Assignment Questions: 1. As a Chief Management Accountant of a Multi-National Company evaluate your primary duties and responsibilities and compare some of the differences between financial accounting and managerial accounting. (3 Marks) 2. At the beginning of the school year, Mohamed Ahamed decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31, 2018 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job) $8,810 Purchase season football tickets in September 120 Additional entertainment for each month 310 Pay fall semester tuition in September 4,800 Pay rent at the beginning of each month 430 Pay for food each month 240 Pay apartment deposit on September 2 (to be returned December 15) 600 Part-time job earnings each month (net of taxes) 1,090 a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign. Sometimes an item may be a decrease in one period and an increase in a different period. Review the definitions of static budgets and flexible budgets. What weaknesses are shown by this cash budget? (3marks) b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets? (1 marks) c. Mohamed can see that his present plan sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be s at the end of December, with no time left to adjust. What are the budget implications for Mohamed Ahamed? (2 marks) 3. The following data are available in a manufacturing company for a yearly period: Particulars Fixed expenses: Wages and Salaries 9,50,000 Rent, Rate & Taxes 6,60,000 Depreciation 7,40,000 Sundry Admin Expenses 6,50,000 Semi Variable Expenses at 50% Capacity: Maintenance & Repairs 3,50,000 Indirect Labor 7.90,000 Sales Dept. Salaries etc. 3,80,000 Sundry Admin Salaries 2,80,000 Variable Expenses: Material 21,70,000 Labor 20,40,000 Other Expenses 7,90,000 Total 98,00,000 Sales at various levels are: Sales at various levels ce city 50% Capacity 100 60% Capacity 75% Capacity 90% Capacity 100% Capacity 200 Assume that the fixed expenses remain constant for all levels of production, the semi- variable expenses remain constant between 45% and 65% capacity: increasing by 10% between 65 percent and 80 percent capacity, and by 20 percent between 80% and 100% capacity. Required: a) Prepare a flexible Budget for the year at various capacity levels 60%, 75%, 90% and 100% (3 marks) b) Forecast the profit for the year in different levels of production at 60%, 75%, 90% and 100% (2 marks) c) Suggest at which level of production the company earn optimum profit. (1 mark)