QUESTION 1

a. Hazimah, a sole trader has just started his business and is very keen to know about
accounting. She is still confused between financial accounting and management
accounting.

i. Explain the two (2) differences of financial and management accounting.

ii. Explain the importance of management accounting to the business.

b. Pn. Sabariah, Pn. Hafizah and Puan Jalilah are employees in Smart Enterprise.
Below are the details of the salary for the next three years:

Pn. Sabariah Monthly salary is RM8,750

Pn. Hafizah Monthly salary is RM2,850 together with 5% bonus on
the production units produced.
Pn. Jalilah Monthly salary is paid based on unit produced.

i. State the cost behaviour of the salary of each of the employees.

ii. In relation to (i) define cost behaviour of the salary of each of the employees.

QUESTION 2
a. Explain with example each of the terms below:

i. Uncontrollable cost:
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ii. Marketing cost:
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iii. Production cost:
______________________________________________________________
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iv. Controllable cost:
______________________________________________________________
______________________________________________________________
v. Administrative cost:
______________________________________________________________
______________________________________________________________
vi. Variable cost:
______________________________________________________________
______________________________________________________________

b. ‘Over time or over a specific range of activity, some costs tend to be unaffected by the
level of output, whereas others will change as output changes’. Briefly explain, with
examples, each of the following three cost classifications:
 i. Variable cost:
_____________________________________________________________
_____________________________________________________________
ii. Fixed cost:
_____________________________________________________________
_____________________________________________________________
iii. Semi variable cost:
_____________________________________________________________
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QUESTION 3
a. Discuss three (3) similarities and two (2) differences of Management Accounting and
Financial Accounting.

Management Accounting Financial Accounting

Similarities

Differences

b. Explain two (2) differences between Management Accounting and Cost Accounting.

Management Accounting Cost Accounting

 c. Even though the tasks of accounting can be divided into financial accounting,
management accounting and cost accounting, there are similarities between the three
tasks. Assess two (2) similarities that can be found among the three tasks.
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

d. Explain with examples the following terms:

i. Opportunity costs:
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______________________________________________________________
ii. Conversion costs:
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iii. Administrative costs:
______________________________________________________________
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QUESTION 4
Q1: Indicate T (true) or F (false) for the following statements.
a. Price of materials can be controlled by production manager. _______
b. Wages paid to a tailor who directly involves in producing traditional clothes is
classified as direct cost. ______
c. Costs which can be accurately traced to a cost object with little effort is considered
as indirect cost. ______
d. Costs which cannot be accurately attributed to specific cost objects are called direct
costs. _____
e. Giving up another choice when one alternative is chosen can be defined as
opportunity cost. _______
f. A company claim that the lost due to natural disaster as abnormal lost. ______
g. Fixed cost will be affected by the units of output produced. ______
h. Ali is a manager who directly involves in managing a factory that produces sport
shoes. Thus, Ali’s salary can be claimed as direct cost to the company. ______
i. Cost incurred in the general administration including directing and controlling the
operation of an organization is administration cost. ________
j. Salesman’s salary and commission cost of publicity literature and market research is
categorized under marketing cost. _______