• The purpose of Assessment item 1 is to establish the skills needed in the workplace for costing products and services using the appropriate processes and tools and apply analytical processes to construct accounting systems and models using workplace tools. Each question uses realistic data and the professional practices similar to that found in workplaces.
• QUESTION 1 Purpose of management accounting reports
What is the purpose of management accounting reports? Give three examples.
• QUESTION 2 factors that drive management accounting work
Describe the three factors that drive management accounting work.
• QUESTION 3 Cost concepts
Which of the following is incorrect?
• A Direct materials + direct labour = prime cost
B Direct labour + manufacturing overhead = conversion cost
C Prime cost + conversion cost = cost of goods manufactured
D Cost of goods manufactured = direct labour + direct materials + manufacturing overhead
E Only one of the above is incorrect
Explain your answer.
• QUESTION 4 Manufacturing statement and income statement
Spreadsheet. See the Spreadsheet Advice in Interact2 Resources and the examples in your textbook.