[4] Product costing provides useful decision-making information in relation to all of the following alternatives, but one. Which one? a) Non-manufacturing firms b) Management planning, cost control, and performance evaluation c) Financial reporting d Developing awareness about the company environmental impacts 1 Mark [5] The main distinction between job costing and process costing is: a) The difference in the level of detail required by each system b) The use made of the costing information c) An accounting difference d) The cost object on which costs are accumulated 1 Mark [6] In its first month of operations, Margherita Ltd produced 100,000 units. 90,000 units were sold. The manufacturing cost per unit was as follows: Direct materials cost 40 Direct labour cost 20 Variable fixed overhead cost 30 Fixed overhead cost 50 Total per unit cost 140 Margherita Ltd's operating income under absorption costing is: a) Lower than variable costing by 500,000 b) Higher than variable costing by 600,000 c) Higher than variable costing by 500,000 d) The same as under variable costing 3 Marks From the industries listed below, which one is most likely to use process costing to account for production costs? a) Printing shop b) Accounting firm c) Electrical contractor d) Steel mill 1 Mark [7]