a$)$ Briefly explain, how you understand the following term

i$)$ Costing

ii$)$ Cost object

iii$)$ Sunk Cost

$(2$ marks each$)(6$ marks$)$

b$)$ Outline and explain three objectives and functions of Management accounting $(3$ marks$)$

c$)$ Distinguish between Management Accounting and Financial Accounting

$(6$ marks$)$

d$)$ Identify and explain the element of cost$.$

$(4$ marks$)$

e$)$ Briefly explain, with the aid of a relevant example, each of the following three cost classifications:

i$)$ Variable cost

ii$)$ Fixed cost

iii$)$ Mixed cost $($Semi variable $/$ semi fixed cost$).$

$(2$ marks each$)(6$ marks$)$

$($Total $25$ marks$)$

QUESTION $3$

Monitor Ltd is preparing its overhead budgets for forthcoming period. The company has a three production departments $A,B$ and C $,$ and two service departments X and Y$.$

The following figures have been produced:

$\backslash$table$[[,$A$,$B$,$C$,$X$,$Y$],[$Overhead Cost $($$$),40,000,42,000,45,000,40,000,42,000],[$Machine hours,$15,000,12,000,13,000,,]]$

It has been estimated that service department usage is as follow:

$\backslash$table$[[,$A$,$B$,$C$,$X$,$Y$],[$Department $x,20\%,30\%,10\%,-,40\%$