Question 1:

a. What are the characteristics of good accounting information?

b. Differentiate between management accounting and cost accounting
c. The table below shows actual output data for first half of 2020. Output for January 2021 is
expected to be 120, 000 units, while the factory will close down for December for Christmas.

July Aug. Sept. Oct. Nov. Dec.

Output(1000 units)
70 80 90 75 110 100
Cost: ₦’000 ₦’000 ₦’000 ₦’000 ₦’000 ₦’000
Material 1500 2500 2700 2030 3080 2800
Direct labour 2100 3010 3400 3200 4500 3900
Supervising labour 240 250 270 260 210 300
Maintenance 220 230 220 240 280 260
Depreciation 1100 1100 1100 1100 1100 1100
Miscellaneous 1210 1500 1420 1500 1610 1500
TOTAL COST 6,370 8,590 9,110 8,330 10,780 9,860

You are required to:

i. determine variable and fixed cost using high & low method, simultaneous equation method and
regression method
ii. discuss the use of each of the three methods mentioned above
iii. the total cost of producing 130,000 in January 2021 when the company shall resume production
after Christmas holiday

Oil & Gas Accounting

In 1890, following the industrial revolution, there was a mass production of automobiles which created a
huge demand for gasoline in the Oil and Gas Industry worldwide and this motivated many companies to
go into a more massive and aggressive exploration for crude Oil.

You are required to succinctly discuss the history of crude Oil exploration and production in Nigeria