MBA4807

ACCOUNTING FOR MANAGERS

Duration: 3 Hours October/November 2023

First Examiner: Ms L Terre Blanche 100 Marks

Second Examiner: Ms MF Mamaregane
External Examiner: Dr F Munzhelele

THIS IS A NON-VENUE BASED INDIVIDUAL EXAMINATION

THIS EXAMINATION PAPER CONSISTS OF 7 PAGES

This examination question paper consists of three (3) pages.

INSTRUCTIONS TO CANDIDATE

• This examination will take place on 20 October 2023 from 10:00 to 13:00.
• Please note that the onus rests on you to ensure that your answer script uploaded onto Moodle
is the final and correct version. No amendments to submissions will be accepted after the
closing time.
• No late submissions will be accepted, and late submissions will be awarded a zero mark.
• Please number your answers correctly.
• The uploaded answer script must have a cover page (provided). Please ensure that the
module code, your registered name, identity number and student number appear on the cover
page.
• The answer script must have the signed honesty declaration form (provided). Please ensure
that you read, understand and sign the form.
• Answer each section/question of the examination on a new page (indicating the
section/question and the module code on the page).
• The answer script must be in PDF format only and the following naming convention of the final
file must be used when submitting the document on Moodle: STUDENT NUMBER_MBA4807
• It is your responsibility to ensure that the submitted document is not password protected and
the file submitted is not corrupted. If the marker is unable to access or open the submission
document, you will be awarded a zero mark for the examination.

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OCT/NOV 2023 SUPPLEMENTARY EXAMINATION

Graduate School of Business Leadership

Examination Declaration of Honesty Form
▪ This declaration form must be personally completed by the candidate only.
▪ This form declares that the candidate commits to the University’s assessment policies and procedures applicable to this exami nation.
▪ Any candidate who fails to submit the declaration form will be deemed to not agree with the University’s assessment polici es and as
such will not participate in the assessment.
▪ The completed form must be uploaded on the Moodle platform along with your examination.

CANDIDATE SURNAME

CANDIDATE FULL NAMES

ID/PASSPORT NUMBER

STUDENT NUMBER

MODULE CODE

MODULE NAME

CONTACT DETAILS

DECLARATION
• I declare that all the details provided by me on this form are true and correct.
• I am aware that the assessment date and time for MBA4807 is the 20th of October 2023 from 10:00 to 13:00.
• I undertake to comply with all the rules, regulations and policies of the University pertaining to this assessment.
• I agree that it is my responsibility to ensure that I have internet access to enable me to access Moodle during the
assessment period (Oct/Nov 2023).
• I agree that it is my responsibility to personally download and/or print and/or access the question paper provided
to me via the Moodle and to upload my answer sheets to the Moodle and that any late submission will not be
marked and will be graded at 0%.
• I am aware that my completed assessment must only be submitted via the Moodle platform.
• I am aware that the assessment will be conducted in the medium of English only.
• By submitting the MBA4807 assessment on the 20th of October 2023, I declare that:
• I have read the Unisa’s Students’ Disciplinary Code, available at
https://www.unisa.ac.za/static/corporate_web/Content/Apply%20for%20admission/Documents/Unisa-Students-
Disciplinary-Code-25-April-2014.pdf
• I have read the Policy for Copyright Infringement and Plagiarism, available at
https://www.unisa.ac.za/static/corporate_web/Content/Colleges/CGS/documents/copyrightinfringement_and_pla
giarism_policy_16nov05.pdf
• I know what plagiarism is, that plagiarism is wrong and that disciplinary steps can be taken against me if I am found
guilty of plagiarism.
• The MBA4807 Exam that I submitted is my own work and I have not received assistance and/or given
assistance from/to any person in completing this assessment.
• I have independently and individually completed the assessment without copying work from any other person/s
• I have not allowed any other student to copy my work.
• I know that if I am found to be in violation of this declaration I will receive 0% for this assessment and that Unisa
may investigate further and institute disciplinary action against me.

CANDIDATE
SIGNATURE

DATE

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OCT/NOV 2023 SUPPLEMENTARY EXAMINATION

EXAMINATION COVER PAGE

MBA4807
OCT/NOV 2023
ACCOUNTING FOR MANAGERS
STUDENT NUMBER

FULL NAME

IDENTITY NUMBER

Question Marks
No
Examiners Moderator
1 2 3

Total

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OCT/NOV 2023 SUPPLEMENTARY EXAMINATION

SECTION A – FINANCIAL ACCOUNTING [50 MARKS]

QUESTION 1 (12 Marks)

Complete the following table.

Basis of comparison Financial Accounting Management Accounting
1. Who is the information prepared
for?

2. Is the information past or future

orientated?

3. How often must reports be

prepared?

4. Are there specific formats that

must be complied with?

5. How much detail must be provided

in the reports?

6. What types of reports are

prepared?

QUESTION 2 (19 Marks)

(Classify each of the following items of Zama-Zama Ltd, that operates within the
advertising industry, as noncurrent assets (NCA); current assets (CA); noncurrent
liability (NCL); current liability (CL); owners’ equity (OE); income (I) or expenses (E).

NCA CA NCL CL OE I E
a) Equipment
b) Stationery used
c) Creditors control
d) Varnishes used
e) Advertising fee
received
f) Motor vehicle
g) Loan
h) Water & electricity
i) Computer purchased
j) Bank fees
k) Interest on loan
l) Interest on fixed deposit
m) Capital invested
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OCT/NOV 2023 SUPPLEMENTARY EXAMINATION

n) Salaries
o) Owner’s withdrawals
for personal use
p) Net profit
q) Debtors control
r) Long-term loan
s) Short-term loan

QUESTION 3 (19 Marks)

Gogo Ltd and Bobo Ltd are both wholesale companies working in the same business segment.
Given the information embedded in a number of ratios that we collected (see table below), they
seem however, to take a different customer approach to their business.

Ratio Gogo Ltd Bobo Ltd

Return on capital 14% 15%
employed
Credit given 59 days 19 days
Credit obtained 50 days 47 days
Gross operating margin 42% 17%
Current ratio 2.4 1.3
Net operating margin 11% 11%
Days inventory 50 days 21 days
outstanding

Required:
Explain what the ratios reveal with regard to the operating approach of Gogo Ltd and
Bobo Ltd. Take into account price competitiveness and customer service level.

SECTION B – MANAGEMENT ACCOUNTING [50 MARKS]

QUESTION 1 (25 Marks)

Jurupa Ltd, a construction company based in Kondinin, Madron has been awarded a contract
by the Cricket World Cup Federation Committee to build the concrete stadium seats for the new
stadium located in Fred Point, Durban. The company director, Bruce Gianni, has appointed
Sujik Bratiko as the production manager with a salary of R100 000 per month.

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OCT/NOV 2023 SUPPLEMENTARY EXAMINATION

The concrete to manufacture each seat cost R55.00 per seat. Sujik has estimated that it would
take 12 hours to make one seat in the production process at a wage rate of R296.00 per hour
worked with a workforce of one hundred workers in the process. With all the labour hours being
worked, the concrete mixers are estimated to lose R63 525 in value every year.

The company had to spend an additional R362 565 for costs incurred to put sign boards at the
different corners of the stadium informing the public that the company is manufacturing the
seats for the new stadium, this is an excellent marketing tool for the company. The construction
site requires a site office to be set up. ManStrong Container Rentals agreed to set up a container
for the company in order to operate the office at a rate of R36 000 per month. The site will also
employ, Thanda McNeil to do the administration work for the site office at a salary of R29 500
per month.

As a result of expensive materials and equipment being kept at the site, the managers agreed
that a security company must be contracted to guard all materials and equipment used in
production. After a tender process, Shape Security had been awarded the contract which stated
they would provide 2 × 24-hour armed guards per shift for a rate of R65 963 per month.

Required:

Identify all the costs involved from the information provided above, then classify the cost
you have selected in terms of Cost Behaviour (Variable, Fixed or Mixed Cost) and then
further classify the cost as either Product Cost (Manufacturing Cost) or Period Cost
(Non-Manufacturing Cost).

QUESTION 2 (25 Marks)

The following actual and budgeted figures are available for Mahala Price Wholesalers:

Actual Budgeted

March April May June July

Units sold 60 000 57 000 63 000 ? ?
Selling price per unit R6 R6.30 R6.30 R5.70 ?
Purchases R108 000 R132 000 R204 000 ?
Overheads R30 000 R96 000 R48 000 R99 000 R45 000
Cash on hand– 31 May R12 000

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OCT/NOV 2023 SUPPLEMENTARY EXAMINATION

ADDITIONAL INFORMATION
1. For the month of June, all units will be sold for cash only on a Winter Wonderland Sale
at R5.70 each. They expect that this will result in the number of units sold being double
the April units sold.
For July, units sold are expected to be the average for the months of March, April and
May at a selling price of cost plus 40%.
2. 60% of total sales are usually for cash and 40% on credit.
Debtors pay as follows:
50% after 30 days.
30% after 60 days.
15% after 90 days.
5% never (to be written off).
3. The sole supplier of goods has kept purchase prices constant at R4.80 per unit for the
past three months and is expected to do so in the future.
4. At the end of May, 105 000 units were in store, but no stock is to be kept on hand in
future. Stock on hand will be sold; after which goods will be purchased when customers
place an order.
5. Purchases are paid after 30 days.
6. Overheads are paid in cash and include depreciation of R10 740 per month.
The company has budgeted to purchase a new computer on 30 June for R21 000 cash.
Depreciation is to be written off at 20% per annum on cost.

Required:

1. Calculate the missing figures (?) on the table above. (4)

2. Calculate total sales for each month. (6)

3. Prepare a cash budget for June and July. (15)

[Total: 100 Marks]

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UNISA 2023