1: Cost classification 5 marks The provision of library services by municipalities is a contentious issue, as it is seen as a partial unfunded mandate. In terms of Sections 35 to 37 and 44 of the Local Government: Municipal Finance Management Act, Act 56 of 2003 (MFMA), it is essential that costs relating to the provision of such a service are properly analysed and classified. In the particular case under investigation, costs relating to a branch library include library staff salaries; equipment such as code scanners, computers and copiers; library materials such as stationery, exhibition materials and some products available for lending not provided by the provincial department; asset maintenance costs; services, including electricity, water and waste services; security services; ICT services; financial services; HR services and services contracted in for projects such as art exhibitions, motivational speakers and reading clubs. This branch library is part of a civic centre in a sub-region of the municipality and cannot measure consumption services for the library alone. It also shares security services with other users of the complex. The municipal maintenance team provides maintenance and all other support services are also shared with other municipal functions. Classify each of the following costs both by traceability (direct or indirect) and behaviour (fixed, mixed or variable): a. Salary of the branch librarian; b. Salary of the City Manager; c. Book lending issuing unit costs; d. Library equipment; e. Civic centre utility services (electricity, water, waste). BPA Hons in Public and Development Management FINANCIAL MANAGEMENT AND COST ACCOUNTING NQF Level 8 For questions 2 to 7, use the FIRST four digits of your Stellenbosch University student number to replace wxyz in each of the Rand values where indicated. For example, if the first four digits of your student number are 6012, the salaries of social and field workers in Question 2 below would be R7 506 012