SYmon MK
Our aim is your success.
MAC2601
PRINCIPLES OF MANAGEMENT ACCOUNTING
Question 1:
Disclaimer
Although this document has been meticulously crafted, it is provided without any express, implied, or representational
warranties.
The author assumes no liability or responsibility for any actions that are taken as a result of the information contained in thi
document.
The purpose of this document is to serve as a reference, research, and comparison tool.
It is strictly prohibited to reproduce, rescale, or transmit any portion of this document.
,This paper consists of 11 pages.
N.B.:
1. This paper consists of EIGHT (8) questions.
2. All questions must be answered.
3. Basic workings, where applicable, must be shown.
4. Ensure that you are handed the correct examination answer book (blue for accounting) by the
invigilator.
5. EACH QUESTION ATTEMPTED MUST START ON A NEW (SEPARATE) PAGE.
6. The required percentage to pass this module is 50%.
PROPOSED TIMETABLE:
Question Subject Marks Time in minutes
1 Multiple Choice Questions (MCQ) 20 24
2 Direct and absorption costing 15 18
3 The activity-based costing (ABC) system 10 12
4 The process costing system 15 18
5 Standard costing 15 18
6 Sensitivity analysis (probabilities) 5 6
7 Nature and behaviour of costs 10 12
8 Sensitivity analysis (decision trees) 10 12
100 120
[TURN OVER]
, 2 MAC2601
Oct/Nov 2013
QUESTION 1 (20 marks)(24 minutes)
Question 1 contains 10 multiple-choice questions of 2 marks each. Simply write down the
number of each multiple-choice question (1.1 up to 1.10) with the letter of the correct option (A,
B, C or D) next to each respective question number.
Question 1.1 is based on the following information:
Abbettery (Pty) Ltd. is a company which build large shopping malls as well as residential
complexes. The company uses the FIFO method of inventory valuation.
The records below relates to the company inventory records for the month of October 2013:
Date Transactions Details
1/10 Opening inventory 150 units @ R6,50
3/10 Purchases 1 200 units @ R6,80
Freight cost paid is 10% of the cost price per unit.
Average exchange rate for the day: ZAR/USD 9.9275
5/10 Issues 800 units
8/10 Returned to supplier 25 units bought on 8/10
1.1
Using the FIFO method of inventory valuation, the value of inventory purchased on 3 October
2013 is: (2)
A. R8 796
B. R8 061
C. R8 976
D. R8 160
1.2
Which one of the following statements is correct about the inventory valuation method used by
Abbettery (Pty) Ltd.? (2)
A. Materials received or purchased first are issued last
B. Materials received or purchased first are issued first
C. Materials with the highest value are issued first
D. Materials with the lowest value are issued last
[TURN OVER]
Our aim is your success.
MAC2601
PRINCIPLES OF MANAGEMENT ACCOUNTING
Question 1:
Disclaimer
Although this document has been meticulously crafted, it is provided without any express, implied, or representational
warranties.
The author assumes no liability or responsibility for any actions that are taken as a result of the information contained in thi
document.
The purpose of this document is to serve as a reference, research, and comparison tool.
It is strictly prohibited to reproduce, rescale, or transmit any portion of this document.
,This paper consists of 11 pages.
N.B.:
1. This paper consists of EIGHT (8) questions.
2. All questions must be answered.
3. Basic workings, where applicable, must be shown.
4. Ensure that you are handed the correct examination answer book (blue for accounting) by the
invigilator.
5. EACH QUESTION ATTEMPTED MUST START ON A NEW (SEPARATE) PAGE.
6. The required percentage to pass this module is 50%.
PROPOSED TIMETABLE:
Question Subject Marks Time in minutes
1 Multiple Choice Questions (MCQ) 20 24
2 Direct and absorption costing 15 18
3 The activity-based costing (ABC) system 10 12
4 The process costing system 15 18
5 Standard costing 15 18
6 Sensitivity analysis (probabilities) 5 6
7 Nature and behaviour of costs 10 12
8 Sensitivity analysis (decision trees) 10 12
100 120
[TURN OVER]
, 2 MAC2601
Oct/Nov 2013
QUESTION 1 (20 marks)(24 minutes)
Question 1 contains 10 multiple-choice questions of 2 marks each. Simply write down the
number of each multiple-choice question (1.1 up to 1.10) with the letter of the correct option (A,
B, C or D) next to each respective question number.
Question 1.1 is based on the following information:
Abbettery (Pty) Ltd. is a company which build large shopping malls as well as residential
complexes. The company uses the FIFO method of inventory valuation.
The records below relates to the company inventory records for the month of October 2013:
Date Transactions Details
1/10 Opening inventory 150 units @ R6,50
3/10 Purchases 1 200 units @ R6,80
Freight cost paid is 10% of the cost price per unit.
Average exchange rate for the day: ZAR/USD 9.9275
5/10 Issues 800 units
8/10 Returned to supplier 25 units bought on 8/10
1.1
Using the FIFO method of inventory valuation, the value of inventory purchased on 3 October
2013 is: (2)
A. R8 796
B. R8 061
C. R8 976
D. R8 160
1.2
Which one of the following statements is correct about the inventory valuation method used by
Abbettery (Pty) Ltd.? (2)
A. Materials received or purchased first are issued last
B. Materials received or purchased first are issued first
C. Materials with the highest value are issued first
D. Materials with the lowest value are issued last
[TURN OVER]
