QUESTION 1 (9 MARKS) (a) Define management accounting. (3 marks) (b) Explain THREE (3) differences between management accounting and financial accounting. (6 marks) (c) Discuss THREE (3) characteristics of management accounting information. QUESTION 2 (20 MARKS) Define cost unit. a) b) c) (2 marks) Explain the following cost behaviour and give an example for each in relation to a printing company: i. Fixed cost ii. iii. Variable cost Mixed cost (6 marks) (6 marks) Lilistreet Art Center commenced its business on 1 May 2022. The company provides hands on artist inspired art lessons to school children. The following is a list of expenses incurred by Lilistreet Art Center for the month of May 2022: Expenses Art instructors' salaries (3 instructors) 1 support staff's salary Art supplies (100% variable) Utilities bills (80% variable) Rental of art studio Newspaper advertising (3 newspapers) RM 2,200 per instructor 1,800 270 per children 900 2,000 500 per newspaper During the month of May 2022, 35 children had registered for the art lessons. Lilistreet Art Center also incurred business license cost of RM960 per year. Required: Identify the total variable costs, total fixed costsand total costs incurred by Lilistreet Art Center for the month of May 2022. (12 marks)

QUESTION 1 (9 MARKS) (a) Define management accounting. (3 marks) (b) Explain THREE (3) differences between management accounting and financial accounting. (6 marks) (c) Discuss THREE (3) characteristics of management accounting information. QUESTION 2 (20 MARKS) (6 marks) a) Define cost unit. ( 2 marks) b) Explain the following cost behaviour and give an example for each in relation to a printing company: i. Fixed cost ii. Variable cost iii. Mixed cost (6 marks) c) Lilistreet Art Center commenced its business on 1 May 2022. The company provides hands on artist inspired art lessons to school children. The following is a list of expenses incurred by Lilistreet Art Center for the month of May 2022: During the month of May 2022, 35 children had registered for the art lessons. Lilistreet Art Center also incurred business license cost of RM960 per year. Required: Identify the total variable costs, total fixed costsand total costs incurred by Lilistreet Art Center for the month of May 2022. (12 marks)