单选题Tree Co is considering employing a sales manager. Market research has shown that a good sales manager can increase profit by 30%, an average one by 20% and a poor one by 10%.
Experience has shown that the company has attracted a good sales manager 35% of the time, an average one 45% of the time and a poor one 20% of the time.
The company’s normal profits are $180,000 per annum and the sales manager’s salary would be $40,000 perannum.
Based on the expected value criterion, which of the following represents the correct advice which Tree Co shouldbe given?
单选题The following costs have arisen in relation to the production of a product:
(i) Planning and concept design costs
(ii) Testing costs
(iii) Production costs
(iv) Distribution and customer service costs
In calculating the life cycle costs of a product, which of the above items would be included?
单选题Which of the following statements describes target costing?
单选题Thefollowingtableshowsthenumberofclientswhoattendedaparticularaccountancypracticeoverthelastfourweeksandthetotalcostsincurredduringeachoftheweeks:Applyingthehighlowmethodtotheaboveinformation,whichofthefollowingcouldbeusedtoforecasttotalcost($)fromthenumberofclientsexpectedtoattend(wherex=theexpectednumberofclients)?
单选题The following scenario relates to questions 1620.
Mylo runs a cafeteria situated on the ground floor of a large corporate office block. Each of the five floors of the building are occupied and there are in total 1,240 employees.
Mylo sells lunches and snacks in the cafeteria. The lunch menu is freshly prepared each morning and Mylo has to decide how many meals to make each day. As the office block is located in the city centre, there are several other places situated around the building where staff can buy their lunch, so the level of demand for lunches in the cafeteria is uncertain.
Mylo has analysed daily sales over the previous six months and established four possible demand levels and their associated probabilities. He has produced the following payoff table to show the daily profits which could be earned from the lunch sales in the cafeteria:
单选题PComakestwoproducts–P1andP2–budgeteddetailsofwhichareasfollows:IfonlyproductP1weretobemade,howmanyunits(tothenearestunit)wouldneedtobesoldinordertoachieveaprofitof$60,000eachyear?
单选题A manufacturing company uses three processes to make its two products, X and Y
单选题Acompanyhasthefollowingproductionplannedforthenextfourweeks.Thefiguresreflectthefullcapacitylevelofoperations.Plannedoutputisequaltothemaximumdemandperproduct.Ifthestrikegoesahead,whichproductorproductsshouldbeproducedifprofitsaretobemaximised?
单选题The following statements have been made in relation to the concepts outlined in throughput accounting:
(i)Inventory levels should be kept to a minimum
(ii)All machines within a factory should be 100% efficient, with no idle time
Which of the above statements is/are correct?
单选题Acompanymanufacturesthreeproductsusingdifferentamountsofthesamegradeoflabour,whichisinshortsupply.Thefollowingbudgeteddatarelatestotheproducts:Whatordershouldtheproductsbemanufacturedintoensurethatprofitismaximised?P1P2P3
单选题The following statements have been made about the materials mix variance for a company manufacturing different products using the same type of material (measured in kgs):
(i) The mix variance can be calculated by taking the difference between the actual quantity in the standard mix andthe actual quantity in the actual mix, then multiplying it by the actual cost per kg
(ii)The mix variance arises because there is a difference between what the input should have been for the output achieved and the actual output
Which of the above statements is/are correct?
单选题A government department generates information which should not be disclosed to anyone who works outside of the department
单选题At the end of 20X1, an investment centre has net assets of $1m and annual operating profits of $190,000
单选题Acompanymanufacturestwoproducts,CandD,forwhichthefollowinginformationisavailable:Usingactivity-basedcosting,whatisthebudgetedoverheadcostperunitofproductD?
单选题The following statements have been made in relation to activity-based costing:
(1) A cost driver is a factor which causes a change in the cost of an activity
(2) Traditional absorption costing tends to under-estimate overhead costs for high volume products
Which of the above statements is/are true?
单选题The following scenario relates to questions 2630
单选题Which of the following describes a ‘basic standard’ within the context of budgeting?
单选题The following scenario relates to questions 2125.
Corfe Co is a business which manufactures computer laptop batteries and it has developed a new battery which has a longer usage time than batteries currently available in laptops. The selling price of the battery is forecast to be $45.
The maximum production capacity of Corfe Co is 262,500 units. The companys management accountant is currently preparing an annual flexible budget and has collected the following information so far:
In addition to the above costs, the management accountant estimates that for each increment of 50,000 units produced, one supervisor will need to be employed. A supervisors annual salary is $35,000.
The production manager does not understand why the flexible budgets have been produced as he has always used a fixed budget previously.
单选题X Co uses a throughput accounting system. Details of product A, per unit, are as follows:
Selling price $320
Material costs $80
Conversion costs $60
Time on bottleneck resource 6 minutes
What is the return per hour for product A?
单选题A division is considering investing in capital equipment costing $2·7m. The useful economic life of the equipment isexpected to be 50 years, with no resale value at the end of the period. The forecast return on the initial investmentis 15% per annum before depreciation. The division’s cost of capital is 7%.
What is the expected annual residual income of the initial investment?