MATS Lesson 1 - Plenary

From the options below, select THREE statements that relate to management accounting

• Provides estimates for costs and future income

• For external users (e.g. HMRC)

• For internal users (e.g. Line managers)

• Financial statements follow a set format

• Reports assist in decision making, planning and control

An area of the business which costs are charged to and revenue can be identified is known as a:

• Cost centre

• Profit centre

• Business centre

• Garden centre

In a business, costs can often be classified as cost by element.

From the examples below, which one is classification of cost by element

• Labour

• Fixed

• Selling and distribution

• Direct

For a business that manufacturers soup, what would be the direct costs - select all that apply:

• Ingredients to make the soup

• Empty soup tins for packaging

• Premises rent

• Government funding for using recycled materials

A cost has the following information:

At 500 units the total cost is £2,500 and at 1,000 units the total cost is £5,000

From the options below, identify the type of cost behaviour

• Fixed

• Variable

• Semi-variable

Using the image attached, what symbol would need to be used to format specific cells to currency (£)

If you wanted to add a border around the cells, highlight the icon that you would need to click on

Explain the difference between a semi-variable cost and a stepped-fixed cost. Use an example for each to illustrate