NATIONAL OPEN UNIVERSITY OF NIGERIA
14/16, AHMADU BELLO WAY, VICTORIA ISLAND, LAGOS
SCHOOL OF MANAGEMENT SCIENCES
MARCH, 2014 EXAMINATIONS
Course Code: ENT 425 2 UNITS
Course Title: MANAGEMENT ACCOUNTING
Time Allowed: 2 HRS 30 MINS
Instructions: 1. Attempt Question 1 and any other two (2) Questions.
2. Question 1 is compulsory and carries 30 marks
while the other 2 Questions carry 20 marks each.
3. Present all your points in coherent and orderly manner
1a] State eight differences between Management Accounting and Financial Accounting.
Explain any five of them. 15 MARKS
b] Explain the four major trends influencing Management Accounting today. 10 MARKS
c] List the main work activities of a management accountant. 5 MARKS
2a] Define the term ‘break-even point’. 5 MARKS
b] A company makes a single product with a sales price of N10.00 and a marginal cost of
₦6.00. Fixed costs are ₦60,000.00 per annum. Calculate:
(a) Number of units to breakeven;
(b) Sales at breakeven point;
(c) Contribution/Sales ratio;
(d) What number of units will need to be sold to achieve a profit of N20,000.00 per annum?
(e) What level of sales will achieve a profit of N20,000.00 per annum? 15 MARKS
3a] Explain Net Present Value method of capital investment decision. 4 MARKS
b] State three advantages and disadvantages each of Net Present Value(NPV). 6 MARKS
c] At a cost of capital of 10% per annum, calculate the NPV of Ogba’s project.
Given an units at cost of N200, 000.00 and inflow of N60,000.00, N60,000.00,
N80,000.00, N60,000.00 and N40,000.00 for years 1, 2, 3, 4, and 5
respectively. 10 MARKS
4a] Define a budget. 6 MARKS
b] Define and describe the master budget. 14 MARKS
5a] Define Budgetary Control. 4 MARKS
b] Discuss the advantages and disadvantages derivable from
Budgetary Control System in an organisation. 16 MARKS
You can get the exam summary answers for this course from 08039407882
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