MAC2601
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 2025
, MAC2601
Assignment 1 Semester 1 2025
Unique Number:
Due Date: 2025
Principles of Management Accounting
MAC2601 Assignment 1: Financial Statements & Production Overheads Analysis
Question 1 Financial statements are created for … users, whereas management
reports are intended for … users.
a) External, Internal
b) Financial, External
c) Financial, Internal
d) Internal, External
Answer: a) External, Internal
Question 2 Production overheads are assigned to production using a predetermined
recovery rate. If direct labor hours (DLH) were the basis and overheads were under-
applied at year-end, it could be because …
a) Actual DLH were fewer than budgeted and actual overhead costs were lower than
budgeted.
b) Actual DLH exceeded budgeted figures, and actual overhead costs were higher than
budgeted.
c) Actual DLH were higher than budgeted, but actual overhead costs were lower than
budgeted.
, d) Actual DLH were fewer than budgeted, but actual overhead costs were higher than
budgeted.
Answer: d) Actual DLH were fewer than budgeted, but actual overhead costs were
higher than budgeted.
Question 3 The expenses incurred for salaries, wages, and benefits of manufacturing
employees are classified as …
a) Overhead Costs
b) Marketing Costs
c) Labour Costs
d) Material Costs
Answer: c) Labour Costs
Question 4 The break-even point of a company is influenced by …
a) Process Costing
b) Pre-determined Rate
c) Number of Units Sold
d) Selling Price
Answer: d) Selling Price
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 2025
, MAC2601
Assignment 1 Semester 1 2025
Unique Number:
Due Date: 2025
Principles of Management Accounting
MAC2601 Assignment 1: Financial Statements & Production Overheads Analysis
Question 1 Financial statements are created for … users, whereas management
reports are intended for … users.
a) External, Internal
b) Financial, External
c) Financial, Internal
d) Internal, External
Answer: a) External, Internal
Question 2 Production overheads are assigned to production using a predetermined
recovery rate. If direct labor hours (DLH) were the basis and overheads were under-
applied at year-end, it could be because …
a) Actual DLH were fewer than budgeted and actual overhead costs were lower than
budgeted.
b) Actual DLH exceeded budgeted figures, and actual overhead costs were higher than
budgeted.
c) Actual DLH were higher than budgeted, but actual overhead costs were lower than
budgeted.
, d) Actual DLH were fewer than budgeted, but actual overhead costs were higher than
budgeted.
Answer: d) Actual DLH were fewer than budgeted, but actual overhead costs were
higher than budgeted.
Question 3 The expenses incurred for salaries, wages, and benefits of manufacturing
employees are classified as …
a) Overhead Costs
b) Marketing Costs
c) Labour Costs
d) Material Costs
Answer: c) Labour Costs
Question 4 The break-even point of a company is influenced by …
a) Process Costing
b) Pre-determined Rate
c) Number of Units Sold
d) Selling Price
Answer: d) Selling Price
