18 Questions
What is the primary purpose of identifying costs in a Micro-Mac burger production?
To assign costs to a cost object for decision making
Which of the following costs is classified as a direct cost?
Special sauce
What is the primary purpose of classifying costs?
To assign costs to a cost object for decision making
What is the cost of the special sauce classified as?
Direct cost
What is the purpose of identifying the costs of producing a Micro-Mac burger?
To inform decision-making in management accounting
What is the salary of the Micro-Mac burger Chef classified as?
Direct cost
What is the primary purpose of management accounting?
To help in internal decision making
What is the output of management accounting?
Management reports
What is the main role of cost information in management accounting?
To make decisions and control costs
What is the primary objective of cost accounting?
To measure the cost of production
What is the relationship between management accounting and decision making?
Management accounting helps in internal decision making
What is the role of cost information in decision making?
To make decisions
What is the primary purpose of categorizing costs in management accounting?
To estimate the impact of costs on managerial decisions
What type of costs are associated with the salary of a Micro-Mac burger chef?
Direct Labour Cost
What is the main difference between management accounting and financial accounting?
Focus on external users versus internal users
What is the PRODUCT COST of Micro-Mac burgers composed of?
Direct Material Cost + Direct Labour Cost + Manufacturing Overhead Costs
What is the main objective of cost classification in management accounting?
To estimate the impact of costs on managerial decisions
What type of costs are associated with the rental of a stall?
Manufacturing Overhead Cost
Identify the various costs associated with making a Micro-Mac burger, including ingredients, labor, and equipment.
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