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1. Explain the relationship of management accounting to cost accounting and financial accounting (6 marks)
2. Demonstrate the three elements of cost and their relationship to each other (3 marks)
3. You are given the following data for the year 2016 of XYZ Co. Limited

Variable cost 600,000

Fixed cost 300000

Net profit 100,000

1000,000

Required, Find out:

1. Break-even point (3 marks)
2. P/V ratio (3 marks)
3. Margin of safety (3 marks)
4. Explain the main differences between forecast and budget (6 marks)
5. The following information has been made available from the records of Precision Tools Limited for the six months of 2020 (and the sales of January 2021) in respect of product X
6. The units to be sold in different months are:

July 2020 1,100 November 2020 2,500

August 2020 1,100 December 2020 2,300

September 2020 1,700 January 2021 2,000

October 2020 1,900

1. There will be no work-in-progress at the end of any month
2. Finished units equal to half the sales of the next month will be in stock at the end of every month (including June 2020)
3. Budgeted production and production cost for the year ending 31^st December 2020 are thus:

Production (units) 22,000

Direct materials per unit Shs. 10

Direct wages per unit Shs. 4

1. Total factory overheads apportioned to production Shs. 88,000

Required:

1. Production budget for the six months of 2020 (8 marks)
2. Summarized production cost budget for the same period (8 marks)

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