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Question 1 Critically evaluate and discuss the role of Management and Cost accounting in decision making for a business?

Question 2 Outline and explain how cost identification and behaviour is important for the following types of business: High Volume, low margin; and Low volume, high margin. Explain which of the above will be more concerned with identifying variable costs and which will be more concerned with covering fixed costs?

Question 3 The Aldorf Wastoria. The Financial Manager of Aldorf Wastoria has prepared the following flexed budget for 2023. The Aldorf is a large hotel, which can provide up to a maximum of 22,000 guest nights per year. Capacity No of Guests 15,400 17,600 19,800 Direct Costs 231,000 264,000 297,000 Selling overhead 1,318,800 1,338,600 1,358,400 Administration overhead 900,000 900,000 900,000 Total Cost 2,449,800 2,502,600 2,555,400 Due to the recent poor weather, the Sales Manager has suggested that 15,000 guests is a more realistic target for 2023. Based on this, what are the expected total costs for 2023?

Question 4 Mohammed is concerned about the cost of his current mobile phone bills. He has not kept his bills, but has kept all his monthly mobile phone expenditure on a spreadsheet: Month No of Calls Cost incurred: January 180 36.60 February 245 41.15 March 210 38.70 April 200 38.00 May 175 36.25 June 195 37.65 Mohammed estimates to make 230 calls to his friends in July. Required: With all tariffs remaining the same, using the high-low method calculate the total mobile phone cost for July

Question 5 Bird Ltd makes 3 types of products: Pidgeon, Dove and Sparrow. Extracts from the budget for the next year are as follows: Pidgeon Dove Sparrow Demand and production (units) 1,000 1,500 2,000 The following information is per unit of each product Per unit Pidgeon Dove Sparrow Selling price 87 170 154 Materials 15 40 30 Labour 20 50 40 Variable overhead 12 30 24 Labour will be paid at 5 per hour The company expects the total fixed cost budget to be 120,000 Required: It has now been realised that there will only be 30,000 labour hours available next year. Calculate the production plan that will maximise profit for Bird Ltd for the next year. State what that plan will be (All workings must be shown)

Question 6 Shawarma Food Ltd uses a standard marginal costing system. Details for one of its products, Shawarma Chicken Soup, are as follows: Standard per Batch of Shawarma Chicken Soup Selling Price 60 Materials 4 Kg @ 8 per Kg 32 Labour 2 hours @ 5 per hour 10 Gross Profit 18 The budgeted output and sales for the period were 6,000 batches of Shawarma Chicken Soup. Actual Results for the month just ended were as follows: Output: 6,500 batches were produced and sold. Turnover: 312,000 Materials: the total cost of the 27,000 Kgs purchased and used was 184,000. Labour: the workers were paid a total of 71,000 for working 13,750 hours. Part (a) Calculate the following variances: Sales Price Sales Volume Overall Material Variance Material price Material usage Overall Labour Variance Labour rate Labour efficiency (16 marks) Part (b) Suggest possible reasons for the following variances that you have calculated: Sales Price Material Usage Labour Efficiency (9 marks) Question 6 total:

Question 7 A) When comparing actual results with the forecast/budget, evaluate and explain why it is necessary to flex the budget for the actual output? (5 marks) B) What is meant by the term margin of safety when calculating the break even point for a product? Is this the same as the profit margin?