Section 1: Cost Behavior and Classification Question 1: Classify the following costs as variable, fixed, direct, indirect, differential, opportunity, or sunk: a. Packaging Materials b. Utilities for Manufacturing c. Software Development d. Advertising for an Existing Product Line

Section 2: Budgeting Process Question 1: Describe the importance of the master budget in an organization. Question 2 (Numerical): A company expects to sell 1,200 units of its product at $120 each in the next quarter. The production requires $45 per unit in materials and $35 per unit in labor. Do a simple budget statement showing expected revenues, material costs, and labor costs.

Your budget statement should include: a. Expected Revenues b. Total Material Costs c. Total Labor Costs d. Total Production Costs e. Projected Profit

Section 3: Application of Concepts Case Study Analysis: Given the following scenario, analyze the situation and propose solutions based on managerial accounting concepts: ACCT Manufacturing Co. has been experiencing cost overruns in its production department for the past two quarters. The fixed overhead costs have increased due to unexpected maintenance of machinery, and variable costs have risen because of higher raw material prices. Additionally, the company aims to implement a new budgeting system to better forecast and control costs.

Tasks: a. Identify the types of costs contributing to the overruns. b. Analyze how these cost changes affect the overall budgeting process. c. Propose managerial accounting strategies to address and mitigate the cost overruns

Please provide a clear formatting in the solution and reference where neccessary