MAC3701
Together We Pass
Exam Pack 2021
Written by Godfrey
www.togetherwepass.co.za
,Welcome
Welcome to your MAC3701 exam pack, which is a compilation of questions from past examination
papers as well as solutions to the questions. I hope that the content inside this pack will help you
in achieving top marks for your upcoming exam good luck.
© 2021 Together We Pass. All rights reserved.
2
,Table of Contents
Welcome ............................................................................................................................................... 2
Oct/Nov 2020 ....................................................................................................................................... 4
May/June 2020 ................................................................................................................................... 11
May/June 2019 ................................................................................................................................... 15
Oct/Nov 2017 ..................................................................................................................................... 20
May/June 2017 ................................................................................................................................... 28
© 2021 Together We Pass. All rights reserved.
3
, MAC3701 Application of Management
Accounting Techniques
Oct/Nov 2020 Suggested Solutions
QUESTION 1
a) Two useful functions of budgets
1. Budgets Compel Planning:
The budgets enable the divisional managers to plan what they expect in future as it is uncertain
what the future holds and enables to make alternatives when such factors occur.
2. Budgets Improve Coordination and communication
It enables the divisional managers to coordinate their division activities and departments, to one
objective and planned outcome as well smooth communication between departments in
execution of their different activities.
b) Two business risks of Disease -Div
Economic Risk- The failure to meet future demand in summers months means opportunity lost
to get revenue, thus affecting its cash flows in the near cold months where demand will be low
while costs remain the same.
Reputation Risk– if the business of Disease –Div cannot meet the demand, it may suffer from
reputation risk, where customers are no longer confident to meet it needs, thereby customers
look for alternative suppliers in the near future, thereby loosing trust and future sales.
c)
1. Budgeted EOQ of Dark brown glass bottles
2. Budgeted re-order point for dark brown glass bottles.
=safety stock+ (lead time x usage per day)
=(4x260) +(2x260)
=1040+520
=1560 units
d)
© 2021 Together We Pass. All rights reserved.
4
Together We Pass
Exam Pack 2021
Written by Godfrey
www.togetherwepass.co.za
,Welcome
Welcome to your MAC3701 exam pack, which is a compilation of questions from past examination
papers as well as solutions to the questions. I hope that the content inside this pack will help you
in achieving top marks for your upcoming exam good luck.
© 2021 Together We Pass. All rights reserved.
2
,Table of Contents
Welcome ............................................................................................................................................... 2
Oct/Nov 2020 ....................................................................................................................................... 4
May/June 2020 ................................................................................................................................... 11
May/June 2019 ................................................................................................................................... 15
Oct/Nov 2017 ..................................................................................................................................... 20
May/June 2017 ................................................................................................................................... 28
© 2021 Together We Pass. All rights reserved.
3
, MAC3701 Application of Management
Accounting Techniques
Oct/Nov 2020 Suggested Solutions
QUESTION 1
a) Two useful functions of budgets
1. Budgets Compel Planning:
The budgets enable the divisional managers to plan what they expect in future as it is uncertain
what the future holds and enables to make alternatives when such factors occur.
2. Budgets Improve Coordination and communication
It enables the divisional managers to coordinate their division activities and departments, to one
objective and planned outcome as well smooth communication between departments in
execution of their different activities.
b) Two business risks of Disease -Div
Economic Risk- The failure to meet future demand in summers months means opportunity lost
to get revenue, thus affecting its cash flows in the near cold months where demand will be low
while costs remain the same.
Reputation Risk– if the business of Disease –Div cannot meet the demand, it may suffer from
reputation risk, where customers are no longer confident to meet it needs, thereby customers
look for alternative suppliers in the near future, thereby loosing trust and future sales.
c)
1. Budgeted EOQ of Dark brown glass bottles
2. Budgeted re-order point for dark brown glass bottles.
=safety stock+ (lead time x usage per day)
=(4x260) +(2x260)
=1040+520
=1560 units
d)
© 2021 Together We Pass. All rights reserved.
4
