QUESTION 1

1. What is the difference between financial accounting and managerial accounting?

QUESTION 2

1. Explain the two reasons why the shorter the payback period the more attractive the investment is when the payback technique is used?

QUESTION 3

1. Distinguish between a master budget and a sales forecast.

QUESTION 4

1. Explain the nature and importance of a job cost sheet

QUESTION 5

1. Distinguish among operating, investing, and financing activities.

QUESTION 6

1. Managers’ activities and responsibilities can be classified into three broad functions. List and discuss each function.

QUESTION 7

1. Identify and discuss the relevant costs in accepting an order at a special price.

QUESTION 8

1. Smith & Company claims that the relevant range concept is only important for variable costs. Explain the relevant range concept and discuss whether you agree with Smith & Company.

QUESTION 9

1. What is a CVP analysis and how is it used in managerial accounting?

QUESTION 10

1. What is the difference between: unit-level, batch-level, product-level, and facility-level activities?