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END-OF-YEAR EXAMINATIONS 20XX
Sample Examination paper
ACCG301 Organisational Planning and Control
Time Allowed: 3 Hours (plus 10 minutes reading time)
Total Number of Questions: 10
All questions are to be answered directly onto the examination paper. This examination consists of 17 pages, excluding the cover page.
No dictionaries permitted.
Non-programmable calculators (no text retrieval capacity) permitted.
The objective of the sample examination and the revision materials therein is to assist students in their preparation for the final examination. The sample examination is therefore similar in format to the final examination. However, questions and topics in the final examination may be different, so students should also revise all other learning materials, such as, lecture notes and tutorial exercises, and importantly review the learning outcomes that are stated in the unit guide.
(a) For each of the following activities, explain which of the objectives of management accounting is involved, that is, planning, controlling and providing information for decision making (in some cases, several objectives may be involved): (5 Marks) 1.
Developing a bonus reward system for the managers of the various offices run by a large travel agency.
Comparing the actual and planned cost of a consulting engagement completed by an engineering firm.
Determining the cost of manufacturing a piano.
Measuring the cost of the inventory of stereos on hand in a retail electronics store.
Estimating the annual operating cost of a newly proposed branch store.
Measuring the following costs incurred during one month in a hotel owned by a national hospitality industry firm:
Wages of table-service personnel.
1. Development of a bonus reward system for management personnel is an example of motivating managers toward the organisation’s goals, which is part of the objective of control. To be effective, the bonus system must provide incentives for managers to work towards achieving those goals.
2. Comparison of actual and planned costs is part of the objective of assisting managers in controlling operations.
3. Determination of manufacturing costs is related to all three objectives of management accounting. It is especially closely related to the objectives of planning and providing managers with information for decision making.
4. Measurement of inventory costs is most closely associated with the objectives of: (a) providing managers with information for decision making and (b) assisting managers in controlling operations. Since inventory costs are also used in external financial reports, they are also relevant to measuring the performance of managers and subunits within the organisation.
5. Cost estimation is particularly relevant to the objectives of planning and providing managers with information for decision making.
6. Measurement of operating costs is relevant to all three objectives of management accounting activity.
(b) Describe four important differences between management accounting and financial accounting. (5 Marks)
The important differences between management accounting and financial accounting are listed below:
Management accounting information is provided to managers within the...
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