Managerial Accounting and Finance - Desklib

Managerial Accounting
and Finance

Table of Contents
Main Body.......................................................................................................................................3
SECTION A.....................................................................................................................................3
Answer A1..............................................................................................................................3
ANSWER A2.........................................................................................................................3
Answer A3..............................................................................................................................3
Answer A4..............................................................................................................................3
Answer A5..............................................................................................................................3
Answer A6..............................................................................................................................3
Answer A7..............................................................................................................................3
Answer A8..............................................................................................................................3
Answer A9..............................................................................................................................3
Answer A10............................................................................................................................3
Answer A 11...........................................................................................................................4
Answer A12............................................................................................................................4
Answer A13............................................................................................................................4
Section B..........................................................................................................................................4
Question B1.....................................................................................................................................4
a. Using the traditional system, determine the operating profit per unit for the product X. . .4
b Determine the activity-cost-driver rate for setup costs and inspection costs......................5
Question B2.....................................................................................................................................5
a. discuss the main differences between traditional absorption costing and activity-based costing
................................................................................................................................................5
Question B3.....................................................................................................................................6
a) Compute the payback period and state which project should be selected..........................6
b) Compute the Net present value and state which project should be selected......................7
c. Which project should be selected from the above calculations..........................................8
d. State the advantages and disadvantages of NPV and IRR.................................................8

Main Body
SECTION A
Answer A1
(A) Bankers
ANSWER A2
( C) Actual figures
Answer A3
(B) Increase in Tariff
Answer A4
Managerial accountants prepare the financial statements for an organization
Answer A5
The budget for this year indicated a small increase in profits compared to last year’s actual
results and this target was achieved
Answer A6
( B) £22.81
Answer A7
(D) £128,000
Answer A8
(a) £14.82
Answer A9
(d). £105,000
Answer A10
(b) 8.7%