FACULTY OF ACCOUNTING & INFORMATICS

DEPARTMENT OF FINANCE & INFORMATION MANAGEMENT

(PMB)
DEPARTMENT OF MANAGEMENT ACCOUNTING (DBN)

QUALIFICATION(S): DIPLOMA IN MANAGEMENT ACCOUNTING

DIPLOMA IN MANAGEMENT ACCOUNTING (ECP)
DIPLOMA IN ACCOUNTING

MODULE CODE(S): COMA101, CACN101 & CAAU101

DUE DATE: 24 MARCH 2023 at 14h00 uploaded on Moodle

2023
ASSIGNMENT
Please form groups of no more than 5 students

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Assignment topic: Cost Classifications
TOTAL MARKS: 50
DUE DATE: Friday, 24 March 2023, uploaded on the COMA101 Moodle
classroom, no later than 14h00. One online submission per group.

Assignment Instructions:

1) You are required to form a group of 5 members. You will not be permitted to
form groups of less than or more than FIVE members.
2) On submission of your assignment, in the answer booklet complete the
contribution report acknowledging each member’s efforts towards the
completion of the assignment.

3) The marking rubric is also attached to the assignment so students are aware
of how they are assessed and also ensure they meet the assignment
assessment criteria before submission.
4) Each assignment will be put through TURNITIN to check for any plagiarism,
so ensure that all Written sources are used with full attempt of rewording /
paraphrasing (a maximum of 20% plagiarised will be acceptable). All
acknowledgement and references of sources should be provided. NO COPY
AND PASTE. You will be penalised.
5) You will be penalised for any late submission of this assignment at 5% per
day.
6) Upload on single PDF document per group on the Moodle classroom.

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Loadshedding has been prominent for almost 2 decades for South Africans.
According to ESKOM, the rolling blackouts started almost towards the end of
2007. A lot of businesses are being affected differently by this issue. On the
other hand, the situation doesn’t seem to be getting any better as the years
progress. This issue has caused a major hit on the country’s economy. A lot of
plans were implemented but turned out to be unviable as the country is
currently facing the same problem till today. In fact, it has gone worse to a point
that there are several power outage schedules in one day. Daily Maverick
suggests that one way to mitigate this risk is not to depend on a single supplier
and diversify generation technologies.
Required:
In a group, you are required to visit a local convenience shop and interview the
owner or manager regarding the impact of load shedding on the following
points:
• Direct materials
• Direct labour
• Overheads
In addition to the above requirements, provide a recommendation you would
give the business to improve its profitability and its operations during load
shedding.

*Please use the answer booklet provided to prepare your assignment.

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 COST ACCOUNTING 1A ASSIGNMENT ANSWER
BOOKLET

Group member student number, surname and initials

22342901 Mazongolo.A
________________________________________________________________
________________________________________________________________
22358209 Mpahlwana .S

________________________________________________________________
22129003 Hlengwa.A

________________________________________________________________
22310361 Nojiyeza.L

22331273 Nomtyhala .S
________________________________________________________________

Contribution of each group member to the assignment

Mazongolo. the submitter
________________________________________________________________
Mpahlwana. the paraphraser
________________________________________________________________
Hlengwa. the rough script draft
________________________________________________________________
Nomtyhala. pdf editor
________________________________________________________________
Nojiyeza. the interviewer
________________________________________________________________

Name of the shop visited

Miguel's Bakery
________________________________________________________________
Location of the shop
Shop 89 Greater Edendale Mall,Moses Mabhida Rd, Edendale, Pietermaritzburg,3201
________________________________________________________________
Date visited
10 March 2023
________________________________________________________________

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 Identify two examples direct materials:

Milk and Flour

________________________________________________________________

Impact on direct materials:

*Direct material in process might gets wasted during the power cuts.
________________________________________________________________
*Shortage of stock due to many damages of stock.
________________________________________________________________
*Supply prize of direct material might increase due to inefficiency
________________________________________________________________
*Items that need to be refrigerated after consumption gets spoilt,eg milk
________________________________________________________________
*Due to failure of making orders on time because of loadshedding
________________________________________________________________
leads to technical challenges that might lead to shortage of raw materials.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

Slicer and Bakery chef

identify two examples of direct labour: ________________________________

Impact on direct labour:

*Employees over work due to output constraints to meet targets
________________________________________________________________
*Workers get demotivated due to power cuts.
________________________________________________________________
*Direct labour cost will increase due to extra working hours
________________________________________________________________
*It slows down Employees productivity.
________________________________________________________________
*Some workers will be engaged with absenteeism.
________________________________________________________________
*Workers might get injured or ill due to work pressure and businesses
________________________________________________________________
might face penalties if they didn't comply with COIDA
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

5
 Dishwasher and Generator
Identify two examples of overheads: ________________________________
Impact on direct overheads:
*Electricity is saved
________________________________________________________________
*Rent expense remain constant regardless of loadshedding
________________________________________________________________
*Reduction of bills due to less consumption of water and electricity
________________________________________________________________
*Administration cost will decrease due to less printouts
________________________________________________________________
*CCTV footage might be damaged due to power cuts
________________________________________________________________
*Fixed marketing costs are a waste especially the electronic advertisement
________________________________________________________________
won't reach all targeted market
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

Recommendation to the business:

*Use generator as an alternative energy supply.

________________________________________________________________
*Hire skilled technicians can help to diagnose and repair equipment
________________________________________________________________
Quick and effectively
________________________________________________________________
*Prioritize tasks to identify the most important tasks that need to be
________________________________________________________________
Completed first and focus on those .
________________________________________________________________
*Consider offering incentives for good attendance such as bonuses....
________________________________________________________________
*Use the power cuts as an opportunity to take short break
________________________________________________________________
*Take regular breaks throughout the day to rest and recharge....
________________________________________________________________
________________________________________________________________
@ (https //businesstech.co.za)
________________________________________________________________
@(https//www.lol.co.za)
________________________________________________________________
@Ask I
________________________________________________________________
________________________________________________________________

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________________________________________________________________
________________________________________________________________

MARK ALLOCATION
Marks
Student details
Contribution of each student 5
Turnitin Plagiarism report:
<10% 10
10 – 20% 5
>20 2
Shop name
Location 5
Date
Identify and Impact on direct materials
Identify and Impact on direct labour 15
Identify and Impact on direct overheads
Recommendation to the business 10
TOTAL 50