MA Final Exam JULY 2014 2

BINARY COLLEGE

DIPLOMA IN BUSINESS ADMINISTRATION (DBA)

DIPLOMA IN ACCOUNTING (DIA)

MANAGEMENT ACCOUNTING

FINAL EXAM

60%

DATE :

SUBJECT :

COURSE :
( DBA, DIA)

I.C. NO. / PASSPORT NO. :

NAME :

MANAGEMENT ACCOUNTING (DIA) (DBA)

SECTION A

ANSWER THE QUESTION IN THIS SECTION (COMPULSORY). [TOTAL 20 MARKS]

EXPLAIN THE MEANING OF EACH OF THE FOLLOWING TERMS :

1. Standard cost [2 marks]

2. Sunk costs [2 marks]

3. Opportunity cost. [2 marks]

4. Cost Centre [2 marks]

5. Cost of Capital [2 marks]

6. Overheads Allocation [2 marks]

7. Over-recovery (absorption) of overheads [2 marks]

8. Budgetary Control [2 marks]

9. Payback Period [2 marks]

10. Favourable material usage variance (F) [2 marks]

SECTION B

ANSWER QUESTION 1 (COMPULSORY) AND ANY OTHER THREE (3) QUESTIONS
IN THIS SECTION. [TOTAL 80 MARKS]

QUESTION 1

NET Ltd is currently selling three products which pass through the same

production departments during manufacture. The production manager estimates

that, in the next week, he will have only 14,000 kilos of a material, which all products

use in manufacture in the following quantities :

E 4 kilos per unit

H 3 kilos per unit

K 2 kilos per unit

The sales demand of each product during the period is given below :

1,000 units of E

2,000 units of H

3,000 units of K