Question 1: (6 points): Al & CI Management accounting differs from financial accounting in many ways. Indicate with an X in the appropriate column whether each of the following characteristics relates to financial accounting, management accounting, or neither. Financial Management Neither Accounting Accounting Primary Users: Owners, stockholders, lenders, customers, governmental agencies Managers, lenders Managers, employees Report Format and Frequency: In conformance with GAAP whenever needed Flexible, driven by user's needs In conformance with GAAP on a periodic basis Nature and Purpose of Reports: Objective and verifiable, reports on past performance Objective and verifiable for decision making subjective for planning Subjective and verifiable; reports on past performance Units of Measures Dollars at historical, market, or projected values physical measures of time or number of objects Dollars at historical values only Dollars at historical and market values Question 2: (5 points): Al & CI Complete the following chart by placing an "X" under the applicable column headings. Classify each cost as a fixed cost or a variable cost and as either product cost or a period cost. Item Product Costs Period Cost Cost Behavior Fixed Variable Glue used in furniture Cost of workers sanding a product Wages of factory custodian Grapes used in jelly Rent of factory equipment Factory insurance Controller's salary Factory washroom supplies Sugar in candy products Wages of a machinist Office supplies used