IBP Superior Qualification
Summer 2024
The Institute of Bankers Pakistan
Time Allowed: 3 Hours Maximum Marks: 100
Management Accounting for Financial Services
Date: June 28, 2024 JAIBP (Stage III) Roll No:
Instructions:
i. Attempt ALL questions;
ii. Answers must be neat, relevant and brief;
iii. In marking the answers, the examiner takes into account clarity of exposition, logic of arguments,
presentation and language;
iv. Read the instructions printed inside the top cover of answer script CAREFULLY before attempting the
paper;
v. DO NOT write your Name, Access No or Roll No. etc. anywhere inside the answer script(s);
vi. Candidates are advised NOT to mark any of the objective answer on the Question Paper, otherwise their
paper will be cancelled;
vii. Question Paper must be returned to invigilator before leaving the examination hall.
viii. Ensure that you shade your choice on the Optical Mark Reader sheet correctly. Only ONE circle must be
shaded as shown below:
Correct Way: A B C D (Choice B is selected)
Incorrect Ways: A B C D
SECTION B: SUBJECTIVE
Attempt ALL Questions. (55 Marks)
Q2.
A. Differentiate the following:
i. Prime Cost and Conversion Cost (02 Marks)
ii. Controllable Costs and Non-controllable Cost (02 Marks)
B. Use the high–low method to calculate the total fixed cost and variable rate per unit of the following:
(06 Marks)
Month Activity in Units Total Cost (Rs.)
Jul-24 400 1,000
Aug-24 500 1,200
Sep-24 600 1,400
Oct-24 700 1,600
Nov-24 800 1.800
Dec-24 900 2,000
Q3.
A. ABC Limited presented following data for the month Period ended June 30, 2023. (07 Marks)
S. No. Description Rupees
i. Cost of Goods Manufactured during the period 90,000
ii. Direct Material Used 30,000
iii. Cost of Goods Sold 100,000
iv. Total Labor Cost 48,000
v. Direct Labor Cost 38,000
vi. Raw Material Purchased 40,000
vii. Cost of Goods available for Sale 125,000
viii. Work in Process Opening 25,000
ix. Work in Process Closing 15,000
Summer 2024 - MAFS Page 1 of 4
IBP Superior Qualification
Summer 2024
The Institute of Bankers Pakistan
x. Sales on Account 200,000
xi. Indirect Material Used 1,000
Required:
Prepare all the journal entries of ABC Limited transactions.
B. During the period under review Rehan Limited incurred following costs:
Particulars Amount in Rupees
Direct Labor 2,500,000
Factory Overheads 4,000,000
Direct Material Purchases 1,500,000
Particulars Beginning (in Rupees) Ending (in Rupees)
Finished Goods 250,000 330,000
Work in Process 450,000 550,000
Materials 75,000 125,000
Required:
i. Calculate the Total Manufacturing Cost for the year (04 Marks)
ii. Calculate the Cost of Goods Manufactured for the year (02 Marks)
iii. Calculate the Cost of Goods Sold for the year (02 Marks)
Q4. The selected below information relates to ABC Limited for the month of April 2023.
Standards
Material 3.5 Feet per unit @ Rs. 2.60 per Foot
Labor 5 Direct labor hour per unit @ Rs. 8.50 per hour
Actuals
Material 95,625 Feet used (Pipe purchase 100,000 feet @ Rs. 2.50 per foot)
Labor 122,400 direct labor hours incurred per unit @ Rs. 8.35 per hour
During the period under review 25,500 units were produced
Required:
i. Material Usage Variance (03 Marks)
ii. Labor Efficiency Variance (03 Marks)
Q5. You are provided with the following information of ABC Limited: (07 Marks)
Particulars Amount in Rupees
Sales for the year 2,000,000
Variable Cost for the year 1,200,000
Fixed Cost for the year 700,000
Required:
1. Break Even Sales
2. Margin of Safety
3. Sales Revenue if required profit is Rs. 500,000
Q6. Following is the data of Saleem Corporation: (08 Marks)
Free Cash Flow
Forecast Period
(Rupees in Million)
Year - 01 18.50
Year - 02 21.30
Year - 03 24.10
Year - 04 19.90
Year - 05 21.30
Summer 2024 - MAFS Page 2 of 4
IBP Superior Qualification
Summer 2024
The Institute of Bankers Pakistan
Discount Rate for Saleem Corporation 11%
Debts on Balance Sheet 50.00
Terminal Value after 5 years (Gordon Growth Model) 316.90
Required:
Calculate the Fair Value of Equity of Saleem Corporation.
Q7.
A. Explain concept of Customer Profitability? Outline the key components involved in measuring
profitability measurement components? (06 Marks)
B. State any THREE Transfer Pricing policies used by organizations (03 Marks)
X ───── END OF PAPER ───── X
Summer 2024 - MAFS Page 3 of 4
IBP Superior Qualification
Summer 2024
The Institute of Bankers Pakistan
THIS PAGE IS INTENTIONALLY LEFT BLANK
Summer 2024 - MAFS Page 4 of 4
