CPA
Advanced Leval
Advanced Management Accounting November 2016
Suggested solutions
Revision Kit
➧ | Advanced Management Accounting-September-2015-Pilot-Paper |
➧ | Advanced Management Accounting-November-2015-Past-Paper |
➧ | Advanced Management accounting-May-2016-Past-paper |
➧ | Advanced Management Accounting-November-2016-Past-Paper |
➧ | Advanced Management Accounting-November-2017-Past-paper |
➧ | Advanced Management accounting-May-2017-Past-paper |
➧ | Advanced Management Accounting-November-2018-Past-paper |
➧ | Advanced Management accounting-May-2018-Past-paper |
➧ | Advanced Management accounting-May-2019-Past-paper |
➧ | Advanced Management Accounting-November-2019-Past-paper |
➧ | Advanced Management Accounting-November-2020-Past-paper |
➧ | Advanced Management Accounting-December-2021-Past-paper |
➧ | Advanced Management Accounting-April-2021-Past-paper |
➧ | Advanced Management Accounting-August-2021-Past-paper |
QUESTION 1a
Conduct a thorough assessment of the company's current environmental impact. Identify areas where the business can reduce its negative effects on the environment.
Establish specific, measurable, and time-bound environmental goals. These goals could include reducing energy consumption, minimizing waste generation, or decreasing carbon emissions.
Implement energy-efficient technologies and practices. This can involve using renewable energy sources, improving insulation, and optimizing heating, ventilation, and air conditioning (HVAC) systems.
Implement waste reduction strategies and promote recycling within the organization. Encourage employees to reduce, reuse, and recycle materials. Establish partnerships with recycling facilities to dispose of waste responsibly.
Collaborate with suppliers and ensure they adhere to sustainable and ethical practices. Evaluate and choose suppliers based on their environmental performance and work towards creating a sustainable supply chain.
Innovate and develop products that are environmentally friendly. Consider using recycled materials, reducing packaging waste, and ensuring that the entire product lifecycle has a minimal impact on the environment.
Implement water-saving technologies and practices. Monitor and reduce water consumption within the business operations and encourage water conservation among employees.
Conduct training sessions to raise awareness among employees about environmental issues. Encourage them to adopt eco-friendly practices both at work and in their personal lives.
Develop and implement environmental policies that guide the company's commitment to sustainability. Consider obtaining environmental certifications to demonstrate compliance with recognized standards.
Integrate environmental initiatives into the company's CSR programs. Communicate the company's commitment to environmental responsibility transparently to customers, employees, and stakeholders.
Stay informed about environmental regulations and comply with them. Proactively engage with regulatory bodies to ensure that the company's operations align with current and future environmental standards.
Regularly monitor and evaluate the environmental performance of the business. Implement reporting mechanisms to communicate progress to stakeholders and the public.
QUESTION 1b
Standard Analysis | |||
Group
Skilled semiskilled Unskilled |
Number 30 15 10 |
Rate 80 60 40 |
Amount 2,400 900 400 3,700 |
Actual cost Analysis | ||||
Group
Skilled semiskilled Unskilled |
Number 40 10 5 |
Rate 70 65 30 |
Hours 40 40 40 |
Amount 112,000 26,000 6,000 144,000 |
Actual hours | |||
Skilled
semiskilled Unskilled |
40 × 40
10 × 40 5 × 40 55 |
= 1,600
= 400 = 200 2,200 |
Standard hours for actual production | |||
Group
Skilled semiskilled Unskilled |
Number 30 15 10 |
Weekly loan 32 32 32 |
Total hours required 960 480 320 |
Skilled Semiskilled Unskilled |
(80 - 70)1,600 (60 - 65)400 (40 - 30)200 |
16,000F 2,000A 2,000F 16,000F |
Skilled Semiskilled Unskilled |
(960 - 1,600)80 (480 - 400)60 (320 - 200)40 |
51,200A 4,800F 4,800F 41,600A |
Skilled:-Standard mix -Actual mix Semi-skilled = Std mix Actual Unskilled=std mix -Actual mix Skilled Semiskilled Unskilled |
1980 x 6/11 = 1080 x 80 40 x 36 = 1,440 x 80 1980 x 3 / 11 = 540 x 60 10 x 36 = 360 x 60 1980 x 2 / 11 = 360 x 40 5 x 36 = 180 x 40 = 86,400 - 115,200 = 32,400 - 21,600 = 14,400 - 7,200 |
= 86,400 115,200 = 32,400 = 21,600 = 14,400 = 7,200 = 28,800 = 10,800F = 7,200F 10,800A |
Skilled Semiskilled Unskilled |
(40 x 4)80 (10 x 4)60 (5 x 4)40 |
= 12,800A 2,400A 800A 16,000A |
QUESTION 2a
Analysis table | |||
Demand (x) (300 + 399) ÷ 2 = 350 (400 + 499) ÷ 2 = 450 (500 + 599) ÷ 2 = 550 (600 + 699) ÷ 2 = 650 (700 + 799) ÷ 2 = 750 (800 + 899) ÷ 2 = 850 (900 + 999) ÷ 2 = 950 |
Prob (p)
0 ÷ 86 = 0.00 16 ÷ 86 = 0.19 20 ÷ 86 = 0.23 25 ÷ 86 = 0.29 14 ÷ 86 = 0.16 8 ÷ 86 = 0.09 3 ÷ 86 = 0.03 |
x̄=xp
0.0 85.5 126.5 188.5 120.0 76.5 28.5 626.0 |
δ=√ε(x-x)2 prob
(350 - 626)² 0 = 0 (450 - 626)² 0.19 = 5,885 (550 - 626)² 0.23 = 1,328 (650 - 626)² 0.29 = 167 (750 - 626)² 0.16 = 2,460 (850 - 626)² 0.09 = 4,516 (950 - 626)² 0.03 = 3.149 √17,505 |
QUESTION 2b
Analysis schedule Material cost Labour cost (1600 × 15,000) overhead cost (50% × 24,000) Total cost Markup = (25% × 61,000) Selling price |
Sh."000" 25,000 24,000 12,000 61,000 15,250 76,250 |
Analysis table Material cost(25,000 x 2) Labour cost overhead cost (50% × 43,200) Total cost Markup = (25% × 114,800) Selling price |
Sh."000" 50,000 43,200 21,600 114,800 28,700 143,500 |
QUESTION 3a
Sh 150 | Sh 240 | |||||
Selling price Material cost (2 × 40) Labour& variables cost CM per unit |
No
Contract 150 (80) (50) 20 |
Contract 40,000 150 (75) (50) 25 |
Contract 60,000 150 (70) (50) 30 |
No
Contract 240 (80) (50) 110 |
Contract 40,000 240 (75) (50) 115 |
Contract 60,000 240 (70) (50) 120 |
Realizable value on sale of excess material | ||
Selling price Less P: selling cost (3 + 4.5 + 1.5) Realisable value |
More than 16,000kg 29 (9) 20 |
Less than 16,000kg 24 (9) 15 |
Selling of price 150 sh | ||
No contract 40,000 kg 60,000kg |
Units 000
20 30 40 20 30 40 20 30 40 |
Sh."000" 20 × 20 - (380 + 120) = -100 20 × 30 - 500 = 100 20 × 40 - 500 = 300 25 × 20 - 500 = 0.0 25 × 30 - 500 = 250 25 × 40 - 500 = 500 30 × 20 - 500 - 20 × 15 = -200 30 × 30 - 500 = 400 30 × 40 - 500 = 700 |
Selling of price 240 sh | ||
No contract 40,000kg 60,000kg |
Units 000
18 16 20 24 18 16 20 24 18 16 20 24 |
Sh."000"
110 × 18 - 1,600 = 380 110 × 16 - 1,600 = 160 110 × 20 - 1,600 = 600 110 × 24 - 1,600 = 1,040 115 x 18 - 1,600 - 320 = 150 115 × 16 - 1,600 - 180 = 60 115 × 20 - 1,600 = 700 115 × 24 - 1,600 = 1,160 120 × 18 - 1,600 - 360 = 200 120 × 16 - 1,600 - 420 = -100 120 × 20 - 1,600 - 300 = 500 120 × 24 - 1,600-240 = 1,040 |
Payoff table at selling price Sh 150 | |||
Outcome
Option
|
20,000 | 30,000 | 40,000 |
No contract Contract 40,000 kg Contract 60,000kg Probability |
-100 0 -200 0.1 |
100 250 400 0.6 |
300 500 700 0.3 |
Payoff table at selling price Sh 240 | ||||
Outcome
Option
|
18,000 | 16,000 | 20,000 | 24,000 |
No contract Contract 40,000 kg Contract 60,000kg Probability |
380 150 200 0.1 |
160 60 -100 0.3 |
600 700 500 0.3 |
1040 1160 1040 0.3 |
QUESTION 3b
Strategy
|
Contract
(Kgs) |
EMV (E)
Sh 000 |
Worst Outcome
(L) Sh 000 |
L+3E
Sh 000 |
150
240 |
None 40,000 60,000 None 40,000 60,000 |
140 300 430 578 591 452 |
-100 0 -200 160 60 -100 |
320
900 1,090 1,894 1,833 1,256 |
QUESTION 4a
Centre
Western Eastern Central |
Operating Profit
396 441 703 |
Net Asset / Total Asset Liabilities 1,800 - 80 = 1,720 3,400 - 240 = 3,160 4,300 - 480 = 3,820 |
ROI
23% 13.9% 18.4% |
Centre Western Eastern Central |
Operating
Profit 396 441 703 |
Total
Assets 1,800 3,400 4,300 |
Return On Capital Employed (12% of Total Asset) 12% x 1,800 = 216 12% × 3,400 = 408 12% x 4,300 = 516 |
RI 180 33 187 |
Weights Equity = 9,000 / 10,800 Debt = 1,800 / 10,800 |
Proportion 0.83 0.17 |
Centre western Eastern Central |
NOPAT
Profit (1 - t) 396 × 70% = 277.2 441 x 70% = 308.7 703 × 70% = 492.1 |
Capital employed (Asset - liabilities) 1,720 3,160 3,820 |
Return on capital employed
(Capital WACC) 1,720 × 13.64% = 234.6 3,160 × 13.64% = 431.0 3,820 × 13.64% = 521.0 |
EVA
Sh 000 42.6 -122.3 -28.9 |
QUESTION 4b
Let Revenue be x Revenue Less: Variable cost ration= (567 ÷ 2,100) Less: Fixed cost Operating profit |
X (0.27x) (1,092) 0.73x - 1092 |
Let total cost be x | ||||
Variable cost Fixed cost Total cost |
567 1,092 1,659 |
QUESTION 4(c)
QUESTION 5a
Division y income statement | ||||
Units(X)
1,000 2,000 3,000 4,000 5,000 6,000 |
Revenue (X * Price)
120 × 1,000 = 120,000 110 × 2,000 = 220,000 100 × 3,000 = 300,000 90 × 4,000 = 360,000 80 × 5,000 = 400,000 67 × 6,000 = 402,000 |
Variable Cost
(X * 54)
54,000 108,000 162,000 216,000 270,000 324,000 |
Fixed Cost
75,000 75,000 75,000 75,000 75,000 75,000 |
Profit
-9,000 37,000 63,000 69,000 55,000 3,000 218,000 |
QUESTION 5b
Units
1,000 2,000 3,000 4,000 5,000 6,000 |
Revenue
120,000 220,000 300,000 360,000 400,000 402,000 |
Variable Cost
(15 + 9)x
24,000 48,000 72,000 96,000 120,000 144,000 |
Fixed Cost(50 + 75)
125,000 125,000 125,000 125,000 125,000 125,000 |
Profit
-29,000 47,000 103,000 139,000 155,000 133,000 548,000 |
QUESTION 5(c)
Sales External Internal sales Less: Inter group sales Variable cost Fixed cost Profit |
Division x
75,000 (75,000) (50,000) (50,000) |
Division y 400,000 (75,000) (45,000) (75,000) 205,000 |
Sang Itd 400,000 (120,000) (125,000) 155,000 |
QUESTION 5(d)
➢ | Advanced Public finance-September-2015-Pilot-Paper |
➢ | Advanced Public finance-November-2015-Past-Paper |
➢ | Advanced Public finance-May-2016-Past-paper |
➢ | Advanced Public finance-November-2016-Past-Paper |
➢ | Advanced Public finance-November-2017-Past-paper |
➢ | Advanced Public finance-May-2017-Past-paper |
➢ | Advanced Public finance-November-2018-Past-paper |
➢ | Advanced Public finance-May-2018-Past-paper |
➢ | Advanced Public finance-May-2019-Past-paper |
➢ | Advanced Public finance-November-2019-Past-paper |
➢ | Advanced Public finance-November-2020-Past-paper |
➢ | Advanced Public finance-December-2021-Past-paper |
➢ | Advanced Public finance-April-2021-Past-paper |
➢ | Advanced Public finance-August-2021-Past-paper |
➦ | Advanced Financial Management-September-2015-Pilot-Paper |
➦ | Advanced Financial Management-November-2015-Past-Paper |
➦ | Advanced Financial Management-May-2016-Past-paper |
➦ | Advanced Financial Management-November-2016-Past-Paper |
➦ | Advanced Financial Management-November-2017-Past-paper |
➦ | Advanced Financial Management-May-2017-Past-paper |
➦ | Advanced Financial Management-November-2018-Past-paper |
➦ | Advanced Financial Management-May-2018-Past-paper |
➦ | Advanced Financial Management-May-2019-Past-paper |
➦ | Advanced Financial Management-November-2019-Past-paper |
➦ | Advanced Financial Management-November-2020-Past-paper |
➦ | Advanced Financial Management-December-2021-Past-paper |
➦ | Advanced Financial Management-April-2021-Past-paper |
➦ | Advanced Financial Management-August-2021-Past-paper |
➢ | Auditing & assurance-September-2015-Pilot-Paper |
➢ | Advanced Auditing & Assurance-November-2015-Past-Paper |
➢ | Advanced Auditing & Assurance-May-2016-Past-paper |
➢ | Auditing & assurance-November-2016-Past-Paper |
➢ | Advanced Auditing & Assurance-November-2017-Past-paper |
➢ | Advanced Auditing & Assurance-May-2017-Past-paper |
➢ | Advanced Auditing & Assurance-November-2018-Past-paper |
➢ | Advanced Auditing & Assurance-May-2018-Past-paper |
➢ | Advanced Auditing & Assurance-May-2019-Past-paper |
➢ | Advanced Auditing & Assurance-November-2019-Past-paper |
➢ | Advanced Auditing & Assurance-November-2020-Past-paper |
➢ | Advanced Auditing & Assurance-December-2021-Past-paper |
➢ | Advanced Auditing & Assurance-May-2021-Past-paper |
➢ | Advanced Auditing & Assurance-September-2021-Past-paper |
➢ | Advanced Auditing & Assurance-April-2022-Past-paper |
➢ | Advanced Auditing & Assurance-August-2022-Past-paper |
➢ | Advanced Auditing & Assurance-December-2022-Past-paper |
➢ | Advanced Auditing & Assurance-April-2023-Past-paper |
➦ | Advanced Financial reporting & analysis-September-2015-Pilot-Paper |
➦ | Advanced Financial reporting & analysis-November-2015-Past-Paper |
➦ | Advanced Financial reporting & analysis-May-2016-Past-paper |
➦ | Advanced Financial reporting & analysis-November-2016-Past-Paper |
➦ | Advanced Financial reporting & analysis-December-2017-Past-paper |
➦ | Advanced Financial reporting & analysis-May-2017-Past-paper |
➦ | Advanced Financial reporting & analysis-November-2018-Past-paper |
➦ | Advanced Financial reporting & analysis-May-2018-Past-paper |
➦ | Advanced Financial reporting & analysis-May-2019-Past-paper |
➦ | Advanced Financial reporting & analysis-November-2019-Past-paper |
➦ | Advanced Financial reporting & analysis-November-2020-Past-paper |
➦ | Advanced Financial reporting & analysis-December-2021-Past-paper |
➦ | Advanced Financial reporting & analysis-April-2021-Past-paper |
➦ | Advanced Financial reporting & analysis-August-2021-Past-paper |
➢ | Advanced Taxation-September-2015-Pilot-Paper |
➢ | Advanced Taxation-November-2015-Past-Paper |
➢ | Advanced Taxation-May-2016-Past-paper |
➢ | Advanced Taxation-November-2016-Past-Paper |
➢ | Advanced Taxation-November-2017-Past-paper |
➢ | Advanced Taxation-May-2017-Past-paper |
➢ | Advanced Taxation-November-2018-Past-paper |
➢ | Advanced Taxation-May-2018-Past-paper |
➢ | Advanced Taxation-May-2019-Past-paper |
➢ | Advanced Taxation-November-2019-Past-paper |
➢ | Advanced Taxation-November-2020-Past-paper |
➢ | Advanced Taxation-December-2021-Past-paper |
➢ | Advanced Taxation-April-2021-Past-paper |
➢ | Advanced Taxation-August-2021-Past-paper |
CPA past papers with answers