All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
Search
Search
Sign In
Register
study help
business
management and cost accounting
Questions and Answers of
Management And Cost Accounting
Intermediate. A clothing retailer is considering which of three mutually exclusive advertising packages to use when it launches its new range of autumn fashion. The sales revenue from the range will
Intermediate. A company is considering introducing a new product. Market research suggests that the selling price per unit should be $24, $25 or $26. The marketing department has produced estimates
Intermediate. A company uses a third party delivery service to deliver goods to customers. The current average cost per delivery is $12.50. The company is trying to decide whether to establish an
An events management company is trying to decide whether or not to advertise an outdoor concert. The sale of tickets is dependent on the weather. If the weather is poor it is expected that 5000
Intermediate: Decisions based on maximin, maximax and expected value. Cement Co. is a company specializing in the manufacture of cement, a product used in the building industry.The company has found
Advanced: Evaluation of a project using different risk measures Mackerel Contracting (Mackerel) is a listed defence contractor working mainly for its domestic government in Zedland. At present,
What is meant by the opportunity cost of an investment?
Distinguish between compounding and discounting.(pp. 311-313)13.3. Explain what is meant by the term ‘time value of money’.(p. 313)
Describe the concept of net present value (NPV). (p. 313)
Explain what is meant by the internal rate of return (IRR).(p. 316)
Distinguish between independent and mutually exclusive projects. (p. 320)
Explain the theoretical arguments for preferring NPV to IRR when choosing among mutually exclusive projects. (p. 320)
Why might managers choose to use IRR in preference to NPV? (p. 317)
Describe the payback method. What are its main strengths and weaknesses? (pp. 322-325)
Describe the accounting rate of return. What are its main strengths and weaknesses? (pp. 325-326)
Distinguish between the payback method and discounted payback method. (pp. 323-324)
What impact can the way in which a manager’s performance is measured have on capital investment decisions? (pp. 326-327)
What role does it play in capital investment decisions?
Intermediate. A company is considering investing in manufacturing equipment that has a three-year life. The purchase price of the equipment is $70000 and at the end of the three-year period it will
Intermediate. A company’s financial director is deciding whether to purchase or lease two assets:Asset 1 has a ten-year life with a zero residual value. It can be purchased for $120 000. If the
Intermediate. The details of four short-term investments are as follows:Investment A pays interest of 1.7 per cent every 3 months Investment B pays interest of 3.4 per cent every 6 months Investment
Intermediate. A $100 bond has a coupon rate of 8 per cent per annum and is due to mature in four years’ time. The next interest payment is due in one years’ time. Similar bonds have a yield to
Intermediate. A bond has a coupon rate of 6 per cent and will repay its nominal value of $100 when it matures after four years.The bond will be purchased today for $103 ex-interest and held until
Intermediate. PQ is purchasing the lease on a property which has an annual lease payment of $300 in perpetuity. The lease payments will be paid annually in advance.PQ has a cost of capital of 12 per
Intermediate. Sydney is considering making a monthly investment for her son who will be five years old on his next birthday. She wishes to make payments until his 18th birthday and intends to pay
Intermediate. Sydney wishes to make an investment on a monthly basis starting next month for five years. The payments into the fund would be made on the first day of each month.The interest rate will
Intermediate. Augustine wishes to take out a loan for£2000. The interest rate on this loan would be 10 per cent per annum and Augustine wishes to make equal monthly repayments, comprising interest
Intermediate: Calculation of terminal values and monthly repayments.(a) James is considering paying £50 into a fund on a monthly basis for ten years starting in one year’s time. The interest
per cent.Required:(i) Calculate the monthly repayments for loans 1 and 2 to two decimal places. (5 marks)(ii) Calculate the total amount repaid under each loan and purely on the basis of this
Advanced: Relevant cash flows and calculation of NPV and IRR. A car manufacturer has been experiencing financial difficulties over the past few years. Sales have reduced significantly as a result of
What is capital rationing? Distinguish between hard and soft capital rationing. (pp. 340-341)
Explain how the optimum investment programme should be determined when capital is rationed for a single period.(pp. 340-342)
How does taxation affect the appraisal of capital investments? (pp. 342-343)
Define writing-down allowances (also known as depreciation tax shields or capital allowances), balancing allowances and balancing charges. (pp. 342-343)
How does the presence of inflation affect the appraisal of capital investments? (p. 345)
Distinguish between nominal cash flows and real cash flows and nominal discount rates and real discount rates. (p. 345)
Why is it necessary to use risk-adjusted discount rates to appraise capital investments? (pp. 347-348)
Explain how risk-adjusted discount rates are calculated.(pp. 347-350)
Howcan sensitivity analysis help in appraising capital investments? What are the limitations of sensitivity analysis? (pp. 350-352)
Describe the different forms of sensitivity analysis.(p. 352)
Describe the stages involved in the initiation, authorization and review of projects. (pp. 353-354)
Explain what a post-completion audit is and how it can provide useful benefits. (p. 354)
A company has a money cost of capital of 9 per cent. The rate of inflation is 3 per cent. The company’s real cost of capital is nearest to:(a) 6.0%(b) 12.0%{c) 12.3% (d) 5.8%
A capital investment project has the following estimated cash flows and present values:Required:Calculate the sensitivity of the investment decision to a change in the annual contribution.(3
A capital investment project has the following estimated cash flows and present values:Required:(i) Calculate the sensitivity of the investment decision to a change in the annual fixed costs.(3
A company is considering investing in a project with an expected life of four years. The project has a positive net present value of $280000 when cash flows are discounted at 12 per cent per annum.
A company is considering five investment projects as follows:The company has $40000 available for investment. Projects C and D are mutually exclusive. All projects can be undertaken only once and are
TS operates a fleet of vehicles and is considering whether to replace the vehicles on a one, two or three year cycle.Each vehicle costs $25 000. The operating costs per vehicle for each year and the
Advanced. The following data relate to both questions(a) and (b). A company is considering investing in a manufacturing project that would have a three-year life span. The investment would involve an
Advanced: Calculation of NPV, IRR and discounted payback. JK manufactures high-quality tablet PCs using just-in-time (JIT) production methods. The market has grown significantly over the past few
Define the term ‘budget’. How are budgets used in planning? (pp. 368-373)
Describe the different stages in the planning and control process. (pp. 369-371)
Distinguish between budgeting and long-range planning.How are they related? (pp. 370-371)
Describe the different purposes of budgeting.(pp. 371-372)
Explain what is meant by the term ‘management by exception’. (p. 372)
Describe how the different roles of budgets can conflict with one an other. (p. 373)
_ Distinguish between continuous and rolling budgets.(p. 373)
Describe the different stages in the budgeting process.(pp. 374-378)
All budgets depend on the sales budget. Do you agree?Explain. (p. 375)
What is a master budget? (p. 378)
Define incremental budgeting. (p. 388)
What are the distinguishing features of activity-based budgeting? (388-390)
Describe the five different stages that are involved with activity-based-budgeting. (pp. 388-390)
What are the distinguishing features of budgeting in nonprofit-making organizations? (pp. 390-391)
What are line item budgets? (pp. 390-391)
How does zero-based budgeting differ from traditional budgeting? (pp. 391-392)
What are discretionary costs? (p. 391)
Distinguish between zero-based budgeting and prioritybased incremental budgeting. (p. 393)
Basic. PJ has budgeted sales for the next two years of 144000 units per annum spread evenly throughout each year. The estimated closing inventory at the end of this year is 6500 units.PJ wants to
Basic. RT is preparing the production budget for Product R and the material purchases budget for Material T for next year.Each unit of Product R requires 6kg of Material T.The estimated inventory at
Basic. CH is a building supplies company that sells products to trade and private customers.Budget data for each of the six months to March are given below:Eighty per cent of the value of credit
Basic: Rolling budgets. Designit is a small company providing design consultancy to a limited number of large clients.The business is mature and fairly stable year on year. It has 30 employees and is
Distinguish between ‘controls’ and ‘control’. (p. 404)
Identify and describe three different types of control mechanism used by companies. (pp. 405-407)
Provide examples of behavioural, action, social, personnel and cultural controls: (pp. 405-407)
Describe the different stages that are involved with output/results controls. (pp. 406-407)
Distinguish between feedback and feed-forward controls.Provide an example of each type of control. (p. 407)
Describe some of the harmful side-effects that can occur with output/results controls. (pp. 408-409)
Explain the circumstances in which it is appropriate or inappropriate to use personnel/cultural, behavioural/action and results/output controls. (pp. 409-410)
Describe the four different types of responsibility centre.(pp. 411-413)
Explain what is meant by the term ‘responsibility accounting’. (p. 413)
What factors must be taken into account when operating a responsibility accounting system? (p. 413)
What is the ‘controllability principle’? Describe the different ways in which the principle can be applied.(pp. 414-417)
What are flexible budgets? Why are they preferred to fixed(static budgets)? (p. 415)
What is meant by the term ‘aspiration level’? (p. 418)
Describe the effect of the level of budget difficulty on motivation and performance. (pp. 418-419)
Distinguish between participation and top-down budget setting. (p. 420)
Describe the factors influencing the effectiveness of participation in the budget process. (p. 420)
What are the limitations of participation in the budget process? (p. 420)
Distinguish between budget-constrained, profit-conscious and non-accounting styles of performance evaluation.(p. 421)
Under what circumstances is it considered appropriate to use (a) the budget-constrained and (b) the profit-conscious style of performance evaluation? (pp. 421-422)
Advanced. A transport company is preparing its cost budgets for the coming year. It has been set both social objectives and cost targets by (fie government which it must achieve in order to receive a
Advanced. A college is preparing its budget for next year. In previous years the director of the college has prepared the college budget without the participation of senior staff and presented it to
Advanced. ‘Responsibility accounting is based on the application of the controllability principle.’Required:(a) Explain the ‘controllability’ principle and why its application is difficult in
Advanced. ‘A competent management accounting system should endeavour to enhance the performance of a company. It should, in particular, consider the behavioural consequences of the
Advanced. A firm of solicitors is using budgetary control.The senior partner estimated the demand for the year for each of the firm's four divisions: civil, criminal, corporate and property. A
Describe the difference between budgeted and standard costs. (p. 434)
Explain how a standard costing system operates. (p. 435)
What are standard hours produced? What purpose do they serve? (p. 440)
Describe the different purposes of a standard costing system. (pp. 440-441)
Showing 200 - 300
of 1681
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last