1) Which one of the following does not constitute a meaningful basis for the interpretation and analyses of financial statements? A. Comparison to prior years B. Comparison to accepted standards- C. Comparison to industry average D. Comparison to prior report from think-tanks

2) With reference to product life cycle costing, the largest costs are committed during the..... A. product manufacturing and sales phase. B. product service and abandonment phase. C. product planning and design phase. D. product servitization and decline phase.

3) The selling price of product X is set at R1 100 for each unit and sales for the coming year are expected to be 1 000 units. A return of 25% on the investment of R1 200 000 in product X will be required in the coming year. What is the target cost for each unit of product X? A. R800 B. R750 C.R525 D. R1 400

4) Which one of the following decisions is atypical during the product planning and design phase? A. Target costing B. Cost containment C. Pricing policy D. Reverse engineering

5)In terms of the South African Companies Act, the management of a company is required to perform a.....to determine whether a transaction is financially viable and will not place the business in an unfavourable situation. A.strategic performance test B. review, monitoring and evaluation C. BBEEE-related due diligence assessment D.solvency and liquidity test

6)Study the following four random observations about life cycle costing and answer the following question: I) It identifies all costs which arise in relation to the product each year and then calculates the product's profitability on an annual basis. 11) It focuses on the short-term by identifying costs at the beginning of a product's life cycle. III) It allocates costs to each stage of a product's life cycle and writes them off at the end of each stage. IV) It accumulates a product's costs over its whole life time and works out the overall profitability of a product. Which of the observations above is correct? A. I and III B. IV only C. I and II D. I only

7) Which one of the following best describes target costing? A. Setting a selling price for the company to aim for in the long run. B. Setting a price by adding a desired profit margin to a production cost. C. Setting a cost for the use in the calculation of variances. D. Setting a cost by subtracting a desired profit margin from a competitive market price.