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SECTION B Answer Both Questions in this section. Note: question 7 has a choice of a or b. 6 Choose TWO of the terms/techniques listed below and for each one: Explain the meaning of the term/technique. i) ii) Drawing on your experience of management accounting, give two examples of its application, iii) Explain some of the practical limitations of which users should be aware with regard to the term/technique. a) Marginal Cost b) c) Direct Material Mix Variance Internal Rate of Return Margin of Safety d) Note: Only two answers are required, if more answers are provided, only the first two will be marked. If more are provided you should cross out the ones you do not wish to be considered. Examiners value the use of your own words. The word limit for each answer is 300 words. 5 marks per answer (total 10 marks) 7a) Describe the contexts in which Activity Based Costing may be most useful. How can Activity Based Costing help in service industries? Give three examples of such service industries and explain how ABC helps with decision making. Examiners value the use of your own words. The word limit for your answer is 800 words. (15 marks) OR 7b) Discuss the reasons for the rise in Environmental Management Accounting. Give three examples of issues which might be included in an Environmental Report and explain how the information for these issues would be obtained. Examiners value the use of your own words. The word limit for your answer is 800 words. (15 marks)