Question 1

1. Differentiate between the concept of cost accumulation and accumulated costs. [4 marks]
2. Differentiate between the cost behaviour of fixed versus variable costs.[4 marks]

Question 2

Explain why it is important for a cost accountant to identify properly the cost drivers for the purpose of cost estimation.[8 marks]

Question 3

Explain the various categories of environmental costs.[8 marks]

Question 4

Explain why businesses are encouraged to adopt Activity Based Budgeting. [8 marks]

Question 5

Explain why many companies use absorption costing for their internal reporting. [8 marks]