ATD Level III Fundamentals of Management Accounting Questions and Answers April 2022

Institution: KASNEB

Course: ATD Level III

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ATD Level III Fundamentals of Management Accounting Questions and Answers April 2022

KASNEB
ATD LEVEL III
FUNDAMENTALS OF MANAGEMENT ACCOUNTING
MONDAY: 4 APRIL 2022. Afternoon paper Time Allowed: 3 hours
Answer ALL questions. Marks allocated to each question are shown at the end of the question. Show ALL your workings. Do NOT write anything on this paper.
QUESTION ONE
(a) Using a suitable example in each case, explain the meaning of the following types of costs:
(i) Differential costs. (2 marks)
(ii) Out of pocket costs. (2 marks)
(iii) Sunk costs. (2 marks)
(b) Everest Company manufactures a single product branded “solo”.
The following information relates to the month of March 2022 for an output level of 100,000 units:
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