Question 1

1. Explain the basic concepts of accounting, bookkeeping and cost accounting terminology.
2. Systematically recording business transactions in appropriate accounting records.
3. Prepare basic financial statements, management reports and various alternative cost

Question 2

Mobile excellent Sdn Bhd (MESB) produces aircond compressor for a car manufacturer, Expert Holding, with a sales price of RM580 and a variable cost of RM180 per unit. Fixed costs are RM440, 000 per annum. Number of unit sold for year was 1,500 units.

You are required to calculate the following:

a) Contribution / Sales ratio.

b) Number of units to break-even.

c) Sales value at break-even point.

d) Calculate margin of safety in units and value.

e) Number of units to be sold to achieve a profit of RM220,000 per annum

f) Number of units to be sold to achieve a profit of RM220,000 per annum with increasing of 10% total fixed cost

g) Calculate the new break-even in units and value if the total variable cost per unit increases by 15%