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Essay 1. What is distinguish between variable cost and fixed cost?

Variable costs are costs that vary in total directly and proportionately with changes in the activity index. Fixed costs are costs that remain the same in total regardless of changes in the activity index . 2. Could you describe about the purpose of financial accounting? The purpose of financial accounting is to provide accurate financial information for the company accounts, which will be used by both senior management and external parties. They are used to external reporting There is a legal requirement for limited companies to prepare them and presentation is dictated by accounting standards They are concerned with data past only They usually include only financial information They detail the results of an organization over a defined period 3. What is the routine in external information? 4. In many organization administrations administrative function are carried out at head office as much as is possible. And the administration function is said to be centralized. What the advantages and disadvantages of centralized administration! 5. Draw the working both and on line processing methods in diagram 6. What is the purpose of management information? And give the explanation! 7. Explain the concept of mixed cost! Mixed costs increase in total but not proportionately with changes in the activity level. For purpose of CVP analysis, mixed costs must be classified into their fixed and variable elements. One method that management may use is the high low method 8. Explain the difference between absorption costing and variable costing! Under absorption costing, fixed manufacturing cost are product cost, under variable costing, fixed manufacturing costs are period costs.