QUIZ
Diploma in Culinary Arts
Managerial Accounting
Instruction
Answer all questions on the examination booklet provided.
Examination rules and regulations apply
Present Value tables are provided on the last page.
Question 1.
Discuss the following types of budgets (9 marks)
a. Zero based budget
b. Rolling budget
c. Fixed budgets
Question 2
Chicory Hotel has been in operation for the last 5 years. The finance office
was tasked to prepare a cash budget for a period of three months starting
from July 2018. The following information is available.
a. Cash at Bank on 1st July, 2018 was $1,000,000.
b. The Hotel makes sales from rooms, food and beverage sales
c. Rooms sales increase by20% per month while food and beverage sales
increase by $35,000 monthly
d. Variable cost of sales average 30% of room and 40% food and
beverage sales for the month and they are paid for within the month
they are incurred.
e. The Hotel makes 60% of sales in cash while 40% is collected one
month after the sale
f. Fixed costs average $15,000 per month.
g. Tax is to paid in August for $35,000
h. Interest on borrowed capital due in September and amount to $10,000
i. Total Sales for June, 2018 were as follows
$
Rooms 200,000
Food 250,000
Beverage 100,000
Page | 1
Diploma in Culinary Arts
Managerial Accounting
Instruction
Answer all questions on the examination booklet provided.
Examination rules and regulations apply
Present Value tables are provided on the last page.
Question 1.
Discuss the following types of budgets (9 marks)
a. Zero based budget
b. Rolling budget
c. Fixed budgets
Question 2
Chicory Hotel has been in operation for the last 5 years. The finance office
was tasked to prepare a cash budget for a period of three months starting
from July 2018. The following information is available.
a. Cash at Bank on 1st July, 2018 was $1,000,000.
b. The Hotel makes sales from rooms, food and beverage sales
c. Rooms sales increase by20% per month while food and beverage sales
increase by $35,000 monthly
d. Variable cost of sales average 30% of room and 40% food and
beverage sales for the month and they are paid for within the month
they are incurred.
e. The Hotel makes 60% of sales in cash while 40% is collected one
month after the sale
f. Fixed costs average $15,000 per month.
g. Tax is to paid in August for $35,000
h. Interest on borrowed capital due in September and amount to $10,000
i. Total Sales for June, 2018 were as follows
$
Rooms 200,000
Food 250,000
Beverage 100,000
Page | 1
