1. A divisional manager read on the internet that sales of their division's products are expected to rise by 50% next year. They then read a second article which suggested growth would be only 30% and a third which forecast 12%. The sales budget was constructed using growth of 50%. A year later it was confirmed that sales had risen by 12%. What type of bias affected the divisional manager's decision making? OA. Self-selection OB. Cognitive OC. Confirmation OD. Anchoring 3. Airplan plc budgets to produce 2,400 air conditioning units per annum with a standard contribution of 1,400 per unit. The following Favourable (F) and Adverse (A) variances were reported for the year 20X2. Variance 160,000 (A) 120,000 (F) 125,000 (A) 222,000 (F) Material total. Material price. Labour total. Labour price. Sales price. Sales volume. Fixed overhead expenditure. Variable overhead total. The budgeted fixed overhead expenditure for 20X2 was 3,000,000. The actual profit for 20X2 was OA. 3,789,000 OB. 1,343,000 OC. 1,121,000 OD. 1,001,000 214,000 (A) 416,000 (F) 212,000 (F) 512,000 (F) 6. The financial year end for Pergola Ltd is 31 December. On 31 December 20X8 Pergola disposed of a non-current asset with a book value of 150,000 for net proceeds after sales costs of 200,000. Immediately prior to the sale Pergola's net assets were 3,000,000 and the company had achieved a Return On Investment (ROI) in 20X8 of 18%. Calculate Pergola's ROI for 20X8 after making the disposal. OA. 17.7% OB. 19.3% OC. 20.3% OD. 20.7% 1. A divisional manager read on the internet that sales of their division's products are expected to rise by 50% next year. They then read a second article which suggested growth would be only 30% and a third which forecast 12%. The sales budget was constructed using growth of 50%. A year later it was confirmed that sales had risen by 12%. What type of bias affected the divisional manager's decision making? OA. Self-selection OB. Cognitive OC. Confirmation OD. Anchoring 3. Airplan plc budgets to produce 2,400 air conditioning units per annum with a standard contribution of 1,400 per unit. The following Favourable (F) and Adverse (A) variances were reported for the year 20X2. Variance 160,000 (A) 120,000 (F) 125,000 (A) 222,000 (F) Material total. Material price. Labour total. Labour price. Sales price. Sales volume. Fixed overhead expenditure. Variable overhead total. The budgeted fixed overhead expenditure for 20X2 was 3,000,000. The actual profit for 20X2 was OA. 3,789,000 OB. 1,343,000 OC. 1,121,000 OD. 1,001,000 214,000 (A) 416,000 (F) 212,000 (F) 512,000 (F) 6. The financial year end for Pergola Ltd is 31 December. On 31 December 20X8 Pergola disposed of a non-current asset with a book value of 150,000 for net proceeds after sales costs of 200,000. Immediately prior to the sale Pergola's net assets were 3,000,000 and the company had achieved a Return On Investment (ROI) in 20X8 of 18%. Calculate Pergola's ROI for 20X8 after making the disposal. OA. 17.7% OB. 19.3% OC. 20.3% OD. 20.7%
