Tags: accounting, marginal costing, nuig, solution, video
Now that we have finished revising Marginal Costing, here is a solution to a full question from Accounting at NUI Galway.
Besides the main coursework this year on micro economics it is important to note some of the main events in 2016 that may appear on this years macro questions
1. BREXIT – Impact on Ireland
- Trade with Britain / Balance of payments/tariffs ( Britain expected to stay in customs union with sector specific deals)
- Northern relationship- Good Friday Agreement
- Demand for Irish agri- business / Irish farming sector employment
- Lost revenue for Govt
- Immigration for Irish into Britain
2. Homeless crisis/ housing crisis
- unaffordable rents- increase in families without homes (rent caps?)
- Insufficient temporary accommodation
- Protestors open NAMA owned Apollo house Dec 15th to shelter homeless
- Housing in urban areas-Excess Demand
- Govt initiative ‘Help to buy Scheme’ – this will increase demand and prices well in excess of supply
- Construction employment is starting to grow in mainly Dublin & Cork- 14088 residential units were built this year. Not enough to meet demand ( Construction Industry Federation)
EU Immigration Crisis
- Numbers- from June 2015 to November 2016 1.3m people have travelled to Europe. 3,740 people died making the crossing across the central Mediterranean. 21.3 m people are refugees (51pc children)to date globally mainly from Syria, Afghanistan, Somalia.
- Six wealthiest Nations- US, UK, France, Germany, China, Japan host 9pc of the refugees, 86pc are hosted in developing nations.
- Irelands actions- Irish Refugee Protection Programme announced a plan to welcome 4,000 Syrians, 750 have arrived.
Irish Tourism 2016
- 8.8m tourists visited Ireland in 2016-up 10pc
- expected to increase further- uncertainty from value of sterling, international security, inflated hotel prices in Dublin etc.
Key economic indicators will be covered in class.
sources: Sunday Business Post Jan 1st, Irish Independent Jan 1st, CSO, Trading economics.
SGC Business would like to wish St Gerald’s College students all the best in their Christmas exams.
Beef exports to the UK worth more than €1bn a year are slumping as the unfavourable exchange rate makes it less attractive to British buyers.
Yet Ireland has more beef than ever to sell, the latest figures reveal.
Increased beef supplies come as exports to Ireland’s most important beef market continue to fall in the wake of the Brexit vote. According to figures from the UK’s Revenue and Customs service, during September a total of 14,356 tonnes of beef were imported by the UK from Ireland, a 13pc reduction from the corresponding month in 2015, when 16,499 tonnes of beef were imported.
In 2015, Ireland exported an estimated 500,000 tonnes of beef worth approximately €2.41bn – and half of that went to the UK. Despite the recent slump, Ireland continues to be the biggest source of beef imports for the UK, with 129,739 tonnes imported during 2016.
Imports from Ireland accounted for 75pc of total beef imports from EU countries to the UK during the first nine months of 2016.
The Agriculture and Horticulture Development Board in the UK says the fall in Irish imports comes despite lower domestic prices in Ireland on the back of higher production.
While it says average unit prices were still up over 1pc in sterling, it also adds that increased domestic supplies in the UK will have been a strong contributor to the decline in trade levels.
However, according to figures seen by FarmIreland.ie, we could have more beef than ever to sell.
The highest beef kill in 12 years is currently predicted for 2017, while cattle supplies in Ireland could be 120,000 head higher next year, at 1.75m, on the back of increased calvings from Ireland’s expanding dairy sector.
The figures, which were presented by Bord Bia at last week’s Beef Forum, also show that the beef kill in 2016 is now estimated to be close to 1.64 million head, which is up as much as 80,000 on 2015. To date, in 2016 Irish cattle supplies are up 5.1pc or 68,500 head, according to the Bord Bia figures.
IFA president Joe Healy has urged a strong commitment on both sides of the Irish Sea to achieve a positive trading relationship in Brexit negotiations between the EU and the UK.
On the beef situation, Mr Healy said that with more than 50pc of our beef exports going to the UK market, the weakness of sterling is a major challenge.
However, the IFA says that exchange rate volatility is not the only determinant of price returns and higher prices are justified and necessary.
“Demand for beef in the UK remains very strong,” IFA national livestock chairman Angus Woods said.
“We are in the high demand Christmas procurement period, and trade has picked up.
“It is simply not acceptable for processors to return an unviable price to our farmers at this time.
“Prices must be restored to viable levels – factories must demand significantly higher prices from their British retailer customers and pass these increases directly back to farmers