Assessment Essays

2560 WordsSep 2, 201411 Pages
ACCT1068 Cost Management and Applications Case Study Assignment Barnes Scuba Diving Case James and Rob were relaxing with some friends on the patio of James’ new apartment in Surfer’s Paradise, Queensland, Australia. Just that morning they had looked over their business’s profit statement and were feeling very pleased with what they saw. Barnes Scuba Diving (Barnes), the business they’d started in 2000, had made profits for the last six months that exceeded their expectations. While both were pleased that their business had apparently done so well, they admitted that they didn’t really know why, because they had experienced a number of issues throughout the period1 that were expected to negatively affect profit. “You…show more content…
3 Barnes Scuba Diving – Actual Results For the six months ended 30 June, 2013 Barnes Scuba Diving earned profit that was higher than budgeted for its Scuba Diving course. Table 5 provides details of actual profit. Table 5: Barnes Scuba Diving Actual Profit Results Six months ended 30 June, 2013 Sales Revenue $756,000 Direct Materials Certificates Open Water Manuals Dive Logbooks T shirt/sweater Direct Labour Instructors labour Variable Overheads Petrol Advertising Indirect materials Administration costs $ 47,172 23,940 20,402 47,174 268,800 12,096 16,128 34,673 28,560 Total Contribution Margin Fixed Overhead Advertising Rent Insurance Depreciation Other $257,055 10,000 18,000 13,000 15,000 9,000 Net Profit
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