[11] If an investment's internal rate of return is lower than the market cost of capital: a) the investment should be accepted. b) the investment should be rejected. c) the investment should be put on hold. d) more information is needed in order to take a decision. 1 Mark [12] Pompeii Ltd is preparing a cash budget for the six months beginning January 1 2020. The company's expected collection pattern and budgeted sales for the period are as follows: Expected collection pattern 65% collected in the month of sale 20% collected in the month after sale 10% collected in the second month after sale 4% collected in the third month after sale 1% uncollectible Budgeted sales () January 160,000 February 185,000 March 190,000 April 170,000 May 200,000 June 150,000 Pompeii Ltd's estimated total cash collections during April 2020 from sales and accounts receivable will be: a) 155,900. b) 167,000. c) 172,666. d) 173,400. [4] A concrete manufacturer produces four types of concrete totalling 500,000 cubic yards at a joint cost of 2,000,000. Detailed information is as follows: Type J Cubic Yards 75,000 200,000 100,000 125,000 Sales Value W Y 375,000 1,200,000 700,000 850,000 What is the share of joint cost that will be allocated to type W using the constant gross-margin percentage method? a) 2,000,000 b) 252,000 c) 448,000 d) 1,280,000 [5] The primary objective of management accounting is to: 3 Marks a) provide shareholders and potential investors with useful information for decision making. b) provide banks and other creditors with information useful in making credit decisions. c) provide management with information useful for planning and control of operations. d) provide the relevant taxation authorities with information about taxable income