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Dac 406: Contemporary Issues In Management Accounting Question Paper

Dac 406: Contemporary Issues In Management Accounting

Course:Bachelor Of Commerce

Institution: University Of Nairobi question papers

Exam Year:2012

INSTRUCTIONS
1. Attempt ALL Questions.
2. Be neat and clear in your workings.
3. Marks are shown at the end of each question.

QUESTION ONE
(a) Briefly discuss the historical development of Management Accounting. (20 marks)

(b) What do we mean by the term 'Strategy' as used in Management Accounting? What is the management accountant's role in formulating strategy? (5 marks)

QUESTION TWO
(a) Distinguish between the features of a traditional Management Accounting Control System and Cost Management. (8 marks)

(b) Explain life-cycle costing and describe the pattern of Cost Commitment and Cost Incurrence during the three stages of a Product's Life Cycle. (11 marks)

(c) Distinguish between Target Costing and Kaizen Costing. (6 marks)

QUESTION THREE
(a) Describe Activity-Based Cost management. (10 marks)

(b) Identify and explain each of the FOUR stages involved in designing ABC Systems. (15 marks)

QUESTION FOUR
(a) Outline the main features of a Just-in-Time Philosophy. (16 marks)

(b) Purity Co. Ltd bottles and distributes mineral water from the company's natural springs in Nothern Oregon. Purity makes two products: 12-ounce disposable plastic bottles and 4-gallon reusable plastic containers.

Required;
(i) For 2013, Purity marketing managers project monthly sales of 400,000 12-ounce bottles and 100,000 4-gallon containers. Average selling prices are estimated at Shs 0.25 per 12-ounce bottle and Shs 1.50 per 4-gallon container. Prepare a Revenue Budget for Purity Co. Ltd for the year ending December 31, 2013.

(ii) Purity begins 2013 with 900,000 12-ounce bottles in inventory. The General Manager of Operations requests that 12-ounce bottles ending inventory on December 31, 2013 be no less than 600,000 bottles. Based on Sales Projections as budgeted above, what is the minimum number of 12-ounce bottles Purity must produce during 2013?

(iii) The Assisstant General Manager of Operations requests that ending inventory of 4-gallons containers on December 31, 2013 be 200,000 units. If the production budget calls for Purity to produce 1,300,000 4-gallon containers during 2013, what is the beginning inventory of 4-gallon containers on January 1, 2013? (9 marks)

Dac 406: Contemporary Issues In Management Accounting Question Paper

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