[1] E [2] Management accounting and financial accounting differ in that management accounting information is prepared: a) Following prescribed rules b) Using whatever methods the company finds beneficial c) For shareholders d) To summarise the whole company with little detail Management accounting: a) Always has an external orientation b) Always has an internal orientation 1 Mark c) Information assists in planning and controlling d) Terms serve as a model of the organisation 1 Mark [3] A debit to Materials (Stores ledger account) indicates: a) Materials were purchased b) Materials were requisitioned c) Materials were put into production d) Materials were ordered 1 Mark [4] Caravaggio Ltd adopts an activity-based costing system. The company produces two models of bags: Trendy and Casual. Information relating to the two bags is as follows: Trendy Casual Units produced 24,000 30,000 Machine hours 7,500 8,500 Direct-labour hours 8,000 12,000 Material handling 4,000 6,000 (number of moves) Setups 5,000 7,000 The following costs are reported: Material handling 40,000 Labour-related overhead 120,000 Setups 60,000 What are the setup costs assigned to Casual? a) 36,000 b) 35,000 c) 28,000 d) 25,000 3 Marks