1. ‘’Accounting is concerned with providing both financial and non-financial information that will help decision-makers to make good decisions’’.

1. Define management accounting and its functions.
2. Explain how management accounting differs from financial accounting. 

2. Qualitative or non-financial factors are crucial in the process of decision making. Select an organization of your choice and identify any 5 qualitative factors that should be considered by the management while taking business decisions. 
3. Starlight Company started the business on 1 April 2020 to produce a herbal sanitizer specially for the use of kids and infants. Following information are available for the year 2020-21.

Units produced 1500

Units sold 1300

Each unit of sanitizer is sold for P125

Cost of material required per unit of sanitizer P25

Cost of labour required per unit of sanitizer P30

Total production overheads (all fixed) P82,500

Required:

1. You are asked to produce profit/loss statement using the marginal and absorption costing methods. Starlight management needs it to produce to the bank for the purpose of a loan. The manager told to submit “the one with the highest profit’’ to the bank.
2. Convince the manager the reasons for different figures of profit. 

Answer rating: 100% (QA)

The term accounting refers to the systematic and stepbystep approach of recording business transacti... View the full answer