Question 1

Differentiate between line managers and staff managers. (10 marks)

Question 2

There are several different methods for estimating costs. Differentiate between account analysis method and quantitative analysis method.(10 marks)

Question 3

Describe the three (3) criteria which are often used to evaluate cost drivers. (10 marks)

Question 4

In order to produce accurate job costing, the accountant has to be systematic in his approach.

a. List the to produce accurate job costing, the accountant has to be systematic in his approach (7 marks)

b. Briefly explain why job costing has to be performed in a systematic manner (3 marks)

Question 5

Explain how budget slack is detrimental to an organization. (10 marks)

Question 6

The following information pertains to Ko Wei Sdn Bhd

Month	Sales	Purchases
	RM	RM
July	30,000	10,000
August	34,000	12,000
September	38,000	14,000
October	42,000	16,000
November	48,000	18,000
December	60,000	20,000

Cash is collected from customers in the following manner:

Month of sale (2% cash discount)	30%
Month following sale	50%
Two months following sale	15%

Amount uncollectible

5%

40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.

Required:

(a)Prepare a summary of cash collections for the 4th quarter.[10 marks]

(b)Prepare a summary of cash disbursements for the 4th quarter. [7 marks]

(c)Explain the difference between a static budget and a flexible budget. (6 marks]

(d)Explain what is meant by a static budget variance and a flexible budget variance. (7marks]

(e) Explain the three (3) advantages of budgets serving as primary management control tools.[12 marks]

(f) Provide the benefits Activity Based Budgeting brings to a company. (7 marks)