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Part B Question 1 (30 Marks) Cost accounting is an accounting process that measures all of the costs associated with production, including both fixed and variable costs

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Part B Question 1 (30 Marks) Cost accounting is an accounting process that measures all of the costs associated with production, including both fixed and variable costs. The purpose of cost accounting is to assist management in decision-making processes that optimize operations based on efficient cost management. Required: Identify and clearly explain 5 different types of costs that are used in managerial decision making. In addition, provide a clear and relevant example for each of these costs. Question 2 (20 Marks) The role of management accountants has been well-known to the corporate world as they widely contribute for performing planning, controlling and decision making functions effectively and efficiently through providing solid accounting information with good analysis. Liebherr Industries has been growing in terms of revenue and its customer base over the past decade. The Board of Directors of the company has been claiming that they should have one management accountant for their company to achieve better performance in the coming periods. Production and Cost Details Liebherr manufactures and sells many replacement parts for its equipment. PX-111 is one of such parts that has following cost and selling price structure: Information Selling Price S per unit 700 Direct Material 300 300 (per unit of material) 50 per hour Direct Labour cost 300 6 hours Number of labor hours needed to manufacture one unit of product Fixed Costs for the company $40,000 B292 TM (Fall 2021-2022) Estimations for the next year 2021 The company has estimated the following information, (1) Sales Estimations First Quarter Second Quarter Third Quarter Fourth Quarter Number of units to be sold (Units) 1,000 1,100 1,200 1,300 (in Inventory estimations Inventory Beginning (first quarter) Ending Finished Goods 200 units The company desires to have an ending inventory each quarter equal to 25% of the next quarter's sales. The first quarter's sales for the following year (2022) is expected to be 1.400 units The company desires the ending balance in materials inventory to be 45% of the next quarter's cost of materials. The cost of materials for the first quarter in the following year (2022) is expected to be $170,400 Materials S120,000 Required: Based on the estimated information given above, prepare A. Sales Budget (10 marks) B. Production Budget (10 marks) END OF TMA B292 T'MA (Fall 2021-2022)