Briefly explain each of the terms in bold italics.

i. ii. b) Omega Sdn. Bhd. has the following information on cost and current production available: Materials per unit Labor per unit Direct expenses per unit Administration expense Selling and distribution expenses Depreciation Insurance RM 100 60 20 DBA2120 OCT22-JAN23 80,000 100,000 10,000 5,000 Additional information: i. 50% of administrative expenses are fixed and the remaining are variable costs ii. 60% of selling and distribution expenses are fixed and the remaining are variable costs iii. Current production makes up 50% of the whole activities are 1,000 units Draw up a flexible budget for production at 75% and 100% capacity on the basis of the data for the 50% activity mentioned above. [9 marks] The typical budgetary control system does not encourage goal congruence, containsbudgetary slack, ignores the aspiration levels of participants and attempts to control operations by feedback when feedforward is likely to be more effective; in summary, the typical budgetary control system is expected to have dysfunctional effects. [6 marks]