单选题C Co uses material B, which has a current market price of $0·80 per kg. In a linear program, where the objective is to maximise profit, the shadow price of material B is $2 per kg. The following statements have been made:
(i)Contribution will be increased by $2 for each additional kg of material B purchased at the current market price
(ii)The maximum price which should be paid for an additional kg of material B is $2
(iii)Contribution will be increased by $1·20 for each additional kg of material B purchased at the current market price
(iv)The maximum price which should be paid for an additional kg of material B is $2·80
Which of the above statements is/are correct?
单选题The Fruit Company (F Co) currently grows fruit which customers pick themselves from the fields before paying. F Cois concerned that a large number of customers are eating some of the fruit whilst picking it and are therefore not paying for all of it. As a result, it has to decide whether to hire staff to pick and package the fruit instead. The following values and costs have been identified:
(i)The total sales value of the fruit currently picked and paid for by customers
(ii)The cost of growing the fruit
(iii)The cost of hiring staff to pick and package the fruit
(iv) The total sales value of the fruit if it is picked and packaged by staff instead
Which of the above are relevant to the decision?
单选题The following ratios have been calculated for a company:
Gross profit margin 42%
Operating profit margin 28%
Gearing (debt/equity) 40%
Asset turnover 65%
What is the return on capital employed for the company?
单选题At the start of the year, a division has non-current assets of $4 million and makes no additions or disposals during the year. Depreciation is charged at a rate of 10% per annum on all non-current assets held at the end of the year.Working capital is $0·5 million at the start of the year although this is expected to increase by 20% by the end of theyear. The budgeted profit of the division after depreciation is $1·2m.
What is the expected ROI of the division for the year, based on average capital employed?
单选题The following information is available for a manufacturing company which produces multiple products:
(i)The product mix ratio
(ii)Contribution to sales ratio for each product
(iii)General fixed costs
(iv) Method of apportioning general fixed costs
Which of the above are required in order to calculate the break-even sales revenue for the company?
单选题Caf Co budgeted to sell 10,000 units of a new product in the period at a budgeted selling price of $5 per unit. Actual sales volumes in the period were as budgeted but the actual sales price achieved was only $4 per unit. This was because a competitor launched a similar product at the same time. Caf Co had been unaware that this was going tohappen when it prepared its budget and, had it known this, it would have revised its expected selling price to $3·80per unit, which was the price of the competitor’s product.
What is the sales price planning variance?
单选题Which of the following is an advantage of non-participative budgeting as compared to participative budgeting?
单选题Acompany’ssalesandcostofsalesfigureshaveremainedunchangedforthelasttwoyears.Thefollowinginformationhasbeennoted:Thefollowingstatementshavebeenmadeaboutthecompany’sperformanceforthemostrecentyear:(i)Customersaretakinglongertopayandthismayhavecontributedtothedeclineinthecompany’scurrentratio(ii)Inventorylevelshaveincreasedandthismayhavecontributedtothedeclineinthecompany’squickratioWhichoftheabovestatementsis/aretrue?
单选题TheMobileSandwichCopreparessandwicheswhichitdeliversandsellstoemployeesatlocalbusinesseseachday.Demandvariesbetween325and400sandwicheseachday.Asthedayprogresses,thepriceofthesandwichesisreducedand,attheendoftheday,anysandwichesnotsoldarethrownaway.Thecompanyhaspreparedaregrettabletoshowtheamountofprofitwhichwouldbeforegoneeachdayateachsupplylevel,giventhevaryingdailylevelsofdemand.Applyingthedecisioncriterionofminimaxregret,howmanysandwichesshouldthecompanydecidetosupplyeachday?
单选题The following circumstances may arise in relation to the launch of a new product:
(i)Demand is relatively inelastic
(ii)There are significant economies of scale
(iii)The firm wishes to discourage new entrants to the market
(iv)The product life cycle is particularly short
Which of the above circumstances favour a penetration pricing policy?
单选题Thefollowingbudgeteddataforaparticularperiodwasavailableforacompanysellingtwoproducts:Whatisthetotalsalesquantitycontributionvariancefortheperiod?
单选题A profit centre manager claims that the poor performance of her division is entirely due to factors outside her control. She has submitted the following table along with notes from a market expert, which she believes explains the cause of the poor performance:
After adjusting for the external factors outside the managers control, in which category/categories is there evidence of poor performance?
单选题The following statements have been made about life cycle costing:
(i)It focuses on the short-term by identifying costs at the beginning of a product’s life cycle
(ii)It identifies all costs which arise in relation to the product each year and then calculates the product’s profitability on an annual basis
(iii)It accumulates a product’s costs over its whole life time and works out the overall profitability of a product
(iv)It allocates costs to each stage of a product’s life cycle and writes them off at the end of each stage
Which of the above statements is/are correct?
单选题The following statements have been made about environmental cost accounting:
(1) The majority of environmental costs are already captured within a typical organisation’s accounting system. The difficulty lies in identifying them
(2) Input/output analysis divides material flows within an organisation into three categories: material flows; system flows; and delivery and disposal flows
Which of the above statements is/are true?
单选题X Co uses rolling budgeting, updating its budgets on a quarterly basis. After carrying out the last quarter’s update to the cash budget, it projected a forecast cash deficit of $400,000 at the end of the year. Consequently, the planned
purchase of new capital equipment has been postponed.
Which of the following types of control is the sales manager’s actions an example of?
单选题Oxco has two divisions, A and B. Division A makes a component for air conditioning units which it can only sell to Division B. It has no other outlet for sales.
Current information relating to Division A is as follows:
Marginal cost per unit $100
Transfer price of the component $165
Total production and sales of the component each year 2,200 units
Specific fixed costs of Division A per year $10,000
Cold Co has offered to sell the component to Division B for $140 per unit. If Division B accepts this offer, Division A will be shut.
If Division B accepts Cold Co’s offer, what will be the impact on profits per year for the group as a whole?
单选题The following statements have been made about both standard costing and total quality management (TQM):
(1) They focus on assigning responsibility solely to senior managers
(2) They work well in rapidly changing environments
Which of the above statements is/are true?
单选题Which of the following statements regarding market penetration as a pricing strategy is/are correct?
(1) It is useful if significant economies of scale can be achieved
(2) It is useful if demand for a product is highly elastic
单选题A manufacturer and retailer of kitchens introduces an enterprise resource planning system
单选题Different management accounting techniques can be used to account for environmental costs