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Diploma In Accountancy: Management Accounting Exam Year 2 Question Paper

Diploma In Accountancy: Management Accounting Exam Year 2

Course:Diploma In Accountancy

Institution: Machakos University question papers

Exam Year:2012

DIPLOMA IN COOPERATIVE/ ACCOUNTANCY YEAR 2
MANAGEMENT ACCOUNTING

INSTRUCTIONS
Answer any 4 questions

Question one
(a) Define the term management accounting

b) Explain the major differences between managerial accounting and financial accounting.
(25 marks)

Question two
Explain the following terms:
i) Planning
ii) Organizing
iii) Controlling
iv) Co–ordinating

(25 marks)

Question three
Explain the problems associated with cost classification.
(25 marks)

Question four
The following information shows the number of students and the cost of maintaining them at a medical university.

2007-------Number of students-----------Total cost Sh
July--------650---------------------17, 125, 000
August------940---------------------17, 800, 000
September---1260-------------------18, 650, 000
October-----990-------------------17, 980, 000
November---1150-------------------18, 360, 000

The university uses the high – low method to estimate costs.

Required:
i) variable cost per unit
ii) Fixed costs for the period
iii) The cost of maintaining 850 students in December 2007.
(25 marks)

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