FACULTY OF COMMERCE AND LAW

GRDUATE SCHOOL OF BUSINESS

MASTER OF BUSINESS ADMINISTRATION

ACCOUNTING FOR MANAGERS (MBAZ 502)

JANUARY 2024: ASSIGNMENT 1

INSTRUCTIONS FOR EACH ANSWER

(a) Start each answer on a fresh page.

(b) Maximum number of pages: 6 pages per question on average. You must stick to the
stipulated pages otherwise you lose marks.
(c) Font type: Times New Roman.
(d) Font size 12.
(e) Double line spacing.
(f) Upload on MyVista in MS-WORD only.
(g) Avoid using mobile phones to upload your assignments.
(h) Do not upload PDF files.
(i) Assignments submitted after the deadline will NOT be marked. You are strongly
advised to stick to the deadline

Warning Against Plagiarism

ASSIGNMENTS ARE INDIVIDUAL TASKS AND NOT GROUP ACTIVITIES. (UNLESS
EXPLICITLY INDICATED AS GROUP ACTIVITIES)

Copying of text from other learners or from other sources (for instance the module, prescribed
material, or directly from the internet) is not allowed – only brief quotations are allowed and
then only if indicated as such.
You should reformulate existing text and use your own words to explain what you have read. It
is not acceptable to retype the existing text and just acknowledge the source in a footnote – you
should be able to relate the idea or concept, without repeating the original author to the letter.

The aim of the assignments is not the reproduction of existing material, but to ascertain whether
you have the ability to integrate existing texts, add your own interpretation and/or critique of the
texts and offer a creative solution to existing problems.

Be warned: students who submit copied text will obtain a mark of ZERO for the
assignment and disciplinary steps may be taken by the Faculty and/or University. It is also
unacceptable to do somebody else’s work, to lend your work to them, or to make your work
available to them to copy.

DO NOT HIRE ZOU LECTURERS BOTH FULL-TIME AND PART-TIME FOR

PRIVATE TUTORIALS.

– be careful and do not make your work available to anyone!

QUESTION 1

(A) The operating cost of Gweru Machinery Limited, a firm that produces special mining
equipment for the last six months are as follows.

Month Cost Production volume

June 250 000 150
July 260 000 185
August 220 000 145
September 255 000 151
October 288 000 153
November 230 000 148

Required
a). Using the high-low method of cost estimation, determine the
i) variable cost per unit
ii) total fixed cost
iii) the cost function

b). What should be the cost in December when output is expected to 130 units of machinery?

(B) Consider the following costs of XML limited over the relevant range of 5000 to 20 000 units
produced.
Units Produced (U ) 5 000U 10 000U 15 000U 20 000U
Variable cost $200 000 $? $? $?
Fixed cost $1 800 000 $? $? $?
Total cost
Cost per unit
Variable cost $? $? $? $?
Fixed cost $? $? $? $?
Total cost $? $? $? $?
(25 marks)

QUESTION 2

As the General Manager of a holding company in the leisure industry, discuss how you would
use ratio analysis to inform your day to day running of the business. Give a critique to the
usefulness of ratio analysis in performance measurement in organisations. [25 marks]