Past Year Mid Sem Solution
SURNAME OF CANDIDATE: FIRST NAME OF CANDIDATE: STUDENT ID: LECTURE TIME: TUTORIAL NUMBER AND TIME: TUTOR’S NAME: SIGNATURE:
Q 1
Mark
2
3
Total
SCHOOL OF ACCOUNTING
ACCT 2522 Management Accounting: Process Improvement and Innovation Past Year Mid-Session Examination
Time allowed: 90 minutes, plus 5 minutes reading time Total of 50 marks • • • • • • • The candidate may NOT retain this paper This exam represents 25% of your total mark for this course This paper consists of THREE (3) questions of unequal value Answers must be written on the lines or in the boxed area provided – any other writing will NOT be marked. Answers are to be written in ink Answer ALL questions Some spare pages have been left for y our rough workings at the end of the pap er. Workings on these pages will not be marked. Do not detach.
DO NOT OPEN THIS PAPER UNTIL INSTRUCTED BY THE EXAM SUPERVISOR
1
Question 1 (10 marks)
Mercury A sbestos Re moval Company Ltd is in the busi ness of rem oving toxic asbestos insulation and related products from buildings. There has been an on going dispute between the company’s estimator and the work supervisors. Mr Dennis Clean, the on-site supervisor, claims that the e stimators do not tak e enough care in disti nguishing between routin e wo rk such as the removal of a sbestos insulation a round heating pipes i n older homes, and nonroutine work such as the removal of asbestos-contaminated ce iling pla ster in industrial buildings. Dennis bel ieves that non-routine work i s far more expensive th an routine work and should attract higher customer charges. Mr Jonas Ca ble, one of the esti mators, su ms u p his position in this wa y: “M y job is to measure the area to b e cleared of asbe stos. As directed by top management, I simply multiply each square metre by $20.00 to deter mine the bid price. S ince our average cost is only $11.00 pe r square metre, that leaves enoug h of a cushion to take care of the additional cost of any
Q 1
Mark
2
3
Total
SCHOOL OF ACCOUNTING
ACCT 2522 Management Accounting: Process Improvement and Innovation Past Year Mid-Session Examination
Time allowed: 90 minutes, plus 5 minutes reading time Total of 50 marks • • • • • • • The candidate may NOT retain this paper This exam represents 25% of your total mark for this course This paper consists of THREE (3) questions of unequal value Answers must be written on the lines or in the boxed area provided – any other writing will NOT be marked. Answers are to be written in ink Answer ALL questions Some spare pages have been left for y our rough workings at the end of the pap er. Workings on these pages will not be marked. Do not detach.
DO NOT OPEN THIS PAPER UNTIL INSTRUCTED BY THE EXAM SUPERVISOR
1
Question 1 (10 marks)
Mercury A sbestos Re moval Company Ltd is in the busi ness of rem oving toxic asbestos insulation and related products from buildings. There has been an on going dispute between the company’s estimator and the work supervisors. Mr Dennis Clean, the on-site supervisor, claims that the e stimators do not tak e enough care in disti nguishing between routin e wo rk such as the removal of a sbestos insulation a round heating pipes i n older homes, and nonroutine work such as the removal of asbestos-contaminated ce iling pla ster in industrial buildings. Dennis bel ieves that non-routine work i s far more expensive th an routine work and should attract higher customer charges. Mr Jonas Ca ble, one of the esti mators, su ms u p his position in this wa y: “M y job is to measure the area to b e cleared of asbe stos. As directed by top management, I simply multiply each square metre by $20.00 to deter mine the bid price. S ince our average cost is only $11.00 pe r square metre, that leaves enoug h of a cushion to take care of the additional cost of any