Page 297 - BA2 Integrated Workbook STUDENT 2018
P. 297
Answers to supplementary objective test
questions
CHAPTER 1 – THE CONTEXT OF MANAGEMENT ACCOUNTING
1.1 D
Information for strategic management tends to be summarised and forward
looking while information for operational management tends to be accurate and
provided frequently.
1.2 The complete sentences are:
Management accounting can be presented in any format required by
management.
Financial accounting mainly deals with historical financial information.
The main purpose of financial accounting is to produce statutory financial
statements.
1.3 E
The principle of confidentiality states that you should not disclose professional
information unless you have specific permission, or a legal or professional duty
to do so.
CHAPTER 2 – COST IDENTIFICATION AND CLASSIFICATION
2.1 C and E
Alternatives A, B and D would all be classed as direct labour.
A store assistant and a cook in the factory canteen are examples of indirect
labour as they are not working directly on producing the organisation’s output.
2.2 The correct sentences are:
Prime cost is the total of direct costs.
Variable costs are conventionally deemed to be constant per unit of activity.
Fixed costs vary per unit of activity where activity levels change.
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