Q.1 An organization cannot be profitable if it does not have a clear understanding of the

difference between its fixed and variable costs. Why is this important for management? [3]

Q.2 List some of the changes that can be expected in Management Accounting as a result

of the increase in on-line commercial activity. [3]

Q.3 Why is it necessary to have a pre-determined overhead application

rate in manufacturing? [3]

Q.4 Assume you have just been hired as a management accountant at a manufacturing

plant, list some of the tasks you can be expected to perform [2]