CPA › Management accounting › Pilot December 2021

CPA Management accounting – Pilot December 2021 Past Paper & Answers

Unit: Management accounting

14 Questions

Download Complete Period

Get all questions and answers for "Pilot December 2021" in a single PDF file

Join the community! 550+ students upgraded in the last 24 hours. Limited Discount Seats Available

Questions

Download CPA Management accounting Pilot December 2021 past paper with detailed answers and marking scheme. This paper is based on KASNEB examination standards and is ideal for revision and exam preparation.

Access the full paper online, download the PDF, or study offline. Each question includes step-by-step solutions to help you understand key concepts in Management accounting.

Other Management accounting Past Papers

1a
Costing terms and concepts
​ ​​Distinguish between a cost centre and a cost unit.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
1b
Cost accumulation
​​Explain the salient features of Economic Order Quantity approach.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
1c
Cost accumulation
​ ​​Sanitize Company Ltd. manufactures a product from raw materials which are purchased at Sh.54 per kg. The company incurs a handling cost of Sh.350 and transport cost of Sh.400 per order. 

The carrying cost is Sh.0.50 per kg per month. The investment cost in the raw material is Sh.8. per kg. The annual production of the product is 94,500 units and each kilogramme of raw materials produces two (2) units of the final product. 

Required: 

(i) Calculate the economic order quantity. 

(ii) Advise how frequently orders should be placed for procurement. 

(iii) If the procurement manager proposes to order on quarterly basis, what discount should be negotiated if the company is not willing to incur extra costs.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
2a
Standard costing and variance analysis
​​Explain the following terms: 

(i) Material variances. 

(ii) Labour variances. 

(iii) Standard costing.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
2b
Standard costing and variance analysis
​ ​​To produce a litre of a product, 24 units of materials are required at a standard price of Sh.75 per litre. The actual production for the period is 75,000 units. Records proved that 80,000 units of materials were used at a price of Sh.73 per unit. 

Required: 
Calculate: 

(i) Material cost variance. 

(ii) Material price variance. 

(iii) Material usage variance.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
3a
The context of management accounting
​​Countries have development blue prints while other organisations have strategic plans. 

Citing challenges in achieving the objectives, explain why it is important for every organisation to have a longterm plan.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
3b
Product costing methods
​​Kasap Ltd. manufactures plastic bottles by mixing materials. The following information was obtained from their management accountant during the month of October 2021: 

  1. Materials used were 12,000 kg at Sh.13 per kg. 
  2. 12 employees worked 120 hours each at a rate of Sh.25 per hour. 
  3. Fixed overheads were absorbed at a rate of 100% of direct labour cost. 
  4. Actual output was 10,000 units. 
  5. There was no opening or closing work in progress.
  6. The company expects a normal 10% of materials input. There is no waste or scrap in the process. 

Required: 
(i) Calculate the expected cost per unit. 

(ii) Process account. 

(iii) If the normal loss is sold at Sh.10.00/kg what would be the revised cost of produced units.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
3c
Cost accumulation
​ ​​Explain the various risks associated with stock and inventory management in manufacturing during the COVID19 pandemic.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
4a
Introduction to cost estimation
​ ​​Explain the advantages of linear regression analysis in cost estimation
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
4b
Introduction to cost estimation
​ ​ ​ ​​Kalu Ltd. produces masks for sale. The following information was provided for the last 8 months in masks production:

Month
No. of masks (000)
Total cost (Sh.”000”)
1
5
50
2
6
53
3
6.5
55
4
6.7
59
5
7
62
6
7.5
64
7
8
66
8
9
72

Required: 
Formulate the cost estimation for the cost of producing 10,000 masks using: 

(i) High low method. 

(ii) Simple linear regression method. 
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
4c
Product costing methods
​​Highlight features of process costing.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
4d
Product costing methods
​ ​​Bibi Ltd. produces food which passes through two processes A and B then to finished products. 

Normal loss is estimated at 590 for each process and 10% scrap which realises Sh.80.00 for process A and Sh.200.00 for process B per unit. 

The following information is obtained

A
B
Materials (units)
1,000
70
Cost of materials per unit (Sh.)
125
200
Wages (Sh.)
28,000
10,000
Other direct expenses (Sh.)
8,000
5,250
Output in units
830
780

Required: 
Process accounts for the two processes assuming there was no stock or work in progress in the two processes.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
5a
Cost accumulation
​ ​ ​​Short Ltd. maintains separate cost and financial ledgers. The accountant has provided the following information from the trial balance. 

Cost ledger opening trial balance:
Sh.
Sh.
Financial ledger control account
-
250,000
Work in progress control account
120,000
Finished goods control account
110,000
Stores ledger control account 
20,000
250,000
250,000

Additional information: 
  1. Total sales during the period amounted to Sh.430,000. 
  2. Total purchases and other handling costs amounted to Sh.280,000. 
  3. The work in progress and stores ledger had the same values at the closing of the period. 
  4. The closing financial ledger balance was Sh.245,000. 

Required: 
(i) Profit for the period. 

(ii) Closing trial balance for the period.

Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
5b
Cost-volume profit analysis (break-even analysis)
​​The management of Kalu Ltd. has produced the following projections for the year 2022:

Sh.
Selling price per unit
200
Variable cost per unit
120
Fixed costs
4,000,000

Number of units produced and sold

70,000

Additional information: 
The management is considering the following options: 
  1. Reducing selling price by 10% to increase sales by 15%. 
  2. Reducing selling price by 20% to increase sales by 20%. 

Required: 
(i) Worksheet showing effects of each consideration. 

(ii) The best option from the analysis. 
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
All Periods
August 2025
April 2025
December 2024
August 2024
April 2024
December 2023
August 2023
April 2023
December 2022
August 2022
April 2022
December 2021
Pilot December 2021
September 2021
May 2021
November 2020
November 2019
May 2019
November 2018
May 2018
November 2017
May 2017
November 2016
May 2016
November 2015
Pilot September 2015
Success!

Comment posted! We'll give you feedback soon.