9706_w23_qp_42

Cambridge International AS & A Level * 3 6 1 2 2 8 4 8 6 5 * ACCOUNTING 9706/42 Paper 4 Cost and Management Accounting October/November 2023 1 hour You must answer on the question paper. You will need: Insert (enclosed) INSTRUCTIONS ● Answer all questions. ● Use a black or dark blue pen. ● Write your name, centre number and candidate number in the boxes at the top of the page. ● Write your answer to each question in the space provided. ● Do not use an erasable pen or correction fluid. ● Do not write on any bar codes. ● You may use an HB pencil for any diagrams, graphs or rough working. ● You may use a calculator. ● You should present all accounting statements in good style. ● You should show your workings. INFORMATION ● The total mark for this paper is 50. ● The number of marks for each question or part question is shown in brackets [ ]. ● The insert contains all of the sources referred to in the questions. This document has 8 pages. Any blank pages are indicated. DC (PQ) 312035/2 © UCLES 2023 [Turn over

Cambridge International AS & A Level * 3 6 1 2 2 8 4 8 6 5 * ACCOUNTING 9706/42 Paper 4 Cost and Management Accounting October/November 2023 1 hour You must answer on the question paper. You will need: Insert (enclosed) INSTRUCTIONS ● Answer all questions. ● Use a black or dark blue pen. ● Write your name, centre number and candidate number in the boxes at the top of the page. ● Write your answer to each question in the space provided. ● Do not use an erasable pen or correction fluid. ● Do not write on any bar codes. ● You may use an HB pencil for any diagrams, graphs or rough working. ● You may use a calculator. ● You should present all accounting statements in good style. ● You should show your workings. INFORMATION ● The total mark for this paper is 50. ● The number of marks for each question or part question is shown in brackets [ ]. ● The insert contains all of the sources referred to in the questions. This document has 8 pages. Any blank pages are indicated. DC (PQ) 312035/2 © UCLES 2023 [Turn over

2 1 Read Source A in the insert. (a) Explain what is meant by ‘activity based costing’ (ABC). ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ............................................................................................................................................. [3] (b) Calculate the overhead absorption rate if a single rate is used. ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ............................................................................................................................................. [1] (c) Prepare the budgeted statement of profit or loss for each product if absorption costing is used. M1 V1 $ $ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ [7] © UCLES 2023 9706/42/O/N/23

2 1 Read Source A in the insert. (a) Explain what is meant by ‘activity based costing’ (ABC). ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ............................................................................................................................................. [3] (b) Calculate the overhead absorption rate if a single rate is used. ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ............................................................................................................................................. [1] (c) Prepare the budgeted statement of profit or loss for each product if absorption costing is used. M1 V1 $ $ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ [7] © UCLES 2023 9706/42/O/N/23

3 (d) Prepare the budgeted statement of profit or loss for each product if ABC is used. M1 V1 $ $ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ Workings: [7] [Turn over © UCLES 2023 9706/42/O/N/23

3 (d) Prepare the budgeted statement of profit or loss for each product if ABC is used. M1 V1 $ $ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ ........................................................................................... ............................ ............................ Workings: [7] © UCLES 2023 9706/42/O/N/23 [Turn over