The current monthly break-even output. The current margin of safety. The current monthly profit. [6] (ii) Analyse two difficulties that a business such as Firedax may experience when using break-even analysis. [4] (b) Discuss, using break-even analysis, whether Firedax should move to the new premises. [15] THIS IS THE END OF THE QUESTION PAPER AST2S8 3515 3 SP (NF) T49917/3

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Additional Info : Gce Business Studies June 2008 Assessment Unit AS 2 Module 2: People in Organisations and Accounting and Finance
Tags : General Certificate of Education, A Level and AS Level, uk, council for the curriculum examinations and assessment, gce exam papers, gce a level and as level exam papers , gce past questions and answer, gce past question papers, ccea gce past papers, gce ccea past papers

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