2025/2026 U1 S2 FUNDAMENTALS OF COST ACCOUNTING AND ENVIRONMENTAL MANAGEMENT ACCOUNTING

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2025/2026 U1, S2: FUNDAMENTALS OF COST ACCOUNTING AND ENVIRONMENTAL MANAGEMENT ACCOUNTING ACTUAL Q&A 100% PASS What is the primary role of management accounting in organizations? - Answer -To provide managers with information about the cost of making products or providing services. Why do managers need product cost information? - Answer -For establishing selling prices, determining profitability, managing costs, and valuing inventory for financial accounting. How are costs defined in a business context? - Answer -Expenses incurred to purchase goods, produce products, provide services, pay staff, or perform repairs. What are external costs or externalities? - Answer -Costs that cannot be measured monetarily, referring to the impact a company has on parties outside the organization. Can you give an example of an externality? - Answer -The displacement of a local community due to the construction of a manufacturing unit. What is the significance of knowing the cost of a product for a business? - Answer -It ensures that the price covers all expenses and helps in making informed business decisions. What are the principal classifications of costs? - Answer -Variable and fixed costs, direct and indirect costs. Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com What is the difference between variable costs and fixed costs? - Answer -Variable costs change with the level of activity, while fixed costs remain constant regardless of activity level. What is marginal costing? - Answer -A costing approach where variable costs are charged to product units and fixed costs are treated as period expenses. What is absorption costing? - Answer -A costing approach that charges both direct and indirect costs, including fixed and variable costs, to units of output. What is the relationship between variable costs and output? - Answer -Variable costs are directly proportional to the level of activity or output. What happens to total variable costs if production activity doubles? - Answer -Total variable costs also double. What are some examples of variable costs in a car factory? - Answer -Raw materials, labor costs, and direct production expenses like engines and tires. What are indirect costs that can also be variable? - Answer -Electric power to drive machinery and consumable materials like lubricants. What is the relevance of classifying costs into actual and standard costs? - Answer -It helps in budgeting and performance evaluation. What is the distinction between controllable and non-controllable costs? - Answer -Controllable costs can be influenced by management decisions, while non-controllable costs cannot. What is the purpose of classifying costs in management accounting? - Answer -To provide insights for decision-making, cost control, and financial reporting. Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com