Question 1

1. Differentiate between internal and external users of accounting information

(4 marks)

(b) State any THREE (3) examples of internal users and THREE (3) external users of the accounting information.

(6 marks)

(c) State the following items as Direct or Indirect cost and Fixed or Variable cost with respect to

the Production Department. Please provide your answer in both columns for each cost item.

Cost Item	Direct cost	Indirect cost	Fixed or Variable
Salary of the production department manager who oversees manufacturing in VolVot Car Factory
Wages paid to assembly line workers who mix water ingredients in Soda Pop Factory
Utilities (water, electricity, waste) for the entire warehouse in steel producing ompany
Cost of flour, eggs, and baking powder for baking bread in Abu Bread Shop

(8 marks)

[18 marks]