• Questions on commerce and finance ( 7030)
  Paper 2
  
  1) Despite the numerous benefits of public limited companies, public corporation still exist.
  a) Explain four benefits of public limited companies to stakeholders. 10mks
  b) Discuss for reasons for the existence of public corporation in an economy. 10mks
  ______________________
  2) Free trade encourages the economy growth of countries.
  a) Explain five benefits of free trade.
  b)Despite the benefits of free trade, countries still restrict. Examine four methods use by countries to protect free trade.
  ______________________
  3) An individual is to insure his car against accident. He is face with two insurance companies A and B.
  a) Examine four reasons why he will choose A and not B. 10mks
  b) Discuss five determinants insurance companies take into account when charging premiums. 10mks
  ______________________
  4) Examine five consideration which may influence a trader in choosing a transport mode for the delivery of goods. 12mks
  b) Explain five reasons why an importer in Cameroon would consider sea transport in importing goods from Nigeria than road transport. 8mks
  ______________________
  5) Describe three main services each offered by commercial banks to traders based on the following options:
  a) Safeguarding assets. 6Mia
  b) Transfer of money. 8mks
  c) Lending of money. 6mks
  ______________________
  6) Free exchange rate system is characterises by regular movement in rate than fixed exchange regime.
  a) Differentiate between these exchange rate regime and state four reasons why countries convert currencies. 12mks
  b) Discuss four factors that cause fluctuations in exchange rates. 8mks​

LESSON NO 2 

WEEK BEGINNING 23RD TO 27TH MARCH 2020

COMPANY TAX ( GO TO WORD DOCUMENTS)

LESSON NO 3

DETERMINATION OF INCOME TAX ( GO TO WORDS DOCUMENTS)

LESSON NO 4 

WEEK BEGINNING 23RD TO 27TH MARCH 2020

U6C COST AND MANAGEMENT ACCOUNTING

OVER HEAD COSTING

Overhead costs are indirect cost that do not relate to production. They can only be apportioned and absorbed into the production centre. Examples of overheads include. Indirect  materials, indirect  labour, depreciation, rents and rates etc.

1. OVERHEADS ALLOCATION

They include those costs which are wholly identifiable with a particular cost centre and are allocated to that cost centre. E.g the salary of a machine supervisor can be allocated to the machining dept.

1. OVER HEADS APPORTIONMENT

These are those overheads which cannot charged to one particular cost centre because the benefits of the expenditure is felt by several cost centres  e.g rents and rate. The total has to be shared or apportioned over the different cost centres on some equitable basis. With rents and rates, the basis of apportionment is floor area, just like lighting and heating, but depreciation and insurance are apportioned using book values.

Example 1

MPL Ltd produces plastics involving four depts. A, B, C and D. with being the service cost centre. The budgeted overheads are given as follows

• Rents and rates                                                          50000 frs
• Lighting and heating                                                   30000 frs
• Depreciation of fixed assets                                       40000 frs
• Insurance                                                                    10000 frs
• Distribution and storage cost                                     20000 frs
• Administration costs                                                   60000 frs

The following information is available for the four departments

The total overhead of department D is allocated to the production departments on the basis of direct labour.

Work required

Prepare a statement to show the total production overhead for each department

Solution

Table of overheads apportionment and allocation