Question $1$

$($Total $25$ marks$)$

Information produced by a management accounting system should be useful to management; if not, it has no value.

Required:

$($a$)$ State five factors that must be considered to ensure that any information produced by a management accounting system has a value to management.

$(5$ marks$)$

$($b$)($i$)$ List two limitations of financial accounts.

$($ii$)$ State two reasons why a company should use a system of management accounts.

$(4$ marks$)$

$($c$)$ State three factors that should be borne in mind when setting up a management accounting system.

$(3$ marks$)$

$($d$)($i$)$ Define the term 'Cost Centre'.

$(2$ marks$)$

$($ii$)$ Give two examples of cost centre's.

$(2$ marks$)$

$($e$)$ Define the term semi$-$fixed$/$semi$-$variable cost and state two ways in which the fixed and variable elements of such a cost may be separated.

$(4$ marks$)$