1.Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,600 units and of Product B is 950 units. There are three activity cost pools, with estimated costs and expected activity as follows:

Activity Cost Pools Estimated Overhead Cost Expected Activity
Product A Product B Total
Activity 1 $ 38,241 1,100 1,000 2,100
Activity 2 $ 58,551 2,100 800 2,900
Activity 3 $ 72,702 640 620 1,260

The overhead cost per unit of Product B is closest to:

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Management Accounting versus Financial Accounting

Management accounting differs from financial accounting in a number of ways. Indicate whether each of the following characteristics relates to management accounting (MA) or financial accounting (FA):

1. Publically reported

2. Forward looking

3. Usually confidential

4. Complies with accounting standards

5. Reports past performance

6. Uses physical measures as well as monetary ones for reports

7. Fous on business decision making

8. Driven by users needs

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