AAT Level 2 Costing Chp1

Which ONE of the following is a characteristic of FINANCIAL ACCOUNTING?

• Purpose is to provide info for managers

• Based on future events

• Purpose is to provide info for owners/investors

• Timing/content of reports is decided by managers

Which ONE is a characteristic of MANAGEMENT ACCOUNTING?

• Complies with company law and accounting

• Based on past events

• Provides info for people outside of the business

• Based on future events

Which one of the following is used when classifying costs by NATURE?

• Materials, Labour, Overheads

• Direct, Indirect

• Production, Admin, Selling & distribution, finance

Which one of the following is used when classifying costs by ELEMENT?

• Materials, Labour, Overheads

• Direct, Indirect

• Production, Admin, Selling & distribution, finance

Which one of the following is used when classifying costs by FUNCTION?

• Materials, Labour, Overheads

• Direct, Indirect

• Production, Admin, Selling & distribution, finance

What is a costing systems overall purpose?

• To calculate employee wages and salaries

• To design marketing campaigns and advertisement

• To help with decision making, planning and control

• To manage customer complaints and feedback

Who are the main users of Management accounting information?

• Government agencies

• Company managers and owners

• External auditors

• Shareholders only

Which of the following is a key feature of Financial Accounting?

• It focuses on future planning

• It is prepared for internal use

• It's mainly used for decision-making

• It follows legal and accounting standards

What would wood to make sheds be classified as?

• Materials

• Labour

• Overheads

• Fixed costs

What would factory Insurance be classified as?

• Materials

• Labour

• Overheads

• Fixed costs