Question 1

The chief executive officer of multinational company is faced with a choice of making a trip using the companys aircraft or by a commercial airline. Which of the following costs is relevant for making the decision?

A. The fuel cost using the companys aircraft

B. The initial deposit paid for the acquisition of the companys aircraft

C. The installment costs of the companys aircraft

D. The insurance cost of the companys aircraft

Question 2

Which one of the following best reflects the main difference between management accounting and cost accounting? A. Cost accounting and management accounting are one and the same B. Cost accounting priorities the use of cost data in planning, control and decision-making but management accounting emphasises the assimilation and evaluation of cost data by internal user of financial information C. Cost accounting emphasises the assimilation and evaluation is primarily concerned with using cost data in planning, control and decision-making D. Cost accounting primarily focuses on cost accumulation, cost analysis and cost control as opposed to management accounting which emphasises cost determination and cost management