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Bac 300 Management Accounting 1 Question Paper
Exam Name: Bac 300 Management Accounting 1
Course: Bachelor Of Commerce
Category: Kenyatta University question papers
UNIVERSITY EXAMINATIONS 2007/2008
INSTITUTE OF OPEN LEARNING
SPECIAL/SUPPLEMENTARY EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
BAC 300: MANAGERIAL ACCOUNTING 1
DATE: Tuesday 7th October, 2008
TIME: 8.00 a.m. – 10.00 a.m.
1. Answer ALL the questions.
2. All questions carry equal marks.
3. Present your answers logically and as completely as possible.
A Company makes and distributes two products A and B. The data relating to the two
products are given as follows:
Marginal cost per unit
Variable costs are allocated to production at 100% of direct wages. Fixed cost for the
period is sh 800. The products are to be produced and fixed in such a way that the
company makes the best benefit. On the basis of the above data, present to management
statements to show,
Marginal product cost and contribution margin per unit.
Total contribution and profits resulting each of the following sales mixes
a) 1000 units of A and 2000 units of B
b) 1500 units of A and 1500 units of B
c) 2000 units of A and 1000 units of B
Explain what is understood by the term “cost”.
State and explain the factors that may qualify a cost to be relevant or irrelevant
How are costs classified for purposes of decision making?
In one period, a company which makes a single product and using FIFO to value its cost
of production and stock of work-in-progress presented the following data and stages of
Opening 200 units @
During the period, 1050 units were produced and 1100 units transferred to the next
Complete the cost sheets and show the process account.
A manufacturing company operates a costing system which showed the following data in
respect of the month of o November, 2007.
Actual number of working days
Actual man hours worked during the month
Number of products produced
Information from the company’s budget and standard cost data are as follows:-
Budgeted number of working hours per month
Budgeted man hours per month
Standard man hours per product
Standard overhead rate per man hour
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