SECTION A: [36 MARKS] Answer ALL questions in this section. 1. Explain the scope of management Accounting. (8 marks) 2. How management Accounting is different from Financial Accounting. (State 4 points of differentiation) (8 marks) 3. Mr. Taylor owns a service station in Palapye. Taylor is considering leasing a machine that will allow him to offer customers the mandatory emissions test. Every car in the country must be tested every two years. The machine costs P6 000 per month to lese. The variable cost per test (i.e. per car inspected) is P10. The amount that Taylor can charge each customer is set by the Law, and is currently P40. a) How many inspections would Mr. Taylor have to perform monthly to break even from this part of his business? (3 marks) b) How many inspections would Taylor have to perform monthly to generate a profit of P3 000 from this part of his business? (3 marks) (4 marks) 4. Explain the following: (a). Static Budget (b). Flexible Budget (c). Flexible Budget Variance (4 marks) (2 marks) 5. The BEST Bakery is considering purchasing a new oven. The oven will cost PI 500, and the owner anticipates that the oven will increase the bakery's future net cash inflows by P800 per year for the next five years. What is the anticipated NPV of this capital acquisition, if the bakery's discount rate is 10%? (4 marks)