QUESTION TWO

b

$)$

$$Management accounting deals more about the future more than the past, discuss

$($

$5$

$$Marks

$)$

c

$)$

$$Discuss the relevance of Cost, Volume and Price

$($

C

$-$

V

$-$

P

$)$

$$analysis in decision making for Small and Medium size enterprises in Kenya

$($

$5$

$$Marks

$)$

d

$)$

$$Product Z has a variable costs of Shs

$3$

$0$

$$per unit and a selling price of Shs

$8$

$0$

$$per unit. The fixed costs are Shs

$1$

$0$

$0$

$,$

$0$

$0$

$0$

$$per year.

i

$)$

$$If budgeted sales and production are

$2$

$0$

$,$

$0$

$0$

$0$

$$units$,$ calculate the budgeted profit

$($

or loss

$)$

$$for the year

$($

$3$

$$Marks

$)$

ii

$)$

$$Calculate breakeven point

$($

in units

$)$

$($

$2$

Marks

$)$

$$

iii

$)$

$$How many units need to be sold to achieve a target profit of shs

$3$

$0$

$,$

$0$

$0$

$0$

$,$

$0$

$0$

$0$

$$per year?

$($

$2$

$$Marks

$)$