Mini Need To Know

Question 1

Sunk Costs

Answer 1

Costs of resources already acquired where the total will be unaffected by the choice between various alternatives. They are irrelevant information for decision making.

Question 2

Management vs Financial Accounting

Answer 2

Management accounting is concerned with the provision of information to people within the organisation to help make better decisions and improve efficiency and effectiveness.
Whereas financial accounting is concerned with the provision of information to external parties.

Question 3

ABC

Answer 3

Overheads, comprising of both direct and indirect costs, are assigned to each major activity.

Question 4

Activities

Answer 4

The aggregation of many different tasks, events or units of work that cause the consumption of resources.

Question 5

Cost driver

Answer 5

The basis that is used to allocate costs to cost objects.