- 3 Marks
MA – Dec 2023 – L2 – Q1c – Divisional performance
This question asks for a comparison between profit centers and investment centers in management accounting.
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Find Related Questions by Tags, levels, etc.
Explain in brief the following terminologies as used in performance evaluation, highlighting their managerial objectives and the performance measurement indexes:
i) Cost centre
ii) Revenue/profit centre
iii) Investment centre
(6 marks)
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a) Management accounting systems obtain information from both internal and external sources. Cost accounting system is one major source of management accounting information, and such information is only useful to managers if it possesses certain qualities.
Required:
In reference to the statement above, explain FIVE (5) qualities of management accounting information.
(10 marks)
b) Explain the following briefly:
i) Cost center (2.5 marks)
ii) Profit center (2.5 marks)
c) Explain TWO (2) differences between a marginal costing system and an absorption costing system.
(5 marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
Explain in brief the following terminologies as used in performance evaluation, highlighting their managerial objectives and the performance measurement indexes:
i) Cost centre
ii) Revenue/profit centre
iii) Investment centre
(6 marks)
Find Related Questions by Tags, levels, etc.
a) Management accounting systems obtain information from both internal and external sources. Cost accounting system is one major source of management accounting information, and such information is only useful to managers if it possesses certain qualities.
Required:
In reference to the statement above, explain FIVE (5) qualities of management accounting information.
(10 marks)
b) Explain the following briefly:
i) Cost center (2.5 marks)
ii) Profit center (2.5 marks)
c) Explain TWO (2) differences between a marginal costing system and an absorption costing system.
(5 marks)
Find Related Questions by Tags, levels, etc.
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