Question 1: Define Management Accounting and the components of the Manufacturing Statement.

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Question 2: Explain how Management Accounting uses budget information when setting the Factory Overhead Recovery Rate.

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Question 3(a): Complete the following table by indicating with a against each cost to identify the cost as a Period Cost or a Manufacturing (product) cost and for each manufacturing cost indicate with a to identify the cost as:

i.Either a Fixed cost or a Variable Cost and

ii.Whether the cost is a Direct or Indirect Cost.

Note: to insert a copy then paste the in the appropriate box in the table.

Cost

Period cost

Manufacturing (product) cost

Fixed

Variable

Direct

Indirect

1.Production line workers' wages

2.Factory supervisor's wage

3.Raw Materials used in production

4.Delivery costs on raw materials

5.Factory cleaning costs

6.Advertising costs

7.Depreciation on factory assets

8.Factory rent

Question 3(b): Justify your classifications of Delivery costs on raw materials and Advertising.

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