The following are the estimated details for the forth coming financial year - 1 January 2023 - 31 December 2023 :

Production and Sales in units - 90%capacity

K000

Revenue 840000

Costs:

Direct Material 110000

Direct Labour 90000

Variable overheads 60000

Direct Expenses 20000

Production overheads (hybrid cost, 40% fixed , the

Rest variable ) 70000

Rent ( fixed ) 20000

Management Salaries (fixed ) 80000

Depreciation (fixed) 8000

Other overheads (fixed) 85000

REQUIRED:

i. Flex the Budget to60%, 70%, 80% and 100 % activity level sand determine the Profit / ( Loss) for the Fixed Budget ( 90% ) and flexed Budgets 

Explain the role of the following institutions / bodies in the Development Planning process of GRZ :

1.  
2. National Development Co-ordinating Committee 
3.  
4. Provincial Development Co-ordinating Committee ( PDCC) ( 2 marks )
5.  
6. District Development Co-ordinating Committee ( DDCC) ( 2 marks )
7.  
8.  i. Outline the main contents of the Long-term Development Plan of GRZ ( 6 marks )
9.  

ii. Briefly explain the key stages involved in the formulation of the National Development Plan of GRZ ( 8 marks )

(Total = 20 marks)

QUESTION2

2. Explain the following terms, giving an appropriate example in each case:
4. Feedback control
6. Feed forward control
8. Fixed Budget
10. Flexible Budget ( 8 marks )

B . Chapala Municipal Council uses a feed forward control approach in formulation its Budgets for performance analysis purpose.

QUESTION 3

A i. Explain and give an appropriate example of each of the key stages that are that are involved in the successful implementation of Zero Based Budgeting (ZBB)

( 6 marks

ii. Briefly explain the following terms, in each case giving an appropriate example:

• Commitment Accounting
• Cash Accounting
• Accrual Accounting
• Expenditure Profiling ( 4 marks )

1. In each of the following transactions indicate the amount to be recognized under Cash Accounting and Accrual Accounting basis:

Year ending 31 December 2020	CASH	BASIS	ACCRUAL	BASIS
	Income Statement( K )	SOFP ( K )	Income Statement( K )	SOFP ( K )
Bought office Equipment on credit from JMK Ltd K20 million
Paid rates by Cheque K5000
Sold goods on credit to AMK Ltd K8000
Rent Payable per annum K10000
Wages and salaries incurred K 8million ( of which K 6million was paid)
Commission Receivable K2million.
Discounts Received on prompt settlements of Trade Payables K 500
Sold office equipment with carrying value ( NBV ) K3million at K 2.5 million
Annual Depreciation of Plant at 10% on K10million cost of Plant
Discounts Allowed to Sundry Debtors for prompt payment of their account K1500