Question 2 (a) Explain any four roles of a management accountant in the management process. (4 marks) (b) Distinguish between a cost centre and a cost object giving an example of each. (4 marks) (c) Itanda Foam Enterprises Ltd, manufactures mattresses of standard size. The product undergoes two production processes A and B before a final product is produced. The following information relates to the June, 2017. month of Process B: Opening work in progress Transfer from process A Closing work in progress Completed and transferred to finished goods stock Costs for the period: Production transferred from process A Conversion Materials Units '000' Nil 1,000 100 900 Shs '000' 9,000 5,700 3,600 Materials are introduced at the beginning of the process and conversion costs are to be applied uniformly throughout the process. The closing work in progress is estimated to be 50% complete.

Required: Prepare the following for Itanda Foam Enterprises Ltd for the year ended 30 June, 2017. (i) Statement of equivalent of production. (ii) Statement of cost per unit. (iii) Statement of valuation. (iv) Process B account.

Question 3 Explain any two assumptions underlying cost-volume-profit (CVP) analysis. (2 marks) With the aid of graphs, distinguish between the economist's and accountant's model of CVP analysis. (6 marks) (c) (i) (i) Prepare break even chart to represent the breakeven point and margin of safety computed in (b) above. (4 marks) Determine the number of units BCL had to sell in order to achieve a target profit of Shs 10 million. (3 marks) breakeven point sales. margin of safety. Bweya Clays Ltd (BCL) makes flower vases mainly for sale in the growing housing estates business in central Uganda. Each flower vase is sold at Shs 12,000. During the month of July 2017, budgeted production was 1,400 units while production costs were estimated as below: Direct labour per unit Direct material cost per unit Variable overheads per unit Fixed overheads

Required: Determine the:

Product Volume units Xcola 5,000 Yfun 4,500 Zmin 7,000 Rboom 7,500 Direct Material labour unit cost hours (Shs) Per unit 300 0.50 300 0.50 250 0.25 350 0.40 machine hours per unit 0.25 0.25 0.75 1.25 Labour cost per hour (Shs) 2,500 2,500 1,875 2,500 Question 4 (a) (i) Explain the term 'activity - based - costing (ABC). (2 marks) (ii) Describe the activity - based - costing process. (4 marks) (b) Real Enterprises Ltd (REL) produces four products namely; Xcola, Yfun Zmin and Rboom under the same plant. The following data relates to the period of May, 2017. Total overhead costs incurred during the month were as below: Material ordering Set up Machine maintenance Inspection Shs '000' 10,000 12,000 6,000 8,000 The following data was provided during the period under review: Number of Product Set ups Material Maintenance Inspections orders hours Xcola 1 2 3 10 Yfun 3 2 7 10 Zmin 2 1 4 15 Rboom 4 3 6 13

Required: Determine the cost per unit for each product using ABC.

(b) (i)Distinguish between time rate system and piece rate system of labour remuneration. Question 5 (a) Explain: (i) the term labour turnover. (2 marks) (ii) any four costs of high labour turnover in an organisation. (ii) Explain any four principles of a good incentive scheme. (2 marks) (4 marks) (c) Kibambi Rice Scheme (KRS) hired 120 casual workers during the harvest season of May, 2017. They all agreed to work for a minimum of eight hours a day for a period of two weeks, 5 days each week. Each worker was to be paid Shs 2,500 per hour for the normal working time and 60% of that rate for each extra hour worked. During week 1, 70 workers worked for two extra hours each, 15 workers worked one extra hour each while the rest worked for 1.5 extra hours each per day. During week 2, 100 workers worked two extra hours each, 10 workers worked for one extra hour each while the rest worked for 2.5 extra hours each per day.

Required: Determine the total labour expense for KRS for the harvest season of May, 2017. (8 marks) (Total 20 marks)

Question 6 (a)Explain the merits and demerits of standard costing in an organisation. (4 marks) b)Amex Ltd, makes sweaters and management realised that it would be a profitable venture if each sweater was sold at Shs 10,000. The following information has been provided for the month Standard ended 31 October, 2017. Actual 34,500,000 3,250 5,000 1.5 Total revenue (Shs) Labour costs per hour (Shs) Material cost per sq metre (Shs) Labour hours per sweater Production Budgeted Actual 3,000 4,000 1.4 Units 3,500 3,000 For each sweater, 2 square metres of textile material were used. All units produced were sold.

Required: Determine the following variances: (i) Materials price. (ii) Labour rate. (iii) Sales price. (iv) Labour efficiency.

Question 2 (a) Explain the features of human wants. (b) Discuss the causes of income inequality in Uganda. (c) Assuming that Petero made an initial deposit of Shs 15 million in CIDA bank whose cash ratio is 30%; calculate the credit multiplier and the total credit created by CIDA bank. (d) Explain the uses of capital in the development of an economy.

Question 3

(a) Explain the factors that limit the working of the price mechanism in the allocation of resources. (b) Describe the objectives of fiscal policy in an economy. (c) Describe the structure of the agricultural sector in Uganda. (d) Explain the demerits of privatization in Uganda.

Question 4 (a) Explain the instances when elasticity of demand is applied in an economy. (5 marks) (b) Describe the problems faced in compiling cost of living indices in Uganda. (5 marks) (c) State the regulations set by Bank of Uganda on the banking sector. (5 marks) (d) Explain the demerits of the export promotion strategy in Uganda.

Question 5 (a) (i) (ii) Describe the causes of cost push inflation in an economy. (4 marks) Distinguish between mild inflation and cost push inflation. (ii) Explain the causes of unemployment in Uganda. (8 marks)

Question 6 (a) Describe the demerits of a floating exchange rate to an economy. Identify the factors that determine the demand for labour in an economy. (b) Explain the characteristics of a good development plan. (4 marks) (8 marks) (c) Describe the demerits of economic dependence on the economy of Uganda.