Answers to questions in this section of the test must be answered briefly.

Q.1 An organization cannot be profitable if it does not have a clear understanding of the

difference between its fixed and variable costs. Why is this important for management?

Q.2 List some of the changes that can be expected in Management Accounting as a result

of the increase in on-line commercial activity. [3]

Q.3 Why is it necessary to have a pre-determined overhead application

rate in manufacturing?

Q.4 Assume you have just been hired as a management accountant at a manufacturing

plant, list some of the tasks you can be expected to perform [2]

Q.5 An organization cannot be profitable if it does not have a clear understanding of the

difference between its fixed and variable costs. Why is this important for management? [4]

Q.6 Explain the Planning and Control Cycle [4]

Q.7 Why is it necessary to have a pre-determined overhead application

rate in manufacturing? [3]

Q.8 Assume you have just been hired as a management accountant at a manufacturing

plant, list some of the tasks you can be expected to perform [2]