COMPULSORY QUESTION Question 1 Explain briefly the following with simple examples; Tangible costs and Intangible costs i. ii. iii. iv. Fixed costs, direct costs and indirect costs Sunk costs and prospective costs Running costs Cost baseline Cost variances V. vi. vii. Management reserve and contingency reserve

Required a. Determine the unit cost for each job using a traditional plantwide overhead rate based on machine hours. b. Determine the unit cost for each job using ABC. (Round answers to two decimal places.) c. As the manager of Ridgeland, is there additional information that you would want to help you evalu- ate the pricing and profitability of Jobs 201 and 202? d. Assuming the company has been using the method required in part a, how should management react to the findings in part b?

The Bedford Company produces Component A-4 that is used by the company in its production of Product ST. The costs of producing Component A-4 consist of $16 for materials, $14 for labor, $6 of variable overhead, and $8 of fixed overhead. The company is considering buying the component for $40 per unit and using the facilities to produce an equal number of units of Product R that the company estimates will bring in a contribution margin of $6 per unit produced. REQUIRED: Determine whether Component A-4 should be made or bought. Show your computations.

a. On 4 January 2020 Thabo deposited P7 800 into savings account. The simple interest rate agreed upon was 6.2% per annum. What will be accumulated amount in the savings account on 21 November 2020? (Assume a year has 365 days). b. Joanna has taken an endowment policy that matures in 30 years. The expected interest rate per year is 11.15%. Her annual payment (at the end of each year) isP8000. Calculate: i.The present value of the policy(4 ii.The future value of the policy c. Find the value of $10,000 in 10 years. The investment earns 8% for four years and then earns 4% for the remaining six years.(4 marks) d. P1 400 was left in an investment account for 20 years and it earned 12.5% per-year compounded half-yearly. Calculate the value of the investment after 20 years.

Question 6) Compare Islamic financing and conventional financing methods. What are the key differences?

a. You are the management accountant of Expand, a company incorporated in SouthAfrica. You have been asked to analyse the financial statements of Hone and Vanefor the year ending 2019 and 2020. a. Calculate three profitability ratios for the both companies for both years. b. Based on the calculated ratios above comment on the profitability of the two companies.(8 marks)

5- (15 pts.) XPRO Manufacturing is considering the introduction of a family of new products. John Avalon, the VP of Operations considering three different production processes (batch manufacturing, custom manufacturing, and group technology. The demand and profit depends on the state of economy as provided in table below.

P17-31. Special Order Razor USA produces a variety of electric scooters. Assume that Razor has just received an order from a customer (Pulse Cycles) for 500 Power Core scooters. The following price, based on cost plus a 60% markup, has been developed for the order:

Required a. Develop a monthly plan that indicates the number of customers Maria should call on in each clas- sification to maximize her monthly sales commissions. b. Determine the monthly commissions Maria will earn if she implements this plan. c. Give one or two reasons why Maria might decide not to follow the conclusions of the above analysis entirely