The fields of accounting and finance are broad and are divisible into many sub-fields: (a) Differentiate between management accounting and financial accounting

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The fields of accounting and finance are broad and are divisible into many sub-fields:

(a) Differentiate between management accounting and financial accounting

(b) Using illustrations distinguish between the following:

(i) Job costing and process costing

(ii) Avoidable and unavoidable costs

(iii) Describe the two purposes for which cost information is requested

(c) Calculate direct material used, direct labour, and manufacturing overheads given that;

  • Total conversion cost is N$500 000
  • Direct labour and the other element of conversion cost are in the ratio of 3:2 to total converstion cost
  • Direct material is 5 times more than indirect material and 3 times more than direct labour.
  • Indirect material is already included in the N$500 000 conversion cost.
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