(1). "Management Accounting can be used as a decision-making tool in the business organization". Do you agree with this statement? Justify your answer.

(2) Give an example for each of the following cost classifications by focusing on a tea industry.

a. Direct cost

b. Indirect cost

c. Period cost

d. Fixed cost e. Variable cost

(3) Standard labour cost of Product 'Y' has been mentioned below.

4 hours of grade II labour at Rs. 600 per hour =Rs.2 400 per unit.

During the month of June, 500 units of product Y were produced and the total direct labour cost of grade II labour was Rs. 1 312 500 for 1 875 hours of work.

Required to calculate:

a. Direct Labor Rate Variance

b. Direct Labor Efficiency Variance

c. Total Direct Labour Variance