CAPE Accounting Unit 2 · 2019 · Paper 2

23 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)4 marksState TWO differences between 'financial accounting' and 'management accounting'.
2. 1(b)6 marksExplain 'product cost' and 'period cost', giving ONE example of EACH.
3. 1(c)(i)21 marksPrepare the manufacturing account for the year ending 31 March 2019.
4. 1(c)(ii)4 marksSilver Slipper Ltd had the option of purchasing items rather than making them. Distinguish between 'relevant costs' and 'irrelevant costs', giving ONE example of EACH.
5. 2(a)4 marksOutline TWO differences between 'traditional costing approaches' and 'activity-based costing techniques'.
6. 2(b)6 marksDetermine the bid price for Product 427, using machine hours to apply overheads.
7. 2(c)12 marksDetermine the bid price of Product 427, using activity-based costing to apply overheads.
8. 2(d)(i)7 marksUsing the weighted average method, calculate the unit cost for the quarter.
9. 2(d)(i)(b)3 marksUsing the weighted average method, calculate the cost of goods transferred.
10. 2(d)(ii)3 marksCalculate the cost of ending work-in-progress.
11. 3(a)(i)4 marksCalculate the breakeven in units.
12. 3(a)(ii)2 marksCalculate the margin of safety.
13. 3(a)(iii)4 marksCalculate the number of units that must be sold if the company wants to make a total profit of $4 306 500 for the quarter.
14. 3(b)(i)2 marksCalculate the direct material price variance.
15. 3(b)(ii)2 marksCalculate the direct material quantity variance.
16. 3(b)(iii)2 marksCalculate the direct labour rate variance.
17. 3(b)(iv)2 marksCalculate the direct labour efficiency variance.
18. 3(c)(i)3 marksExplain the term 'ideal standard'.
19. 3(c)(ii)3 marksExplain the term 'practical standard'.
20. 3(d)(i)3 marksDistinguish among the THREE given methods for evaluating investment decisions.
21. 3(d)(ii)2 marksCalculate the payback period for Project A.
22. 3(d)(iii)4 marksCalculate the NPV for Project B.
23. 3(d)(iv)2 marksSuggest, using the NPV criterion, which project should be recommended to Unique Design, giving ONE reason.