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    2023 Specimen Paper 4 Insert

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    l PLAY GAMES

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    2023 Specimen Paper 4 Insert

    Uploaded by

    l PLAY GAMES
    73 views4 pages

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    596204 2023 Specimen Paper 4 Insert

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    73 views4 pages

    2023 Specimen Paper 4 Insert

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    l PLAY GAMES

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    © All Rights Reserved
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    of 4

    Cambridge International AS & A Level

    ACCOUNTING9706/04
    Paper 4 Cost and Management Accounting For examination from 2023

    SPECIMEN INSERT 1 hour

    INFORMATION
    *0123456789*

    ● This insert contains all of the sources referred to in the questions.


    ● You may annotate this insert and use the blank spaces for planning. Do not write your answers on the
    insert.

    This document has 4 pages. Any blank pages are indicated.

    © UCLES 2020 [Turn over


    2

    Source A for Question 1

    W Limited uses a budgetary control system. To prepare the budget for the month of May, the directors
    of W Limited estimated a production of 1200 units and fixed overheads of $30 000.

    The following budgeted data is available for the production of one unit:

    Direct materials 2 kilos at $12 per kilo


    Direct labour 4 hours at $15 per hour
    Fixed overheads to be charged to products on the basis of direct labour hours

    The actual number of units produced and sold in May was 1120.

    The actual and budgeted unit selling price was $135.

    © UCLES 2020 9706/04/SI/23


    3

    Source B for Question 2

    Z Limited receives an order from an existing customer to manufacture a new product for a period of
    four years. To satisfy this order, the directors of Z Limited have to:

    1 Purchase a machine from overseas with an expected cost of $300 000. The machine has a useful
    life of 4 years with no residual value.
    2 Hire a specialised engineer.
    3 Purchase direct materials from a new supplier.

    The estimates relating to the operation of this order are:

    Cash inflow Cash outflow


    Year $ $
    1 200 000 140 000
    2 230 000 130 000
    3 240 000 110 000
    4 210 000 100 000

    The cost of capital is 10%. The relevant discount factors are:

    10% 12%
    0.909 0.893
    0.826 0.797
    0.751 0.712
    0.683 0.636

    © UCLES 2020 9706/04/SI/23


    4

    BLANK PAGE

    Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
    reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
    publisher will be pleased to make amends at the earliest possible opportunity.

    Cambridge Assessment International Education is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of the University of
    Cambridge Local Examinations Syndicate (UCLES), which itself is a department of the University of Cambridge.

    © UCLES 2020 9706/04/SI/23

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