QUESTION 3

A. Budget variances is the differences between budgeted and the actual amounts. Discuss by giving examples what causes this variance and explain the meaning of "management by exemption". (10 marks)

B. Explain the limitation for the management who used the budgetary control as performance evaluation and measurement. (10 marks)

QUESTION 4

A. The management used cost and efficiency standards to control the business activity. Explain the differences between cost variance and efficiency variance by giving examples in product cost. (10 marks)

B. Explain the benefit of having a standard cost system. (10 marks)

QUESTION 5

Managers usually follow a decision model for choosing among different courses of action. Management accountants analyze and present relevant data to guide managers' decisions. Discuss the five-step decision-making process by giving example where appropriate. (15 marks)