REPUBIQUE DU CAMEROUN REPUBLIC OF CAMEROON

Paix – Travail – Patrie Peace – Work – Fatherland

MINISTERE DES ENSEIGNEMENTS SECONDAIRES MINISTRY OF SECONDARY EDUCATION
LES INSPECTIONS DES PEDAGOGIES INSPECTORATES OF PEDAGOGY REGION DU SUD-OUEST SOUTH
WEST REGION
P.M.B. 10015, BUEA P.M.B. 10015, BUEA

THE TEACHERS’ RESOURCE UNIT (TRU)

Cellule d’appui à l’action Pédagogique

IN COLLABORATION WITH
En collaboration avec

SUBJECT TEACHERS’ ASSOCIATIONS (STA)

SOUTH WEST REGIONAL MOCK EXAMINATION

Technical and Vocational Education Examination (TVEE)

MARCH 2021 ADVANCED LEVEL

Specialty Accounting (AM)

Subject Title Cost and Management Accounting
Paper Number / Title Paper 3 – Management Accounting
Subject Code Number 7010

Three hours
INSTRUCTIONS TO CANDIDATES:

This paper carries SIX questions.

Answer any FIVE questions.

All questions carry 20 marks each. For your guidance, the approximate mark for each part of a question is
indicated in brackets.

You are reminded of the necessity for good English and orderly presentation in your answers.

If you answer MORE THAN five (5) questions, ONLY the first five (5) answers presented will be marked. Mean
while,, the other answer will be cancelled.

You are allowed to use GRAPH PAPERS and CALCULATORS.

You must use ONLY Blue or Black ink. No answer in Pencil will be marked.

All Appendices filled or completed should be handed in with your answer booklet and must be put in the appropriate
answered number.

Inspectorate of
Pedagogy and should not be reproduced without the permission of the authors
All necessary calculations must be shown.

You are advised to read carefully through the question paper, before you begin your answers.

©TRU/RPI/SWATA/CMA/7010/P3/MOCK 2021. This document is the property of the TRU and the
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1. The following table shows schedules of prospective operating cash inflows, each of which requires the
same investment.
Year 0 1 2 3 4 5
Plan A (000CFAF) 1,500,000 100,000 200,000 300,000 400,000 500,000
Plan B (000CFAF) 1,500,000 500,000 400,000 300,000 200,000 100,000
The minimum desired rate of return is 10% compounded annually.
Required:
a) Calculation the following for each plan:
(i) Net Present Value (NPV)
(12 marks)
(ii) Payback Period (PP) (6 marks) b) Which plan is more desirable?
Justify. (2 marks)
(Total 20 marks)
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2. The following data was provided by DESCO ltd as at 31st December 2019:
- opening cash balance (JULY 2019): 1,200,000 CFAF - production in units
Years F 201 2020
9
Months A M J J A S O N D J F
UNITS 240 270 300 320 350 370 380 340 310 260 250
Raw materials used in production are valued at 5,000 CFAF per unit and they are paid 80% in the month
of the production and 20% in the following month.
- Direct labour cost of 8,000 CFAF per unit are payable in the month of production.
- Variable expenses of 2,000 CFAF per unit are payable half in the month of production and the
rest in the month that follows the month of production. - Sales at 20,000 CFAF per unit are as
follows:
Years 2019
Months M A M J J A S O N D
UNITS 260 200 320 290 400 300 350 400 390 400
Debtors are to settle their account three months after the sales have been made.
- Fixed expenses of 400,000 CFAF per month are paid each month.
- Machinery costing 2,000,000 CFAF are payable in the month of October 2019.
- Legacy of 2,500,000 CFAF will be received in the month of December 2019. - Drawings
of 300,000 CFAF per month have to be carried out.
Required:
Draw up a cash budget for DESCO ltd from August 2019 to December 2019 (the last five months of the
year 2019).
(Total 20 marks)
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Pedagogy and should not be reproduced without the permission of the authors Page 2 of 4
3. CHICCO Company ltd manufacturing a single product and has recently introduced a system of
budgeting and variance analysis. The following information is available for the month of December
2019.
i.
Budget (CFAF) Actual (CFAF)
Direct materials 200,000 201,285
Direct labour 313,625 337,500
Variable manufacturing overhead 141,400 143,000
Variable sales overhead 75,000 71,000
Administration costs 150,000 148,650
ii. The standard costs were:
Direct labour 48,250 hours at 6.50 CFAF per hour.
Direct materials 20,000 kg at 10 CFAF a kg.
iii. Actual manufacturing costs were:
Direct labour 50,000 hours at 6.75 CFAF per hour.
Direct materials 18,900 kg at 10.65 CFAF per kg. iv.
Budgeted sales were 20,000 units at 50 CFAF a unit.
Actual sales were: 15,000 Units at 52 CFAF a unit.
5,200 units at 56 CFAF a unit.
v. There was no work in progress or stock of finished goods.
vi. Overheads are absorbed using quantity of direct materials.
Required:
a) Prepare the statement of income showing the budgeted and actual gross and net profit or loss for
December 2019 of CHICCO Company limited. (10 marks)
b) Establish a comparison table for actual and standard cost of materials, labour and manufacturing
overheads. (10 marks)
(Total 20 marks)
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4. The industrial company of FATRIC Kumba is located in KANG-BAROMBI Meme Division of the
South West Region of Cameroon. It is specialised in the production of Ice Cream from raw material M. the
forecasted consumption of this raw material for the coming year are given as follows:
Month Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Quantity 14,000 13,00 16,000 11,00 14,000 15,000 10,500 16,000 16,000 15,600 17,00 13,900
0 0 0
- The cost of placing an order is 64,500 CFAF
- The holding cost is 1 CFAF per article and per month
Required:
a) Determine the economic order quantity (EOQ). (5 marks)
b) Determine the optimal number of orders to be made each year (N). (3 marks)
c) Copy and complete the following table. (7 marks)

Table of Total Ordering Cost, Total Holding Cost and Total Cost
Number of Orders Total Ordering Cost Total Holding Cost Total cost
1
2
4
5
6

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Pedagogy and should not be reproduced without the permission of the authors Page 3 of 4
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8
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d) Use the table to make a graphical representation of the optimal number of orders. (5 marks)
(Total 20 marks)
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5. CAMYDA Ltd is a manufacturing enterprise. Its estimated turnover for 2020 is 20,000,000 CFAF. The
forecasted break-even point should be realised on 31st March 2020. The selling price is 5,000 CFAF per
unit and the forecasted result is 20% of the turnover. Consider that a year has 360 days.
Required:
a) Determine the forecasted fixed cost and the variable cost. (7 marks)
th
b) If the BEP was to be attained on 15 February 2020, what should have been the unit selling price?
(3 marks)
c) If the fixed cost is increased by 25% and variable cost decreased by 10%, determine the new
breakeven point in value and in quantity. (4 marks) d) Present an
operating statement to show the contribution and result. (6 marks)
(Total 20 marks)
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6. MAMAMIKE Company produces and sells two products M1 and M2. These products yield a
contribution of 600 CFAF and 450 CFAF respectively. The production takes places in three factories
successively and the monthly capacities of the factories are in expressed machine hours. Below is a
table that summaries the production of a unit of M1 and M2
M1 M2 Monthly capacity
Factory 1 (NI) 3 hours 4 hours30 minutes 18,000
Factory 2 (MI) 3 hours 3 hours 14,400
Factory 3 (SI) 1 hour 1hour 30 minutes 6,000
The company’s management wishes to know the program which maximises the profit.
Required
a) Write down the objective function and the constraints in the form of inequalities. (6 marks)
b) Establish a graph and determine the production program. (12 marks)
c) Calculate the contribution for the production program. (2 marks)
(Total 20 marks)

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