Question: Question 1. Critically explain five differences between financial and management accounting. (15marks)TOTAL.MARKS=15 Question 2. The Luxury Gift Company produces three distinct products. its managers are

(15marks)TOTAL.MARKS=15 Question 2. The Luxury Gift Company produces three distinct products. its

Question 1. Critically explain five differences between financial and management accounting. (15marks)TOTAL.MARKS=15 Question 2. The Luxury Gift Company produces three distinct products. its managers are concerned that the company's profit is not as high as its competitors. They believe they fall in profits could be caused due to the company's uncompetitive seline priceis), for one or more product, and losses on other products. Details of the company's costs and setling prices are as follows: Currently the company uses the traditional method of allocating indirect overheads but is considering using the ABC method for increasing the accuracy. The company's indirect overheads are as follows: - Activities associated with the oushearle are: Required a. Calculate the profit per unit for the three products based on the company's current Labour hours based overhead method. (5 Marks) b. Calculate the profit per unit for the three products using the principles of ABC. Explain your reasons for choosing the bases of overhead allocation. (15 Marks) TOTAL MARKS =20

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