A public sector service organization is considering whether to use a balanced scorecard or a value for money approach based on the three Es to assess its performance.
Which of the following are correct comparisons of the balanced scorecard and value for money based on the three Es as performance measurement frameworks?
Select ALL that apply.
Which of the following statements about learning curves is correct?
A large supermarket is applying direct product profitability analysis to establish the profit earned by each of the products it sells.
Data for product P are as follows.
The shelf is stacked each time that all units are sold and there are no units of product P left unsold at the end of each day.
What is the direct product profit per unit of product P?
Give your answer to the nearest $0.01.
The following summarised financial statements have been prepared by JNM's North subsidiary for the year just ended:
Calculate the North subsidiary's Residual Income, assuming that JNM's cost of capital is 10%.
Give your answer to the nearest $ million.
A company is considering investing $680,000 in a machine to manufacture a new product. A consultant has been appointed to advise on the investment and the company is committed to paying $10,000 to the consultant in year 1, even if the project does not go ahead.
300,000 units of the new product will be produced and sold each year. Unit cost and revenue information based on this level of output is as follows.
60% of the overhead cost is variable. Of the remainder, 10% consists of allocated head office overheads.
The selling price will increase by 2% each year in line with inflation, beginning in year 2. Fixed price contracts mean that all unit costs will remain unaltered.
Taxation information:
• 100% first year allowance will be available for the purchase of the machinery.
• The taxation rate is 30% of taxable profits, payable in the year after that in which the liability arises.
For the purpose of deciding whether to proceed with the investment, what is the relevant cash flow in year 2?
Place each of the activities described below against the correct classification of quality costs.
A new product is being manufactured for the first time. The first unit required 600 minutes of labor to manufacture. It is expected that there will be a 90% learning curve for the first 20 units.
The learning index for a 90% learning curve is - 0.152.
Calculate the expected labor time to manufacture the 10th unit.
Your answer should be given to the nearest whole minute.
Place the correct quality cost classification against each cost described below.
A company is deciding whether to invest in project A or project B. A decision tree has been prepared to illustrate the investment decision and its associated possible net present values (NPVs).
Which of the following statements is correct?
A learning curve applies to the manufacture of the first 256 units of a product.
During the manufacture of the first 255 units, the time taken to produce each successive unit is expected to:
