CAPE Accounting Unit 2 · 2012 · Paper 2

29 questions and parts from this paper. Open one to see it in full, then practise it on Quelpr and get it marked against the mark scheme.

1. 1(a)6 marksCopy and complete the table to show the differences between Cost and Management Accounting and Financial Accounting using the six headings provided: Users of information, Use of information, Format of presentation of…
2. 1(b)(i)1 markClassify sales commissions as EITHER fixed OR variable in relation to the number of units produced and sold.
3. 1(b)(ii)1 markClassify advertising as EITHER fixed OR variable in relation to the number of units produced and sold.
4. 1(b)(iii)1 markClassify packaging costs as EITHER fixed OR variable in relation to the number of units produced and sold.
5. 1(b)(iv)1 markClassify CDs as EITHER fixed OR variable in relation to the number of units produced and sold.
6. 1(b)(v)1 markClassify salaries of customer support personnel as EITHER fixed OR variable in relation to the number of units produced and sold.
7. 1(b)(vi)1 markClassify property taxes on the general offices as EITHER fixed OR variable in relation to the number of units produced and sold.
8. 1(c)(i)2 marksCalculate the cost of finished goods manufactured.
9. 1(c)(ii)2 marksCalculate the cost of goods sold.
10. 1(d)(i)5 marksCalculate the cost of producing 300 000 units of luxury sandwiches and 450 000 units of standard sandwiches under the piece rate system.
11. 1(d)(ii)5 marksCalculate the total number of hours worked during summer.
12. 1(d)(iii)3 marksCalculate the overtime hours worked per week during the summer.
13. 1(d)(iv)3 marksCalculate the additional pay for labour over the 8 weeks of the summer.
14. 1(d)(v)3 marksCalculate the annual wages payable under the proposed system.
15. 2(a)(i)7 marksPrepare a marginal costing income statement for the company.
16. 2(a)(ii)7 marksPrepare an absorption costing income statement for the company.
17. 2(a)(iii)2 marksReconcile the difference between the net operating income computed under marginal costing and that computed under absorption costing.
18. 2(b)(i)12 marksPrepare the job cost sheet for Akupa Engineering Ltd.
19. 2(b)(ii)3 marksCalculate the quotation price for the job.
20. 2(c)4 marksList FOUR benefits that Akupa Engineering Ltd. could gain from using the Activity-Based Costing approach instead of the Traditional Approach to costing.
21. 3(a)4 marksCalculate the payback period for this investment.
22. 3(b)4 marksCalculate the accounting rate of return.
23. 3(c)4 marksCalculate the net present value of this investment if Mr Lee requires a minimum return of 20%, completing the given table.
24. 3(d)5 marksWhat observations can you make about your findings in the answers (a), (b) and (c)?
25. 3(e)(i)5 marksExplain the term 'variance' as used in standard costing.
26. 3(e)(ii)4 marksList FOUR limitations of variance analysis.
27. 3(f)5 marksExplain the term 'Internal Rate of Return (IRR)'.
28. 3(g)(i)2 marksOther than non-financial considerations, what decision should a company take about a proposed project if the calculated Internal Rate of Return is higher than the company's cost of capital?
29. 3(g)(ii)2 marksOther than non-financial considerations, what decision should a company take about a proposed project if the calculated Internal Rate of Return is lower than the company's cost of capital?