REVISION QUESTIONS ACCT 321 MANAGERIAL ACCOUNTING BUSINESS AND ECONOMICS ACCOUNTING, FINANCE AND INVESTMENT - $21.19   Add to cart

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REVISION QUESTIONS ACCT 321 MANAGERIAL ACCOUNTING BUSINESS AND ECONOMICS ACCOUNTING, FINANCE AND INVESTMENT

REVISION QUESTIONS ACCT 321 MANAGERIAL ACCOUNTING BUSINESS AND ECONOMICS ACCOUNTING, FINANCE AND INVESTMENT Question One a. List five assumptions of Break even points (5 marks) b. Discuss any three uses of the break even points (3 marks) c. A company produced 10 units and only sold 8,500 units. The selling price per unit issh.20 while the costs per unit are Variable selling costs sh.2 Variable administrative sh.2 Direct materials sh.2 Direct labor sh.3 Fixed Costs Production sh.15,000 Administrative sh.15,000 Selling sh.20,000 Required: i) P.v ratio (2 marks) ii) Break even points in units and sales (5 Marks) iii) Sales and units needed to achieve a point of sh.40,000 (5 Marks) iv) Actual sales/profits realized (4 Marks) v) Margin of safety (4 Marks) vi) Limitation of break even analysis (2 Marks) Question Two The following data was presented regarding sales and advertising expenditure Sales advertising expenditure (Ksh. M) (Ksh. ‘000’) 3.5 210 92 250 7.9 290 8.6 330 9.4 370 10.1 410 Calculate a. Determine the a and b coefficients for the functions Y=a bx (8 Marks) b. Calculate r and interpret (4 Marks) c. Calculate r2 and interpret (4 marks) d. Determine the advertising expenditure needed to generate sales of sh.9,500,000 (4 Marks) Question Three a. Discuss any five differences between management accounting and financial accounting (10 Marks) b. Discuss the functions of management accounting with reference to the five functions of management. (10 Marks) Question Four The following information has been extracted from the books of Solacasts Ltd for the year 31 march 2010 Production 30,000 units Sales 24,000 units Production Costs sh.’000’ Direct materials 7,200 Direct labor 1,800 Variable overheads 1,500 Fixed overheads 2,700 Selling and administrations costs Sales and salaries 450 Variable sales commission 300 Promotion and advertising 480 Other fixed costs 720 Company unit selling per sh.550 Required a) Marginal cost statement (8 Marks) b) Absorption cost statements (8 marks) c) Profit reconciliation statement (4 Marks) Question Five A company has budgeted to produce 2750 articles in 22,000 hours with fixed costs of sh.88, 000 and variable overheads of sh.55, 000 The company’s production during the period of the budget was 2,700 articles in 21,500 working hours with fixed overheads costing sh.90, 000 and variable overheads sh.58, 000 Calculate a. Fixed production overhead variances (5 Marks) b. Variable productions overhead variances (5 Marks) c. Discuss any five causes of variances in production (10 marks)

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REVISION QUESTIONS ACCT 321 MANAGERIAL ACCOUNTING BUSINESS AND ECONOMICS ACCOUNTING, FINANCE AND INVESTMENT

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