Management Accounting

Topic and Attempt Wise Analysis of Past Papers

Summer 2009 to Summer 2015

Analysis by: Numair Mushtaq CA Pakistan Module F numairmushtaq@gmail.com

 Topic wise Analysis of Management Accounting (ICAP)-Summer 2009 to Summer 2015

Topic with
Q No. Attempt Description of the Question Marks
weightage

5 Summer-09 Computation of Savings expected via revised plan 15

4 Winter-09 Supplier selection and whether inspection to carry out 18
5 Winter-09 Determination of best option available (CNG Kits) 13
Decision Making (18%)

4 Summer-10 Computation of Sales volume where Company will be inclined to establish sales Department 13
5 Winter-10 Product mix for maximum profit of the Company (Chemicals) 25
3 Summer-11 Evaluate the 2 options and give recommendation (Burger Fries). 20
5 Summer-11 Priority in which Material to be purchased (Local& Imported) 17
4 Winter-11 Evaluate Consultant's suggestions and give your recommendation 23
1 Summer-12 Determining best of the 2 available options 16
3 Winter-13 Analyze the Disposal Decision of the tea Segment 23
5 Winter-13 Analyze whether Raw Material to be Imported or buy locally 21
6 Summer-14 Identifying which machine is most beneficial to dispose off 15
6 Winter-14 Evaluating Discount Schemes Feasibility 20

6 Summer-09 Advise on Cheapest option (Factoring, Loan, Supplier Discount) 12

1 Winter-09 Determining W.C requirement for the year 18
Working Capital, Inventory and

3 Summer-10 Cash Requirements for the 1st two Quarters 17

Budgeted Cash flow (17%)

3 Winter-10 Ideal Re order level and Whether to Bulk buy for discount offered by supplier 16
2 Summer-11 Working Capital Requirements for the 1st two Years 15
3 Winter-11 Month Wise Cash Flow of the Project 14
6 Summer-12 Evaluating a Factoring Proposal 15
1 Winter-12 Projected Cash flow for the upcoming Year 17
1 Summer-13 Evaluating Changes Suggested in the WC policy and give recommendations 18
1 Winter-13 Calculation of EOQ and optimal Safety Stock when new order is to be Placed 14
1 Summer-14 Month Wise Cash Flow of the Project for 1st 8 months 18
2 Summer-14 Evaluate and Discuss Revision of the WC policies by Management 15
1 Winter-14 Computation of EOQ, Total Ordering & Carrying costs and Optimal Safety Stock level 16
4 Summer-15 Minimum required Increase in Running finance facility 13

6 Winter-09 Sale Price Calculation to earn 25 % Profit on relevant cost 17

1 Summer-10 Budgeted P&L for the upcoming Year 16
Relevant Cost & Pricing and

5 Summer-10 Manufacturing Cost of Product under relevant Cost approach 18

Budgeted P&L (15%)

1 Winter-10 Budgeted Profit under present and after Consultants suggestions implementation (TV kits) 20
4 Summer-11 Price Per Unit of Electricity calculation to achieve desired profit 12
1 Winter-11 Bid Price Determination to earn 20% on Relevant Cost 20
4 Winter-12 Sale Price Determination to earn 30% on Relevant Cost 13
2 Summer-13 Sale Price Determination to earn 20% margin on SP 17
6 Winter-13 Budgeted P&L for the upcoming Year 20
4 Summer-14 Price Per Unit to accept to earn 20% on total costs (Over Project life) 15
4 Winter-14 Budgeted P&L for the 1st Year 16
2 Summer-15 Optimal Sales Price and optimal profit calculation 12
Transfer Pricing &

Performance (9%)

6 Summer-10 Maximizing Company’s profit and minimum transfer price acceptable to selling factory 22
4 Winter-10 Evaluate two departments' performance and discuss investment opportunities from DMs and CEO viewpoint 23
Divisional

4 Summer-12 Product mix to maximize profit and Minimum transfer price determination 20
5 Winter-12 Strategy to Maximize Company's Profit and effect on the bonus of revising the policy 20
6 Summer-13 Calculate ROI,RI and Analyze Investment opportunity keeping in view ROI,RI 18
3 Summer-14 Maximizing Company’s profit and minimum transfer price for selling Division and viewpoint of buying Division 16
Variance Analysis (9%)

2 Summer-09 Reconciliation of Budgets contribution to actual via 8 relevant Variances 18

3 Winter-09 Material Price, usage, mix and yield variances calculation. 18
1 Summer-11 Calculation of Sales, Material and labor Variances for the Quarter 20
2 Winter-11 Sales and Labor Variances (Planning and operational) 16
6 Winter-12 Preparation of Profit statement via standard Costing (All variances) 23
7 Summer-13 Material Price, Usage, Mix and Yield Variances 7
1.a Summer-14 Criticisms on Standard Costing 4
2 Winter-14 Material Price, Usage, Mix and Yield Variances 12
 Learning Curve 2 Winter-09 Minimum Price to be charged to earn 20% GP on SP 16
(7%) 3 Winter-10 Which of the 2 prices to be charged in next year 16
6 Winter-11 Determine size of the 2nd order to earn 20% GP on both orders 14
2 Winter-12 Calculation of the price to be quoted to earn 25% margin on SP 15
4 Winter-13 Determine feasibility of the new product 15
5 Winter-14 TQM and Minimum Quantity that will allow 20% Contribution on Sales 20

1 Summer-09 Sales Amount & Quantity for remaining Period to Achieve B.E 18
Analysis (7%)
Break even

3 Summer-12 Number of Jumbo Packs Calculation to earn Profit of 5 Mn 14

4 Summer-13 Number of Units of B to be sold to justify continuation, Unit price of A to Earn 20% increased profit 18
2 Winter-13 Percentage increase in Sales Volume to Maintain Margin of Safety 7
3 Winter-14 Determining B.E revenue, number of Chairs & Tables to earn target profit 16
1 Summer-15 B.E Sales Rs while ratio of Local Sales of 2 products remain as per budget 21
Programming

2 Summer-10 Calculate Shadow price if 200 hours are added to one department 14
6 Summer-11 Optimal production plan of Chairs and Table for the Month 16
Linear

(6%)

2 Summer-12 Optimal production plan for the Month 15

5 Summer-14 Optimal production plan for the year and Shadow price of scarce recourses assuming constant demand 17
5 Summer-15 Whether to accept production expansion proposal 15

7 Summer-09 Per Unit OH cost for 3 products under ABC and single OH rate methods 18
Costing
(5%)
ABC

5 Summer-12 Per Unit Cost for 2 products under ABC and single OH rate methods 20
3 Winter-12 Per Unit Cost for 3 products under ABC method 12
3 Summer-15 Product wise P&L using ABC Method 19

Process
5 Winter-11 Process Account for Department 2 for the month 13
Costing
(3% ) 6 Summer-15 Entries for 1. Material 2. Labor 3. OHs 4. Abnormal Loss 5. Transfer to next process 6. Closure of variance 20

Network
4 Summer-09 Contract Network Diagram and Computation of Float and Critical Path 11
Diagram
(2% ) 5 Summer-13 Drawing Network Diagram, Calculation of Float & Critical Path 10

Regression
3 Summer-09 Variable cost Computation using Least Square 8
& Expected
values (2% ) 3 Summer-13 Computation of Probability and Expected Rate of return on Equity 12
 Attempt wise Analysis of Management Accounting (ICAP)-Summer 2009 to Summer 2015

Attempt Topic Q No. Description of the Question Marks

Break even Analysis 1 Sales Amount & Quantity for remaining Period to Achieve B.E 18
Variance Analysis 2 Reconciliation of Budgets contribution to actual via 8 relevant Variances 18
Summer-2009

Regression 3 Variable cost Computation using Least Square 8

Network Diagram 4 Contract Network Diagram and Computation of Float and Critical Path 11
Decision Making 5 Computation of Savings expected via revised plan 15
Working Capital, Inventory and Budgeted Cash flow 6 Advise on Cheapest option (Factoring, Loan, Supplier Discount) 12
ABC Costing 7 Per Unit OH cost for 3 products under ABC and single OH rate methods 18

Working Capital, Inventory and Budgeted Cash flow 1 Determining W.C requirement for the year 18
Winter-2009

Learning Curve 2 Minimum Price to be charged to earn 20% GP on SP 16

Variance Analysis 3 Material Price, usage, mix and yield variances calculation. 18
Decision Making 4 Supplier selection and whether inspection to carry out 18
Decision Making 5 Determination of best option available (CNG Kits) 13
Relevant Cost & Pricing and Budgeted P&L 6 Sale Price Calculation to earn 25 % Profit on relevant cost 17

Relevant Cost & Pricing and Budgeted P&L 1 Budgeted P&L for the upcoming Year 16
Summer-2010

Linear Programming 2 Calculate Shadow price if 200 hours are added to one department 14
Working Capital, Inventory and Budgeted Cash flow 3 Cash Requirements for the 1st two Quarters 17
Decision Making 4 Computation of Sales volume where Company will be inclined to establish sales Department 13
Relevant Cost & Pricing and Budgeted P&L 5 Manufacturing Cost of Product under relevant Cost approach 18
Transfer Pricing and Divisional Performance 6 Maximizing Company’s profit and minimum transfer price acceptable to selling factory 22

Relevant Cost & Pricing and Budgeted P&L 1 Budgeted Profit under present and after Consultants suggestions implementation (TV kits) 20
Winter-2010

Working Capital, Inventory and Budgeted Cash flow 3 Ideal Re order level and Whether to Bulk buy for discount offered by supplier 16
Learning Curve 3 Which of the 2 prices to be charged in next year 16
Transfer Pricing and Divisional Performance 4 Evaluate two departments' performance and discuss investment opportunities from DMs and CEO viewpoint 23
Decision Making 5 Product mix for maximum profit of the Company (Chemicals) 25

Variance Analysis 1 Calculation of Sales, Material and labor Variances for the Quarter 20
Summer-2011

Working Capital, Inventory and Budgeted Cash flow 2 Working Capital Requirements for the 1st two Years 15
Decision Making 3 Evaluate the 2 options and give recommendation (Burger Fries). 20
Relevant Cost & Pricing and Budgeted P&L 4 Price Per Unit of Electricity calculation to achieve desired profit 12
Decision Making 5 Priority in which Material to be purchased (Local& Imported) 17
Linear Programming 6 Optimal production plan of Chairs and Table for the Month 16

Relevant Cost & Pricing and Budgeted P&L 1 Bid Price Determination to earn 20% on Relevant Cost 20
Winter-2011

Variance Analysis 2 Sales and Labor Variances (Planning and operational) 16

Working Capital, Inventory and Budgeted Cash flow 3 Month Wise Cash Flow of the Project 14
Decision Making 4 Evaluate Consultant's suggestions and give your recommendation 23
Process Costing 5 Process Account for Department 2 for the month 13
Learning Curve 6 Determine size of the 2nd order to earn 20% GP on both orders 14

Decision Making 1 Determining best of the 2 available options 16

Summer-2012

Linear Programming 2 Optimal production plan for the Month 15

Break even Analysis 3 Number of Jumbo Packs Calculation to earn Profit of 5 Mn 14
Transfer Pricing and Divisional Performance 4 Product mix to maximize profit and Minimum transfer price determination 20
ABC Costing 5 Per Unit Cost for 2 products under ABC and single OH rate methods 20
Working Capital, Inventory and Budgeted Cash flow 6 Evaluating a Factoring Proposal 15
 Working Capital, Inventory and Budgeted Cash flow 1 Projected Cash flow for the upcoming Year 17
Winter-2012

Learning Curve 2 Calculation of the price to be quoted to earn 25% margin on SP 15

ABC Costing 3 Per Unit Cost for 3 products under ABC method 12
Relevant Cost & Pricing and Budgeted P&L 4 Sale Price Determination to earn 30% on Relevant Cost 13
Transfer Pricing and Divisional Performance 5 Strategy to Maximize Company's Profit and effect on the bonus of revising the policy 20
Variance Analysis 6 Preparation of Profit statement via standard Costing (All variances) 23

Working Capital, Inventory and Budgeted Cash flow 1 Evaluating Changes Suggested in the WC policy and give recommendations 18
Relevant Cost & Pricing and Budgeted P&L 2 Sale Price Determination to earn 20% margin on SP 17
Summer-2013

EV 3 Computation of Probability and Expected Rate of return on Equity 12

Break even Analysis 4 Number of Units of B to be sold to justify continuation, Unit price of A to Earn 20% increased profit 18
Network Diagram 5 Drawing Network Diagram, Calculation of Float & Critical Path 10
Transfer Pricing and Divisional Performance 6 Calculate ROI,RI and Analyze Investment opportunity keeping in view ROI,RI 18
Variance Analysis 7 Material Price, Usage, Mix and Yield Variances 7

Working Capital, Inventory and Budgeted Cash flow 1 Calculation of EOQ and optimal Safety Stock when new order is to be Placed 14
Winter-2013

Break even Analysis 2 Percentage increase in Sales Volume to Maintain Margin of Safety 7
Decision Making 3 Analyze the Disposal Decision of the tea Segment 23
Learning Curve 4 Determine feasibility of the new product 15
Decision Making 5 Analyze whether Raw Material to be Imported or buy locally 21
Relevant Cost & Pricing and Budgeted P&L 6 Budgeted P&L for the upcoming Year 20

Working Capital, Inventory and Budgeted Cash flow 1 Month Wise Cash Flow of the Project for 1st 8 months 18
Variance Analysis 1.A Criticisms on Standard Costing 4
Summer-2014

Transfer Pricing and Divisional Performance
Relevant Cost & Pricing and Budgeted P&L
Linear Programming
Decision Making
Working Capital, Inventory and Budgeted Cash flow
3 Maximizing Company’s profit and minimum transfer price for selling Division and viewpoint of buying Division 16
4 Price Per Unit to accept to earn 20% on total costs (Over Project life) 15
5 Optimal production plan for the year and Shadow price of scarce recourses assuming constant demand 17
6 Identifying which machine is most beneficial to dispose off 15
2 Evaluate and Discuss Revision of the WC policies by Management 15

Decision Making 6 Evaluating Discount Schemes Feasibility 20

Winter-2014

Learning Curve 5 TQM and Minimum Quantity that will allow 20% Contribution on Sales 20
Relevant Cost & Pricing and Budgeted P&L 4 Budgeted P&L for the 1st Year 16
Break even Analysis 3 Determining B.E revenue, number of Chairs & Tables to earn target profit 16
Variance Analysis 2 Material Price, Usage, Mix and Yield Variances 12
Working Capital, Inventory and Budgeted Cash flow 1 Computation of EOQ, Total Ordering & Carrying costs and Optimal Safety Stock level 16

Break even Analysis 1 B.E Sales Rs while ratio of Local Sales of 2 products remain as per budget 21
Summer-2015

Relevant Cost & Pricing and Budgeted P&L 2 Optimal Sales Price and optimal profit calculation 12
ABC Costing 3 Product wise P&L using ABC Method 19
Working Capital, Inventory andBudgeted Cash flow 4 Minimum required Increase in Running finance facility 13
Linear Programming 5 Whether to accept production expansion proposal 15
Process Costing 6 Entries for 1. Material 2. Labor 3. OHs 4. Abnormal Loss 5. Transfer to next process 6. Closure of variance 20

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Numairmushtaq@gmail.com