Management Accounting Quiz and Assignments

This content includes solved assignments and quizzes on Management Accounting covering topics like contribution margin, break-even point, fixed and variable costs, and cash budgeting. The content also suggests the application of ABC technique for better profitability.

Running Head: Quiz
Management Accounting

Quiz 1
Assignment 1
Par
t a
Group
1
Group
2
Grou
p 3
Group
4 Total
Revenue
12000
00
14000
00
9000
00
16000
00
51000
00
Le
ss Labour cost
40000
0
40000
0
3000
00
50000
0
16000
00
Contributio
n Margin
80000
0
10000
00
6000
00
11000
00
35000
00
Le
ss Overhead
48750
0
48750
0
3656
25
60937
5
19500
00
Profit
31250
0
51250
0
2343
75
49062
5
15500
00
Profitability
percentage 26% 37% 26% 31% 30%
Par
t b
Group
1
Group
2
Grou
p 3
Group
4 Total
Revenue
12000
00
14000
00
9000
00
16000
00
51000
00
Labour cost
40000
0
40000
0
3000
00
50000
0
16000
00
Contributio
n Margin
80000
0
10000
00
6000
00
11000
00
35000
00
Le
ss Overheads
Customer
Investigation
15000
0 90000
2100
00
30000
0
75000
0
After Sales
Services
16000
0
24000
0
8000
0
72000
0
12000
00
Profit
49000
0
67000
0
3100
00 80000
15500
00
Profitability
percentage 41% 48% 34% 5% 30%
Par
t c
Yes the Profitability has changed with the application of
ABC technique
The company must apply ABC technique to Group 1, 2 and 3 but for Group 4 it
must stick to traditional costing method

Quiz 2
Assignment 2
Requirement a
Selling price per kilo (A) 25 Fixed cost
Variable cost per unit (B) 10 Rent 180
Contribution per unit (C) 15 Manager 320
Total fixed cost (D)
57
0
Marketing
cost 50
Contribution Margin (C/A) 0.6 Depreciation 20
BEP in kilos (D/C) 38 Total 570
BEP in revenue (DKK)
95
0
Requirement b
Units (kilos) Sales (DKK) Cost
6 150 630
14 350 710
22 550 790
30 750 870
38 950 950
46 1150 1030
54 1350 1110
62 1550 1190
70 1750 1270
1 2 3 4 5 6 7 8 9
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Break-even point
Sales (DKK) Cost
Sales Units (kilos)
Sales (DKK)

Quiz 3
Requirement c
DKK
Sales (40.000 Kilos)
(A) 1000
Variable cost 400
Fixed cost 570
Total Cost (B) 970
Profit/Loss (A-B) 30
Requirement d
If employee is hired
Fixed cost 570
Add: Wages 225
Total Fixed cost 795
Contribution per unit 15
Contribution Margin 0.6
New BEP (in kilos) 53
New BEP (in revenue) 1325
Requirement e
Units Sales (DKK) Cost
41 615 1205
44 660 1235
47 705 1265
50 750 1295
53 1325 1325
56 1400 1355
59 1475 1385
61 1525 1405
63 1575 1425

Quiz 4
1 2 3 4 5 6 7 8 9
0
200
400
600
800
1000
1200
1400
1600
1800
Break-even point
Sales (DKK) Cost
Units (Kilos)
Sales (DKK)
Requirement f
Option 1: no employee is hired
Contribution margin 0.6
Fixed cost 570
Profit 500
Desired Sales volume (DKK) 1,783
Desired Sales unit (kilos) 71
Option 2: Employee is hired
contribution margin 0.6
Fixed cost 795
Profit 500
Desired Sales volume (DKK) 2,158
Desired Sales unit (kilos) 86
Requirement g
The farmer should not hire the employee as it will increase its total fixed cost by DKK
225.000. He need to pay wages of the same amount which will added up to its expense.
Moreover the break even sales and units both will also increase due to rise in fixed cost.
However, profit remain the same in both the situation, so farmer should not opt for hiring an
employee.
Assignment 3
Part 1
If Carrot is
continued
If carrot is
discontinued

Quiz 5
Sales 140000 0
Variable Costs 80000 0
Contribution
Margin 60000 0
Fixed Costs
Wages 15000 15000
Advertising 20000 20000
Manager's
salary 10000 0
Factory
Overhead 25000 25000
Total Fixed
cost 70000 60000
Operating
profit/loss -10000 -60000
Part 2
Carrots Root Beets
Cabbag
e Total
Sales 140000 400000 300000
84000
0
Variable Costs 80000 150000 100000
33000
0
Contribution
Margin 60000 250000 200000
51000
0
Fixed Costs
Wages 15000 18000 10000 43000
Advertising 20000 40000 35000 95000
Manager's
salary 10000 15000 25000 50000
Factory
Overhead 0 0 0
11000
0
Total Fixed
cost 45000 73000 70000
29800
0
Operating
profit/loss 15000 177000 130000
21200
0
Part c)
Common Fixed cost: These are those type of fixed cost which are allocated to the segments
and continue to sustain in the organization, even if the segment is eliminated. They are just
allocated to the remaining segments (Bromwich & Bhimani, 2005).
Traceable Fixed cost: A type of a cost which has a dire cause and effect relationship with
the product, consumer or any other cost object. This cost will disappear as and when the cost
object goes away.

Quiz 6
Division Margin: The profit earned by each and every division or segment of the business. It
is calculated for better understanding of profitability where the business divides its overall
operations into segments. These segments or divisions produce some revenue and expenses
and then their profit margin is calculated (Horngren, et al., 2002).
Assignment 4
Part
a)
Quarterly Result Budget
Q1 Q2 Q3 Q4 Total
Sales
960000
0
720000
0
960000
0
120000
00
384000
00
Cost of Sales
576000
0
432000
0
576000
0
720000
0
230400
00
Gross Profit
384000
0
288000
0
384000
0
480000
0
153600
00
less Other cost
Variable Cost 480000 360000 480000 600000
192000
0
Fixed Costs excluding Interest
and Deprecation
150000
0
150000
0
150000
0
150000
0
600000
0
Depreciation 500000 500000 500000 500000
200000
0
Interest 100000 100000 100000 100000 400000
Total Expense
258000
0
246000
0
258000
0
270000
0
103200
00
Profits
126000
0 420000
126000
0
210000
0
504000
0
Q-1
Total January February March
Sales 9600000 3200000 3200000 3200000
Collection from
Sales
In same Quarter 4800000 1600000 1600000 1600000
In next Quarter 3200000 1600000 1600000
Total Collections 8000000 1600000 3200000 3200000
Q-2
Total April May June

Quiz 7
Sales 7200000
240000
0 2400000 2400000
Collection from
Sales
In same Quarter 3600000 120000
0
1200000 1200000
In next Quarter 2400000 1200000 1200000
Total Collections 6000000 120000
0
2400000 2400000
Q-3
Total July August September
Sales 9600000 3200000 3200000 3200000
Collection from Sales
In same Quarter 4800000 1600000 1600000 1600000
In next Quarter 3200000 1600000 1600000
Total Collections 8000000 1600000 3200000 3200000
Q-4
Total
Octobe
r
Novemb
er
Decemb
er
Sales
1200000
0
400000
0 4000000 4000000
Collection from
Sales
In same Quarter 6000000
200000
0 2000000 2000000
In next Quarter 4000000 2000000 2000000
Total Collections
1000000
0
200000
0 4000000 4000000
Purchases
Q-1
Total January
Februar
y March
Purchases
720000
0
240000
0 2400000
240000
0
Payment of
Purchases 0 0 0

Quiz 8
Q-2
Total April May June
Purchases
500000
0
166666
7
166666
7
166666
7
Payment of
Purchases
720000
0
240000
0
240000
0
240000
0
Q-3
Total July August
Septembe
r
Purchases
600000
0
200000
0 2000000 2000000
Payment of
Purchases
500000
0
166666
7 1666667 1666667
Q-4
Total October
Novembe
r December
Purchases
600000
0
200000
0 2000000 2000000
Payment of
Purchases
600000
0
200000
0 2000000 2000000
Part
b)
Quarterly Cash Budget
Q1 Q2 Q3 Q4
Opening 770000 6390000 2730000 2850000
Collection from Sales
800000
0 6000000 8000000
1000000
0
Total Available balance
877000
0
1239000
0
1073000
0
1285000
0
Payments
Payment of Purchases 0 7200000 5000000 6000000
Variable Cost 480000 360000 480000 7200000
Fixed Costs excluding Interest and
Deprecation
150000
0 1500000 1500000 1500000
Interest 100000 100000 100000 100000
Investment in assets 300000 500000 800000 1400000
Total Payment
238000
0 9660000 7880000
1620000
0

Quiz 9
Closing Cash Balance
639000
0 2730000 2850000
-
3350000
Part
c) The budgeted cash balance at the year-end 2017 is negative 3350000

Quiz
10
REFERENCES
Bromwich, M., & Bhimani, A. (2005). Management accounting: Pathways to progress. Cima
publishing.
Horngren, C. T., Sundem, G. L., Stratton, W. O., Burgstahler, D., & Schatzberg, J.
(2002). Introduction to Management Accounting: Chapters 1-17. Prentice Hall.