DAC2202 Final Examination 2024 (OCT/NOV) ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)...........
, FACULTY OF COMMERCE DEPARTMENT OF ACCOUNTING AND FINANCE
BACHELOR OF COMMERCE BANKING AND FINANCE /
ENTREPRENEURSHIP MANAGEMENT ACCOUNTING (DAC2202)
FINAL EXAMINATION
DURATION: 2 HOURS
START: HOURS
DATE: 2024
TOTAL MARKS: 100
SECTION A [40 MARKS]
ANSWER ALL QUESTIONS IN THIS SECTION
1. Explain any three (3) types of responsibility centres in Management
Accounting.
(6 Marks)
In management accounting, there are different types of responsibility centres that help
businesses track performance. These centres are created to make it easier for
managers to monitor and control costs, revenues, and other financial aspects of their
departments. Here are three common types:
Cost Centre: This is a part of the business where the focus is mainly on
controlling costs. The manager of a cost centre is responsible for keeping
expenses within a set budget but is not directly responsible for generating
revenue. For example, the maintenance department in a factory would be a cost
centre because it doesn’t earn revenue but incurs expenses.
Revenue Centre: In a revenue centre, the manager is responsible for generating
income or revenue. However, they usually do not have control over the costs,
, especially production costs. A good example is the sales department, where the
main focus is to increase revenue through sales.
Profit Centre: A profit centre is a department or section of a business that is
responsible for both generating revenue and controlling its own costs. The
manager of a profit centre is accountable for ensuring that the revenue exceeds
the costs, making this centre crucial for the company’s profitability. A restaurant
within a hotel, where both revenue from food sales and costs of operation are
controlled, can be considered a profit centre.
2. CCC (Pty) Ltd has established a marginal costing profit of P72,300. Opening
inventory was 350 units and closing inventory was 620 units. The fixed
production overhead absorption rate has been calculated as P5 per unit.
Determine the profit under absorption costing.
(4 Marks)
To calculate the profit under absorption costing, we need to adjust the profit from
marginal costing by the change in inventory and the fixed production overhead
absorption rate.
1. First, we find the change in inventory:
o Closing inventory: 620 units
o Opening inventory: 350 units
o Change in inventory = 620 - 350 = 270 units (increase)
2. Then, we multiply the change in inventory by the fixed production overhead
absorption rate of P5 per unit:
o 270 units × P5 = P1,350
3. Since inventory increased, the profit under absorption costing will be higher.
Therefore:
o Marginal costing profit: P72,300
o Absorption costing profit = P72,300 + P1,350 = P73,650
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LIBRARYpro. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.71. You're not tied to anything after your purchase.
