Question 5 Increasing competition local, regional and/or global and decreasing profit margins (due largely to competitive product/service pricing) are forcing firms to use more accurate product costing/pricing methods and to implement more sophisticated management accounting practices (MAPs). To succeed, these implementations need to be based on a carefully designed, domain specific, comprehensive (i.e. inclusive of all relevant attributes) functional cost system within the organisation. In relation to the above scenario, discuss the following: a) Explain Cost-Volume-Profit Analysis and its objectives and limitations (10 marks) b) Discuss the three methods for calculating the break-even point with examples: The equation method, The contribution margin method, The graphical method (10 marks)

Question 4 Since its introduction more than three decades ago, the concept of activity-based costing (ABC) has exerted a considerable influence on the field of management accounting, and it is often considered to be one of the most dominant management accounting innovations (MAIs). ABC has been widely discussed in the accounting literature. It has come to occupy a central position in accounting textbooks and encyclopaedias, and it is frequently listed in handbooks on key management concepts and ideas. As a manager in an organisation, analyse the following with examples: a) Activity-based Costing and its process (7 marks) b) Just-in-time Concept (7 marks) c) Continuous Improvement and Quality Management (Kaizen) (6 marks)