1. Activity Based Costing

Does activity-based costing promise greater accuracy in a diverse product environment? Is it appropriate for every industry and every type of organisation? Explain your answer.

(8 marks)

2. Activity Based Costing (ABC)

Does increasing the number of cost pools always increase the accuracy of allocations under an ABC system?

Explain your answer. (5 marks)

3. Budgets

Explain the relationship between budgeting and controlling.

(6 marks)

4. Budgets

Compare the two main types (groups) of budgets that make up the Master Budget and explain the interrelationship

between the two groups.

(6 marks)