Scribd Logo
Upload

Welcome to Scribd!

  • 124 views

    BAC814: Management Accounting: Discussion Questions

    Uploaded by

    Jotham Munala
    Management accounting emerged to provide information to managers for planning and control purposes, as financial accounting focuses on external reporting. Management accounting differs from financial accounting in its focus, users, and timeliness of information. Cost refers to the amount of expenditure required to produce a product or deliver a service. This document provides discussion questions related to management accounting concepts like cost types, cost behavior, break-even analysis, and process costing.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    BAC814: Management Accounting: Discussion Questions

    Uploaded by

    Jotham Munala
    124 views3 pages
    Management accounting emerged to provide information to managers for planning and control purposes, as financial accounting focuses on external reporting. Management accounting differs from financial accounting in its focus, users, and timeliness of information. Cost refers to the amount of expenditure required to produce a product or deliver a service. This document provides discussion questions related to management accounting concepts like cost types, cost behavior, break-even analysis, and process costing.

    Original Title

    BAC 814

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Management accounting emerged to provide information to managers for planning and control purposes, as financial accounting focuses on external reporting. Management accounting differs from financial accounting in its focus, users, and timeliness of information. Cost refers to the amount of expenditure required to produce a product or deliver a service. This document provides discussion questions related to management accounting concepts like cost types, cost behavior, break-even analysis, and process costing.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    124 views3 pages

    BAC814: Management Accounting: Discussion Questions

    Uploaded by

    Jotham Munala
    Management accounting emerged to provide information to managers for planning and control purposes, as financial accounting focuses on external reporting. Management accounting differs from financial accounting in its focus, users, and timeliness of information. Cost refers to the amount of expenditure required to produce a product or deliver a service. This document provides discussion questions related to management accounting concepts like cost types, cost behavior, break-even analysis, and process costing.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    BAC814: Management Accounting

    Discussion Questions

    Question 1
    Why did management accounting emerge?
    Question 2
    What are the differences between management accounting and financial accounting
    Question 3
    Explain what is meant by the term cost.
    Question 4
    The following production and cost data were extracted from the records of a firm:
    Period Units Sh.
    Previous 50,000 1,700,000
    Current 54,000 1,835,400
    Between Previous and current periods there was 5% cost inflation.
    a) Calculate the real fixed cost
    b) Estimate what the total cost would be in the subsequent period.
    Question 5
    A company makes 20,000 units of a product when operating at full capacity. The unit cost
    break-down at full capacity include: Material sh 6.50, Labour 3.30.Variable overheads 2.60
    and fixed operating overheads 4.00.The selling price of the product is sh. 20 with a variable
    administrative and selling expense of 60 cents. Management proposes to shut-down the plant
    because in the following periods the company will be able to make and sell only 2,000 units.
    With the plant shut-down, the fixed overheads are expected to reduce to sh 45,000 although
    there will be additional shut-down costs of sh 15,000. Should the plant be shut-down? If so
    what is the shut-down point?
    Question 5
    The sales mix of a manufacturer for its four brands are provided as follows;
    Brand percentage operating costs as % of sales fixed cost/month
    A 34 60
    B 42 68
    C 16 80
    D 8 40
    Total 100 sh 159,000
    Sales per month sh 600,000
    Compute the company’s break- even point.
    Question 6
    Moto Moto plc manufactures a product whereby process costing is followed and work in
    process inventory is valued on the basis of first in first out method. At the start of a month WIP
    record showed 400 units which were 40% complete. The valuation was sh 3,600 for material.
    Labour and overheads were sh. 3,400 and sh. 1,000respectively.
    During the month material were bought for sh. 75,000. Wages and overheads amounted to sh.
    79,800 and sh. 21,280 respectively. Material issued to production was sh. 68,500. At the end of
    the month 2,500 units were sent to stores and WIP inventory was 500 units with level of
    completion as; material 80% and labour and overheads 60%.
    Required: Show process account.

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy