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MAC3761: Management Accounting III
May/June Examination 2026 — Covering Papers from 2023 to 2025
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Management Accounting & Financial Management
Exam Revision Guide
MAC3761
Module Code:
Management Accounting III
Module Name:
May/June 2023, May/June 2024, May/June 2025
Papers Covered:
May/June Examination 2026
Prepared For:
100 marks per paper
Total Marks:
3 hours (writing time)
Duration:
Revise thoroughly. Understand the principles — don’t just memorise the steps.
Exam Revision Notes | MAC3761 | 2026
,MAC3761 | Exam Revision 2023–2025 Management Accounting III
PAPER 1 — SEMESTER 1 EXAM: MAY/JUNE 2023
Scenario: Intshe (Pty) Ltd is a vertically integrated food company with four divisions — Farming,
Leather, Butchery, and Ready-made Meal — each reporting to Head Office. The company processes
ostriches as joint products (meat, skin, feathers). The Farming Division is an investment centre; the
others are profit centres. Total marks: 100. Duration: 3 hours.
Page 2 of 26
,MAC3761 | Exam Revision 2023–2025 Management Accounting III
Question 1 50 marks
(a) 6 marks
Question: Identify and briefly explain THREE ethical concerns evident from the sce-
nario relating to Intshe (Pty) Ltd. (6)
Answer:
Key Concept
Ethics in management accounting centres on honesty, integrity, confidentiality,
and professional competence (CIMA/CGMA Code). Examiners want three dis-
tinct concerns — each clearly identified and linked to the scenario.
1. Conflict of Interest
The Farming Division manager proposed relocating the farm’s operations to a property
owned by a family member. That’s a textbook conflict of interest — the manager stands
to benefit personally from a decision he is supposed to make objectively on behalf of the
company. Even if the property is genuinely suitable, the relationship must be disclosed
and the manager should recuse himself from that particular decision.
2. Environmental Responsibility
Slaughtering operations generate significant waste. The scenario hints at inadequate
or informal disposal methods. Organisations have an ethical (and often legal) duty to
manage environmental impact. Dumping or ignoring waste harms communities and
ecosystems — and ultimately, the company’s own reputation.
3. Quality Control and Consumer Safety
The Ready-made Meal Division conducts its own quality inspections rather than using
an independent inspector. Self-inspection creates a risk that quality failures go unre-
ported to protect divisional targets. Consumers trust that food products meet safety
standards — compromising that trust is an ethical breach, not just a regulatory one.
Exam Tip
Always structure ethics answers as: name the concern → explain what it is → link
it specifically to the scenario. Generic answers earn no marks.
Page 3 of 26
, MAC3761 | Exam Revision 2023–2025 Management Accounting III
(b) 4 marks
Question: Identify TWO situations in which it would be acceptable for Intshe Head Of-
fice to interfere in the transfer pricing negotiations between the Butchery Division and the
Ready-made Meal Division. (4)
Answer: Transfer pricing is normally negotiated between divisions to preserve divi-
sional autonomy. But Head Office can legitimately step in when:
1. Negotiated prices deviate significantly from fair market value — If the
Butchery Division charges the Ready-made Meal Division a price far above (or below)
what an external buyer would pay, it distorts divisional performance and harms the
group as a whole. Head Office must intervene to protect overall profitability.
2. Strategic alignment is at risk — When transfer pricing decisions undermine the
company’s broader goals — say, the Ready-made Meal Division threatens to source
meat externally because the Butchery Division’s price is too high — Head Office should
intervene to keep the supply chain internal and prevent lost group profit.
Key Concept
The general principle: divisional autonomy is respected unless it conflicts with
group-wide profitability or strategic goals. Those two overrides justify Head Office
involvement.
(c) 6 marks
Question: Provide THREE points that indicate whether Intshe (Pty) Ltd operates a
divisionalised organisational structure. (6)
Answer: A divisionalised structure decentralises decision-making authority to semi-
autonomous business units. Three indicators in the Intshe scenario:
• Separate reporting lines: The Farming, Leather, Butchery, and Ready-made
Meal Divisions each report independently to Head Office — a classic divisional re-
porting structure rather than a functional one.
• Decentralised decision-making authority: Each division makes its own oper-
Page 4 of 26
]]
MAC3761: Management Accounting III
May/June Examination 2026 — Covering Papers from 2023 to 2025
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Management Accounting & Financial Management
Exam Revision Guide
MAC3761
Module Code:
Management Accounting III
Module Name:
May/June 2023, May/June 2024, May/June 2025
Papers Covered:
May/June Examination 2026
Prepared For:
100 marks per paper
Total Marks:
3 hours (writing time)
Duration:
Revise thoroughly. Understand the principles — don’t just memorise the steps.
Exam Revision Notes | MAC3761 | 2026
,MAC3761 | Exam Revision 2023–2025 Management Accounting III
PAPER 1 — SEMESTER 1 EXAM: MAY/JUNE 2023
Scenario: Intshe (Pty) Ltd is a vertically integrated food company with four divisions — Farming,
Leather, Butchery, and Ready-made Meal — each reporting to Head Office. The company processes
ostriches as joint products (meat, skin, feathers). The Farming Division is an investment centre; the
others are profit centres. Total marks: 100. Duration: 3 hours.
Page 2 of 26
,MAC3761 | Exam Revision 2023–2025 Management Accounting III
Question 1 50 marks
(a) 6 marks
Question: Identify and briefly explain THREE ethical concerns evident from the sce-
nario relating to Intshe (Pty) Ltd. (6)
Answer:
Key Concept
Ethics in management accounting centres on honesty, integrity, confidentiality,
and professional competence (CIMA/CGMA Code). Examiners want three dis-
tinct concerns — each clearly identified and linked to the scenario.
1. Conflict of Interest
The Farming Division manager proposed relocating the farm’s operations to a property
owned by a family member. That’s a textbook conflict of interest — the manager stands
to benefit personally from a decision he is supposed to make objectively on behalf of the
company. Even if the property is genuinely suitable, the relationship must be disclosed
and the manager should recuse himself from that particular decision.
2. Environmental Responsibility
Slaughtering operations generate significant waste. The scenario hints at inadequate
or informal disposal methods. Organisations have an ethical (and often legal) duty to
manage environmental impact. Dumping or ignoring waste harms communities and
ecosystems — and ultimately, the company’s own reputation.
3. Quality Control and Consumer Safety
The Ready-made Meal Division conducts its own quality inspections rather than using
an independent inspector. Self-inspection creates a risk that quality failures go unre-
ported to protect divisional targets. Consumers trust that food products meet safety
standards — compromising that trust is an ethical breach, not just a regulatory one.
Exam Tip
Always structure ethics answers as: name the concern → explain what it is → link
it specifically to the scenario. Generic answers earn no marks.
Page 3 of 26
, MAC3761 | Exam Revision 2023–2025 Management Accounting III
(b) 4 marks
Question: Identify TWO situations in which it would be acceptable for Intshe Head Of-
fice to interfere in the transfer pricing negotiations between the Butchery Division and the
Ready-made Meal Division. (4)
Answer: Transfer pricing is normally negotiated between divisions to preserve divi-
sional autonomy. But Head Office can legitimately step in when:
1. Negotiated prices deviate significantly from fair market value — If the
Butchery Division charges the Ready-made Meal Division a price far above (or below)
what an external buyer would pay, it distorts divisional performance and harms the
group as a whole. Head Office must intervene to protect overall profitability.
2. Strategic alignment is at risk — When transfer pricing decisions undermine the
company’s broader goals — say, the Ready-made Meal Division threatens to source
meat externally because the Butchery Division’s price is too high — Head Office should
intervene to keep the supply chain internal and prevent lost group profit.
Key Concept
The general principle: divisional autonomy is respected unless it conflicts with
group-wide profitability or strategic goals. Those two overrides justify Head Office
involvement.
(c) 6 marks
Question: Provide THREE points that indicate whether Intshe (Pty) Ltd operates a
divisionalised organisational structure. (6)
Answer: A divisionalised structure decentralises decision-making authority to semi-
autonomous business units. Three indicators in the Intshe scenario:
• Separate reporting lines: The Farming, Leather, Butchery, and Ready-made
Meal Divisions each report independently to Head Office — a classic divisional re-
porting structure rather than a functional one.
• Decentralised decision-making authority: Each division makes its own oper-
Page 4 of 26
