MAC2602/102/3/2016

Tutorial letter 102/3/2016

Principles of strategy, risk & financial
management techniques

MAC2602
Both semester 1 and 2
Department of Management Accounting

IMPORTANT INFORMATION:
This tutorial letter contains important information
about your module.

MAC2602/102
TUTORIAL LETTER 102/2016 FOR MAC2602
Dear Student
We trust that your studies are progressing satisfactorily.
We have deemed it necessary to provide you with additional information as regards the following:(a)
(b)
(c)
(d)
(a)

Your studies for 2016.

Errata to MO001 Appendix B and MO002 Appendix C.
Guidelines on how to complete and submit written assignments online by means of myUnisa.
May and November 2016 examination preparation and approach.
YOUR STUDIES FOR 2016
1.

Prescribed book(s) for 2016

In MO001, Appendix A, page 7, paragraph 4.1 you will have taken note that there are no
prescribed books for MAC2602.

2.

Suggested study programme for 2016

In MO001, Appendix A, on page 10, a suggested study programme was supplied to help
you to work through the whole syllabus in time and also have time for revision before the
examination. We strongly urge you to make use of this programme. Ensure that you log
onto your myUnisa account and read the Announcements at least once a week as
important information will be communicated via the announcements.

3.

Schedule study time

To succeed at open distance learning (ODL) it is important that you study every day.
Semester modules require between 6 and 8 hours per week, and year modules 4 to 6
hours per week.
Spend about 2 hours scanning each of MO001, Appendix B and MO002, Appendix C:

Calculate the number of weeks left till the exam.

Deduct 2 weeks from that time for final exam preparation.
Divide the work in each Appendix into chunks of material.
Schedule these chunks into the number of weeks, giving more time to more difficult
work.
Include two hours at the end of each week to evaluate your progress.

Once again, this is not an exact reference. It is meant to give you an idea of how much
studying you will need for each of your modules. Scheduling in this way also makes your
plan more specific. As specific as any plan gets, it is still just a plan. Do not worry if things
do not work exactly as planned. Adjustment is part of the process.
4.

Keeping of MAC2602 MO001, MO002 and study material for further studies
The principles that are dealt with in this module will not be explained again in subsequent
modules!!! In subsequent modules it is assumed that you completely mastered the
learning outcomes of prior modules that you passed. After you have passed this module,
you should therefore not get rid of your MO001, MO002 and other study material (like
tutorial letters) as you may want to refer back to these.
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MAC2602/102

(b)

ERRATA TO MO001 APPENDIX B AND MO002 APPENDIX C

Please take note of the following errata to MO001 Appendix B and MO002 Appendix C. Please
make the changes immediately that you know it has been done when you get to that part of your
studies.
Also refer to MO001 Appendix A, p. 45 48 for additional errata to MO002 Appendix C,
regarding possible unreadable printing of shaded parts in the tables.
MO001 Appendix B Additional errata
p. 118
Feedback to Activity 9.1 part b (i). The answer to the mathematical formula is currently R7 403.
This amount should be R7408.
MO002 Appendix C Additional errata
p. 22
Figure 16.1, the first column Profitability and performance, fourth bullet should read:
Return on equity and not return of equity.
p. 25
At the top of the page, the calculation for ROE for year 20x2 should have 2,646 below the line
and not 1,646.
ROE

127

x 100

2 646

p. 27
At the middle of the page, calculations and should read:
(8 803 + 7 902) 8 353
(7 902 + 7 530) 7 716
p. 40
The earnings per share calculation in the middle of the page has a line underneath the 1 000 for
both year 20x2 and 20x1. These lines should not be there.
20x2
=

R127
1 000

= R0,127

20x1
=

R376
1 000

= R0,376

p.96
Under part (a) net movement at year 3, the annual net cash movement is currently given as R5
000. It should be R7 000.
[Explanation: The movement is 56 000 (year 2) minus 49 000 (year 3) = 7 000 inflow]
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MAC2602/102
p. 113
The average book value is currently showing as R50 000. It should be R55 000.
[Explanation: Use the book value that is given in Activity 20.1 as R110 000 2 = average book
value = R55 000.]

(c)

GUIDELINES ON HOW TO COMPLETE AND SUBMIT WRITTEN ASSIGNMENTS ONLINE

BY MEANS OF MYUNISA
Refer to MO001, Annexure A p. 15 18.

(d)

MAY AND NOVEMBER 2016 EXAMINATION - PREPARATION AND APPROACH

The following matters regarding the May and November 2016 examination deserve your
attention:

Difficulty of this module:

We want to bring to your attention that MAC2602 is a NQF (National Qualifications Framework) level
6, meaning that this module is two levels higher than a matriculation qualification and therefore it
cannot be an easy module!! It is required of students to apply some prior knowledge (gained in the
modules which are prerequisite for admission to this module) and insight which is in line with the
requirements of a NQF level 6 qualification. This module does comply with these requirements and is
more difficult than is expected by most students.
Also remember that you are studying towards obtaining a degree and not a diploma or a short course
qualification.
We want to refer you back to the "my Studies @ Unisa" booklet. It states there that a student should
spend at least 4 - 6 hours per week per module. If you don't have this time available due to the fact
that you are studying part time and working full time you should manage the number of modules you
enroll for.
1.

ADMISSION TO THE EXAMINATION

Registered students who submitted the first compulsory assignment, 01/2016, before or on the due
date and who have paid their study fees for the semester are admitted to the May or November 2016
examination. You should receive a final timetable by approximately the end of April (first semester)
and September 2016 (second semester). Take note that not only is the submission of this assignment
important for examination admission but this assignment will also provide you with a year mark, and
that together with (compulsory) assignment 02 will provide you with a total year mark (as set out in
paragraph 8 (p. 13) in MO001, Appendix A), which will contribute up to a maximum of 20% towards
your final examination mark. A subminimum of 40% in the examination is however required, before the
year mark will be taken into account towards your final mark.
2.

RELATIVE IMPORTANCE OF CERTAIN TOPICS IN THE STUDY MATERIAL

There are no topics in the tutorial matter that are more important than others and no discussion will
be conducted in this regard. You need not even refer to other modules, for example Auditing which,
due to the nature of the module, can supply some sort of work demarcation.

MAC2602/102
Any one of the topics in the syllabus could be examined as a long or a short or multiple choice
questions. Do not get stuck on the format, sequence, mark allocation or type of questions in previous
examination papers and expect that the paper MUST be similar. The format, sequence of questions,
mark allocation and type of questions are the prerogative of the examiners.
You will be examined on the study material as contained in the tutorial letters and MO001 and MO002.
Please note that all the principles covered in the study material cannot be tested in the two
assignments per semester only. The examination paper can therefore examine principles which
could not be covered in the assignments or previous examination papers.
You will realise that by making use of a combination of multiple choice and long questions with subsections, we are able to examine a broader content of the syllabus. This accentuates the fact that it is
not advisable to leave out any topics or study units in the study material (syllabus).
2.1 The relative importance of MO001, Appendix B and MO002, Appendix C:
Please note that MO001, Appendix B and MO002, Appendix C do NOT divide the study material into
two separate parts that should be covered equally in the examination paper. The study material is only
divided into two appendixes due to practical reasons. It is not possible for the University to print, bind
and distribute the content as one thick bundle (such as a textbook) of almost 500 pages.
As one progresses normally through any study material, underlying important concepts and
techniques are firstly introduced and explained in order to build on this essential knowledge in later
study units. It is very important that you understand the theoretical underpinning of concepts,
principles and techniques as well as to recognise the integration with other topics which require your
understanding of basic techniques, principles and concepts. It will therefore important to study all the
material. Without the underpinning concepts, principles and techniques you will not be able to master
further applications of the principles and techniques.
The study material also regularly refers you back to earlier topics which you should have understood
and mastered. Examples are time value of money and sources and forms of financing as these relate
to capital investment and working capital management later in the study material.

3.

CHOICE OF CORRECT PAPER: MAC2602

It is your responsibility to ensure that you receive the correct question paper in the examination
(MAC2602). If you are handed the wrong question paper, you must immediately request the invigilator
to hand you the correct question paper.
4.

EXAMINATION TECHNIQUE

The following general TECHNIQUE PROBLEMS have been identified by the lecturers during the
marking of examination scripts:
4.1

A significant percentage of students do not answer what the question requires First read through the "required" section of each question before you read through the contents
of the question. When you start answering the question, ensure that you are answering what is
required and not what you think is required. Structuring your answer into subsections with
appropriate headings helps a great deal in avoiding this mistake.

4.2

Students are inclined to deviate from the suggested time-allocation per question If you are unable to complete a question within the suggested time, stop, and carry on
with a next question. It has been proved that you will earn more marks by starting on a
next question, rather than by continuing with the question of which the time has expired.
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4.3 Subsections of answers are not always clearly identified Structure the layout of your answer to group all subsections of one question together. Avoid
including a subsection of a question at the end of your paper, and if you have no choice, refer to
the subsection in the main body of your answer as well as the page number pf your examination
script where you completed the question.
4.4

Many marks are lost due to problems involving calculations that are not shown Bear in mind that sufficient formulas, equations and calculations must be included in the
presentation of your answer to enable the markers to follow your logic and to award marks
accordingly. If you have made a calculation error and no calculations are shown, the marker has
no basis to work on to award marks for the principle you have applied. It is therefore worthwhile
to spend a few minutes to set out what you are doing.
The calculations are to be included in the specific answer to a question and not at the back of
your examination answer book or with other unrelated questions. They must be properly crossreferenced to your solution.

4.5

Each question is not started on a separate page The examination instructions are very specific in this regard, and should be adhered to.

4.6

Illegible handwriting This complicates the marking process and as a result, marks may be lost.

4.7

It is obvious from answers in the examination that many students have not prepared the
study material sufficiently in order to do the self-assessment activities at the end of each
topic or to meet the required outcomes We cannot over emphasise the importance of doing all activities and self-assessment questions
throughout the MO001, Appendix B and MO002, Appendix C. Furthermore the assignments
should be seen as simulated examinations and must be written without reference to the MOs
and in the time allowed (1,2 minutes per mark). Do not attempt an assignment unless your level
of preparation on the sections of the work that is covered is up to examination standard. Only
then, by completing the assignment within the specified time, will it be of benefit to you.

4.8

Attempted answers often contain information irrelevant to the answering of the question Part of the test of a question is for you to sift the relevant and irrelevant information. Bear in mind
that should you include irrelevant information that should not in principle be included in the
answer to the question, you will be penalised. For example, income, costs, cash flows and
balance sheet items are given to you and you are required to compile a cash flow budget. Where
non cash flow items or sunk costs are included in the cash flow budget, you will be penalised for
not knowing the principle that these items are not included in the cash flow budget.

4.9

The answer has been crossed out and then the student does not have time to write down a
replacement answer Where you think you have made a mistake, do not cross out the whole answer to a question
before you have done a replacement answer. In a case like this, there is nothing to mark
therefore no marks can be awarded.
Please DO NOT waste time on first completing the question in rough calculations or in pencil
only to re-write the exact same calculation in pen. This is wasting a lot of valuable time.

5.

FORMAT OF THE EXAMINATION PAPER

The duration of the May and November 2016 examination paper is 2 hours and it consists of five
questions, counting a total of 100 marks. There are multiple choice questions as well as long
questions with subsections. Time value of money tables will be supplied.
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MAC2602/102
NO list of formulas or equations will be supplied. You must know all formulas and equations and write
them down when you use it when answering a question because marks may be awarded for both the
formula and the calculations.
Answers to multiple choice questions will be marked as being either correct or incorrect, we have
attempted to structure the questions in such a manner that students will not get penalised for incorrect
answers any more than they would have if the questions were asked as part of a normal (long)
question. Please note that these questions will not be marked negatively.
Should you be required to answer a question consisting of multiple choice questions, please ensure
that you meticulously follow the instructions, which will be given at the outset of the question.
We would like to provide you with the following guidelines when answering three different types of
multiple choice questions (1 - 3) which may be put to you:
1.
2.
3.

a calculation that has to be made, or

a selection of statements that are true that has to be made, or
a selection of statements that are false that has to be made.

You may expect questions of every type in the examination.

The first type of question is the easiest to deal with, provided that you have the knowledge to execute
the necessary calculations. Note that calculations have to be set-out legibly in the examination answer
book. These calculations will not be marked.
The second and third types of questions are more difficult to deal with. It would be advisable to
consider each statement separately and indicate on the question itself whether it is true or false
(depending on what is required). These statements can involve either calculations, or theory, or both.
Be careful not to indicate the combination of statements that are true when the question requires you
to indicate those that are false.

6.

FREQUENTLY ASKED QUESTIONS WITH REGARD TO THE EXAMINATION

Are there any discussion classes for MAC2602?

Unfortunately no discussion classes are available for MAC2602 as per a decision taken by UNISA.
Can appointments be made with lecturers over a weekend?
Appointments can be made with lecturers from Monday to Friday.
Will there be any videoconferences for MAC2602?
There will be no video conferences for MAC2602.
Which textbook should I use for MAC2602?
There is no text book prescribed for this module. Your MO001 and MO002 and the tutorial letters are
the only study material for MAC2602.
Am I going to receive a formula sheet in the exam?
No formula sheet will be provided in the exam. All formulas should be memorised. Refer to MO001,
appendix B, p. 106 in this regard.
Can I use my financial calculator in the exam and do the calculations for all questions using
the short method (financial calculator)?
In the exam marks are given for the mathematical formula and the substitution of the correct figures
into the formula in the case where the question asks you to use the mathematical formula. In the case
where the question requires you to use the factor tables, marks will be awarded for the factors
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MAC2602/102
according to the tables. Only a final answer without showing the formula, equation or factor used from
the tables, if so required, will receive no marks.
If you use the financial calculator where the questions ask for a specific method of calculation, you will
not receive any marks for the answer even if it is the correct final answer. You can use the financial
calculator, if you wish, to test/check your final answer and only in multiple choice questions if a specific
method is not required. (Although no calculations and formulas are marked in multiple choice
questions the method used will determine the alternative presented as the correct answer since
rounding differences occur between the different methods.)
How would I know which percentages to use in calculations for interpolation and
extrapolation?
When you are asked to use interpolation or extrapolation to calculate a specific rate, the two
percentages which you should use will be supplied. You will not be required to guess these.
Will the exam be multiple choice questions only?
One question in the exam will be multiple choice questions. The other questions will be long questions
with sub-sections.
Which topics are the most important to study for the exam?
All the topics in both MOs are important. The whole syllabus will be tested, either in long questions
with sub-sections or in the multiple choice question. It is very important that you are able to meet all
the outcomes of each topic as supplied at the beginning of each topic. The self-assessment questions
are examples of questions testing whether you can achieve the outcomes of each topic.
Will I get extension for an assignment if I could not submit the assignment on the due date, due
to illness, if I present a medical certificate?
Unfortunately no extension can be given for assignments as they are already processed for marking
after the due dates and the solutions will be available on myUnisa and hard copies dispatched to
students directly after the set due dates.
Are there any related textbooks that I can use in studying MAC2602?
You do not need any text book for this module as the text books are too advanced (meant for third
year level modules) and presume that you already have a basic knowledge of the topics that are dealt
with. You need to know the content of the two MOs and the assignments and solutions thereto in
order to pass this module. The outcomes that you must achieve given at the beginning of each topic
are a good indication of the important aspects in each topic. You will be assessed on whether you
achieve these outcomes.
At the end of each part there is a list of references to literature which covers the topics. You are
welcome to use some of the textbooks that are referred to therein.
Are there any previous exam papers available to be used as an example of the format of the
paper or for additional exercise?
MAC2602 is a module that was only recently introduced. May and October 2013, 2014 and 2015
examination papers can be found on myUnisa. TAKE NOTE: NO PREVIOUS QUESTION PAPER
WILL BE REPEATED OR QUESTIONS FROM A PREVIOUS PAPER IDENTICALLY REPEATED IN
ANOTHER PAPER.
Can I use other formulas from the ones given in the study material that I found in other text
books?
There are many different formulas available in different text books for the same calculations. The
formulas provided in the MOs are the ones that were found to be the easiest for students to
understand. We cannot provide all the different formulas in different text books in the study material. In
the exam marks are given for the formula, and due to the fact that specific formulas were given and
explained in the study material these will be the formulas for which marks will be awarded.
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MAC2602/102
7.

PERSEVERE!

We would like to encourage you to approach this last part of your studies with enthusiasm.
Remember, success can only be achieved by effort and perseverance.
We find that many students do not turn up at the examination centre. You must never inflict this disservice on yourself. Remember that if you write, you have a chance; if you do not, you have no
chance. By being prepared to apply yourself for two hours, you could prevent repeating a whole
semesters study.
We accept that you are aware of the fact that the required pass mark for this module is 50%.
Best of luck with your studies.
With kind regards
Your lecturers: MAC2602
Telephone
number

Room number in
Samuel Pauw
building

E-mail

Ms N Smit

012 429 4179

4-46

MAC2602-16-S1@unisa.ac.za (1st semester)

Mrs M Ltter

012 429-4321

4-47

MAC2602-16-S2@unisa.ac.za (2nd semester)

College of Accounting Studies (CAS) Student Information Hub (Tel no: 012 429 4211)
The e-mail addresses are:
-

CASenquiries-Postgraduate@unisa.ac.za
CASenquiries-Undergraduate@unisa.ac.za
CASenquiries-CTA@unisa.ac.za

Unisa 2016
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