Exhibit 14-2 lists four criteria used to guide cost allocation decisions:
Cause and effect.
Fairness or equity.
Ability to bear.
The cause-and-effect criterion and the benefits-received criterion are the dominant
17-1 The main difference is the extent of averaging, used to compute unit costs of products or
17-2 Process costing systems separate costs into cost categories according to the timing of when
costs are introduced into the process. Often,
Strategic cost management describes cost management that specifically
focuses on strategic issues. Management accountants help formulate strategy by helping
managers answer questions such as:
Who are our most important customers, and how do we
Summary chapter 1
Accounting systems take economic events and transactions and processes the
data into information helpful to managers. Provide information for five broad
purposes: formulating over all strategies and long term plans, Resource
AN INTRODUCTION TO COST TERMS AND PURPOSES
A cost object is anything for which a separate measurement of costs is desired. Examples
include a product, a service, a project, a customer, a brand category, an activity, and a
THE MANAGER AND MANAGEMENT ACCOUNTING
Management accountants can help to formulate strategy by providing information about
the sources of competitive advantagefor example, the cost, productivity, or efficiency
advantage of their company re
Actual costing and normal costing differ in their use of actual or budgeted indirect cost rates:
Each costing method uses t
Examination code :
During the Exam the following Lecturers can be contacted;
Name: Telephone number: Aids and appliances:
Calculator (a calculator with a QUERTY display or
Essay questions for MAC2.
Please write a professional looking concise 2-3 page report about 2 of the following essay
questions. It should be in your own wording and all sources used should be clearly stated.
It must be comprehensive, in excellent English