Scribd
Upload
8 views5 pages

Management Accounting 1

Manager in accounting schemes, better understanding of what accounting business managers do.

Uploaded by

eujotham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
8 views5 pages

Management Accounting 1

Manager in accounting schemes, better understanding of what accounting business managers do.

Uploaded by

eujotham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

FACULTY OF BUSINESS & MANAGEMENT

FINAL SEMESTER EXAMINATION


SEPTEMBER, 2021– JANUARY, 2022.
MODULE CODE: BBA 3203 MANAGEMENT
ACCOUNTING
BY: MRS MUDONDO ERINAH
ATTEMPT ALL QUESTIONS
ALL QUESTIONS CARRY SAME MARKS
CASE STUDY.
Internal management accounting systems are systems used to provide
critical information to management to be used in operational business
decision-making. For example, a manufacturing company might use these
systems to help in the costing and managing of their process. A hospital
might use management accounting systems to assist them in managing
insurance billing and other in-house requirements. These systems vary
within the industries they are used within and allow for functionalities and
reports specific to that industry.

Ecobos Co. Ltd is a manufacturing company. It discovered the secret of


one of the management accounting tools that could enable them to get the
most value out of their resources. One tool for weighing this relationship
is marginal analysis. On that note, Ecobos company in its bakery
business, ensures that the benefit of certain activities outweigh the cost in
order to maximize profits.

the examination of the costs and benefits of a marginal (small) change in


the production of goods or an additional unit of an input or good, the
examination of the costs and benefits of a marginal (small) change in the
production of goods or an additional unit of an input or good. For example
this company uses marginal analysis to determine the potential benefit of
an increase in bread production. This decision-making tool is useful for
their businesses decisions on how to allocate their scarce resources in
order to minimize costs and maximize benefits. Marginal analysis evaluates
the relationship between costs and benefits.
Qn.1
(a) Discuss the difference between financial accounting, cost accounting
and management accounting. ( 10Marks)
(b) Using the marginal analysis formula calculate the net benefit from the
following information. The realised total benefit in production of ABC
Manufacturing Company is $1254. The total cost incurred in this financial
period is $960. ( 5Marks)
(c) Marginal benefit, also known as marginal revenue, is the increase in
total benefits as a result of a change in output of a good by one unit.
(i) Illustrate the marginal benefit equation and clearly explain the
components of the equation, with an example.
(ii) Illustrate the marginal cost equation and clearly explain the components
of the equation with an example. (10Marks)

Qn.2.
(a) Elaborate the importance of Management accounting concerned with
identifying, presenting and interpretation of accounting information.
(8Marks)
(b) As a newly appointed management accountant in your presentation to
your department team, in details describe the quality of information
produced for decision making (9Marks)
(c) In the context of budgetary control, the term variance is considered
important and management has to investigate its cause. Given the
following information, calculate the variance. (8Marks)
Budget heading; Transportation
Budget to date (Expected spend) $ 140,000.
Actual to date (Actual spend) $ 152,000.
Qn.3.
(a) Marginal cost is the increase in total cost as a result of a change in
output of a good by one unit. With an example demonstrate how it is
calculated using its formula. (9Mks.)
(b) Maximizing the profit by considering factors like availability of funds, the
economic value of the project, taxation, capital return, and accounting
methods in capital budgeting, demonstrate how to use the five capital
budgeting techniques. (10Mks.)
(c) Mean and Median are both measures of where the center of a data
set lies (called “Central Tendency” in statistics. Example, take this list of
numbers: 10, 10, 20, 40, 70.
(i) Calculate the Mean and Median.( 6Mks.)
(d ) Compare and Contrast Variable and Absorption. Costing. (5Mks)

Qn.4

(a) A business bought shirts on two separate occasions at two different


prices during a month: 100 shirts at $10 and 200 shirts at $20. At the end of
the month, the business had sold 50 shirts.

(i) Using FIFO, LIFO and Weighted average cost method of valuing
inventory, calculate the cost of goods sold after selling the 50 shirts at $10.
( 9Mks.)

(ii) Calculate the total inventory value of the remaining inventory. (8Mks)

(b Important as it is, Management accountants should behave ethically.


They must follow the highest standards of ethical responsibility and
maintain a good professional image. Describe the 8 ethical responsibilities
that a management accountant has to follow. ( 8Mks.)

You might also like