Question One
Allocated Mark ( 10 marks)
a) Critically explain the differences between Managerial Accounting and Financial Accounting
(5 MARKS)
b) What are the benefits of Cost Recognition (List down) (5 MARKS)
Answer
Student Mark:
Page 1 of 5
Question Two
Answer the following questions using the information below:
Allocated Mark ( 10 )
Beginning finished goods, 1/1/2022 $ 40,000
Ending finished goods, 12/31/2022 35,000
Cost of goods sold
300,000
Sales revenue 700,000
Operating expenses 120,000
Required:
1) What is cost of goods manufactured for 2022? (3 MARKS)
2) What is gross margin for 2022? (3 MARKS)
3) What is operating income for 2022? (4 MARKS)
Answer
Page 2 of 5
Question Three
Allocated Mark ( 10 )
The Western Company presents the production and cost data for the first six months of the 2022.
Month
Units produced
Mixed costs ($)
January
15000
45000
February
18000
56000
March
22000
60000
April
16000
48000
May
30000
75000
June
32000
62000
Required
1- List down the methods that are commonly used to separate mixed cost components
(2 MARKS)
Using the high-low point method, determine the followings:
2- Estimated variable cost rate. (3 MARKS)
3- Fixed cost. (3 MARKS)
4- Also determine the cost function based on data given above. (2 MARK)
Answer
Page 3 of 5
Student Mark:
Page 4 of 5
Question Four
Allocated Mark ( 10 )
Loren Company’s single product has a selling price of $15 per unit. Last year the company
reported variable expenses per unit of $9, fixed expenses of $90,000, and a net operating income
of $30,000.
Required:
1- What are the business applications Cost-Volume-Profit VP analysis? (list down and
explain) (5 MARKS)
2- Compute the number of unit sales to achieve the mentioned net operating income
($30,000). (5 MARKS)
Answer
Student Mark:
Page 5 of 5

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