Management accounting to inform decision-making

Practice

Recall it first, then use it — testing yourself builds the memory, where rereading the notes above only feels easier.

Recall and application shuffled together — you have to work out what each item wants before you can answer it, which is the part the exam actually tests. Both kinds feed the same spacing schedule, so anything you miss comes back sooner.

Say the answer out loud before flipping — that attempt is where the learning happens, even when you get it wrong.

Exam-style only. Instant feedback, shuffled each attempt, best score saved on this device.

What actually comes up

One unified task every year, parts (a) through (f) or (g), all on ONE real small business choosing between two options — building a chain of calculations that all feed into a single final recommendation. Marked holistically on a 0–8 scale across the whole task, not per part.

Across 4 years

The pattern — what to prepare

The 2022 paper ↗ Marking schedule ↗

Question One — A strategic decision and a cash budget for the new machine

Alumnz Limited is considering a $720,000 factory expansion and new machine to increase aluminium dinghy production, partly financed by a two-year loan.

• Dinghy sales: 25% cash, 75% credit
• Credit sales collected 80% the month after sale, 19% the second month after, 1% bad debts

• a Explain why the decision to purchase a new machine is a strategic decision for Alumnz Limited. Achieved
• b Calculate the cash from credit sales for October and November. Achieved
• c(i) Complete the estimated receipts section of the cash budget for aluminium dinghies for October and November. Merit
• c(ii) Calculate the surplus or deficit of cash for October and November. Merit
• c(iii) Calculate the estimated bank balance at the end of November. Merit
• d With a final machinery payment and a quarterly provisional tax payment due in December, explain how the information in the cash budget will assist the finance manager's discussion with the bank about a possible overdraft. Merit

Question Two — Break-even, target profit, and the relevant range

The new machine can produce up to 40 aluminium dinghies per month; selling price

• Selling price
  0,000, variable cost $5,500, fixed costs
  3,500/month
• Machine capacity: 40 dinghies/month

• a Calculate the monthly break-even sales of aluminium dinghies. Achieved
• b(i) Calculate the average monthly sales, in units, needed to earn an annual profit of $804,000 from aluminium dinghy sales. Merit
• b(ii) Explain whether the average monthly sales units calculated in (b)(i) are within the relevant range for the new machine. Merit
• c Explain in detail, with reference to relevant calculations, whether the annual profit of $804,000 is achievable given the seasonal pattern of estimated monthly dinghy sales. Excellence

Question Three — The recommendation

Whether Alumnz Limited should purchase the new machine.

• a Make a justified recommendation to the directors as to whether or not the company should purchase the new machine, including detailed financial information (drawing on previous answers), detailed non-financial information, and a conclusion. Excellence

The 2025 paper ↗ Marking schedule ↗

The Task — Noa's photography business

Noa is deciding for 2026 and beyond between adding video to his wedding photography package, or working contract for a local photographer over winter.

• Fixed costs when video added: $84,000/year (workshop, insurance, other fixed costs)
• Contribution margin per wedding with video: $2,100
• Current (2025/26) annual profit: $29,400 from 32 weddings

• a Complete the comparative cash budget for the six winter months for Noa's two options. Achieved
• b Explain, using relevant figures, why it is important for Noa to prepare a cash budget for the following six summer months. Merit
• c Calculate the break-even number of weddings when video is added to the wedding photography package. Achieved
• d Using your answer to (c), explain whether Noa would earn a profit if he added video but only worked the winter season in 2026/27. Merit
• e Noa's current (2025/26) annual profit from 32 weddings is $29,400. How many weddings with video added would he need to book to reach this profit? Merit
• f Make a recommendation to Noa about whether he should add video and continue with wedding photography, or work for the local photographer on contract over the winter months — considering the immediate and long-term impact on Noa and his family. Excellence

The 2024 paper ↗ Marking schedule ↗

The Task — Aqua Stone water features

Lily, owner of Aqua Stone, is deciding whether to open a new retail store or continue factory sales to garden centres at a reduced level.

• Factory sales: selling price $700, variable cost $400 per water feature
• Factory fixed costs: $504,000/year
• Current factory-only annual profit: $252,000

• a Calculate the contribution margin per water feature and the annual break-even number of water features for factory sales to garden centres. Achieved
• b Explain, using relevant figures, the importance of the contribution margin in determining break-even sales and profit for factory sales. Merit
• c Calculate the annual profit that would be earned if the new retail store is not opened and factory sales decrease from 210 to 180 water features per month. Achieved
• d Explain the impact the lower profit could have on Aqua Stone and its employees if the new retail store is not opened. Merit
• e Calculate the margin of safety percentage for the expected retail store sales over the first six months. Merit
• f Complete the comparative cash budget for the first six months for proceeding, or not proceeding, with the retail store. Achieved
• g Make a recommendation to Lily about whether she should go ahead with the retail store, or continue to operate the factory with a reduced level of sales — considering the immediate and long-term impact of adding the retail store. Excellence

The 2023 paper ↗ Marking schedule ↗

The Task — Tauika fishing and dive tours

Manu runs fishing trips with Tauika, and is deciding whether to go into partnership with Pania and add dive tours to the business.

• Fishing: fixed costs $63,000/year, contribution margin $70/client
• Diving: break-even = 4 clients/tour, contribution margin $200/client

• a Calculate the break-even number of clients for fishing trips on a per-trip basis. Achieved
• b Calculate the annual profit from fishing trips, based on an average of 15 people per trip, assuming three trips per week over 50 weeks. Achieved
• c Explain how the seasonal nature of fishing may impact on the monthly profit earned by Tauika. Merit
• d Calculate the margin of safety percentages for dive tours over the first three months with three people per tour, and once the average number of people reaches six people per tour. Merit
• e Explain the meaning of each margin of safety for dive tours you calculated in (d). Merit
• f(i) Complete the cash budget for Tauika for the three months ended 31 January 2024. Achieved
• f(ii) Calculate the total receipts, total payments, and cash surplus or deficit for each month. Achieved
• g Make a recommendation to Manu about whether he should go into partnership with Pania and add dive tours to Tauika's fishing trip offering — considering the immediate and long-term impact. Excellence

Every recommendation is genuinely open — the schedules explicitly accept either decision "if suitably justified" — so the marks are in the reasoning and the figures, never in which option you pick.

Past exams & resources

⏱ Timed opens the paper and starts a countdown matching the exam length. Official NZQA PDFs. If a link 404s, that year’s paper may sit under a slightly different code: browse the NZQA subject page.