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Cash budget and zero budgeting revision question (NBAA, B5, NOV 2018)

Mama Kadogoo likes baking and has decided to start her own business in Goba. She has developed a delicious Low Calories Cake and has created two varieties: Vanilla Cream and Chocolate Sweet.   Mama Kadogoo hopes to commence production in January 2019 and has conducted some market research to assess the interest in, and demand for her products.  She has TZS.5,000,000 … Read the rest

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Revision question on budgetary slack and preparation of sales forecast.

“At times, subordination may try to play games and build in budgetary slack.” Horngren et al (2009).


  1. What is “budgetary slack” and describe two ways in which subordinates may attempt to create budgetary slack and state how senior managers may reduce the budgetary stack.
  2. Describe the possible reason why subordinates build in budgetary slacks
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Standard costing and variance analysis revision question (NBAA, B5,NOV 2018)

Rorya Cakes Bakery makes a single product called Delicious Cakes. The company is using marginal costing to value its product. The company standard cost card for Delicious Cakes comes from the parent company called Rorya Oven headquartered in Malaysia, which contains the following:

Direct Material:                                                                                        TZS

Ingredient A:                            (2 kg @ TZS.1,500)                        3,000

Ingredient B:                            (1.5 litres @ TZS.1,200)               … Read the rest

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CVP analysis revision question 2 (NBAA, B5, NOV 2018)

The MAISHA is a medium sized theatre, with a maximum capacity of 500 seats, offering a variety of music events to its patrons.  In the past, the event offered were of low budget, featuring local and regional singers and musicians.   This year, the theatre engaged the services to music director who negotiated and booked two well known artists for event … Read the rest

Budget and budgeting revision question (for ACCA examination revision)

Tanzania Glass Company is preparing its cash budget for the first quarter of 2015. The use of the company’s main manufacturing equipment is characterize by frequent stoppages to let it cool down to operating temperatures, a reminder that the equipment is due for replacement. The resulting slow pace of production has led to the incurrence
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Just in time (JIT) Revision question (NBAA, B5, NOV 2018)

MARINGA Video Company sells a package of blank videotapes to its customers all over Tanzania.   It purchases videotapes from MAYUNGA Tapes company at TZS.140,000 a package.   MAYUNGA Tapes Company pays all freight to MARINGA Video Company.   No incoming inspection is necessary because MAYUNGA Tapes  Company has a  superb reputation for the delivery of quality merchandise.    The annual demand of  MARINGA  … Read the rest

Transfer pricing revision question (NBAA, B5,NOV 2018)

 A large business consultancy firm is organized into several divisions.  One of the divisions is the Information Technology (IT) Division which provides consultancy services to its clients as well as to the other divisions of the firm. The consultants in the IT Division always work in a team of three professional consultants on each day … Read the rest