Dalron Pedro accounting grade 11

998 Words4 Pages
Dalron Pedro

11 HZ

Accounting Report: Control of Fixed Assets

Due date: 16 February 2015

Question 1
The drivers carry a full load of goods to Johannesburg but return empty to Durban. Are the drivers receiving a fair remuneration (wage) for work done? Motivate by using calculations.
Answer
Drivers are not getting a fair remuneration.
Drivers are paid per trip and not per hour or days’ work.
Drivers are not paid the same amount for the same trip, from Durban to Johannesburg and back.
Sibusizwe earns R500.00, Mike earns R450.00 and Xholani earns R550.00 per round trip.
Drivers work either day shift or night shift as such there should be different rates for working different shifts but they do not
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If the problem is not the control and is lying in the performance of the trucks itself he should consider selling truck 3 and buy a new truck that will perform and earn plus minus the income of truck 2.
In conclusion truck 3 is the newest truck, 1 year and 9 months old, but it has the lowest income earned per round trip and a high fuel and maintenance cost.
Therefore truck 3 is the least profitable of the three trucks.

Question 5

What advice would you give Jimmy so that he can maintain effective control over his trucks in the future?

Answer

For Jimmy to maintain effective control over his trucks the following is advised:
His trucks need to be maintained regular and on time in order to extend its lifespan and to ensure effective use of the trucks in order to generate maximum profit.
He must check the millage travelled on each round trip
Jimmy must install tracking devices on each truck to keep track of where the truck is at all times.
The tracking device will help to make sure that the trucks are not misused or abused by the drivers.
The tracking device will also give control over the number of hours of each round trip.
He must make sure that the trucks are properly insured against theft, accidents etc.
Jimmy must make sure that there are proper recording of each truck:
Fuel and maintenance cost
Cost per kilometre
Hours per round trip
Number of trips per week

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