1.The contemporary management tool that focuses on restrictions that limit a firm's ability to maximise long-run profit is commonly known as:

a.

Simulation.

b.

Linear progression.

c.

Constraint manipulation.

d.

Theory of constraints.

e.

e. Game theory.

2.From the following list of management accounting techniques and/or frameworks, which of them are employed to measure and analyse environmental costs? 1) Activity-based costing. 2) Just in time inventory systems. 3) Quality framework. 4) Life cycle costing. 5) Customer profitability analysis.

	a.	All five.
	b.	1 and 3.
	c.	1, 2 and 3.
	d.	1, 3 and 5.
	e.	1, 3 and 4.

3.Which statement below is the most correct statement explaining the use of the quality framework (prevention, appraisal, internal and external failure) to analyse environmental costs?

	a.	The firm is attempting to control and reduce environmental costs.
	b.	The firm is attempting to control and reduce environmental costs. Spending more at the prevention and appraisal stage is likely to be more than compensated by a reduction of costs at the failure stages.
	c.	The firm is attempting to control and reduce environmental costs, and thereby maximise profits.
	d.	An analysis of costs at each level is most likely to control and reduce environmental costs overall.
	e.	An analysis of environmental costs is not complete unless costs at all of the given answers stages are analysed.

4.From the following list of costs, calculate the amount of contingent environmental costs.

Equipment purchased to reduce emissions				$200,000
Monitoring emissions				$50,000
Fines for breaching environmental regulations				$500,000
Estimated future costs-disposing of firm's products which contain hazardous material				$550,000
Purchase of recyclable material				$130,000
Clean-up costs				$300,000
Estimate of potential liability-oil spill				$600,000
Purchase of recyclable packaging materials				$25,000
Estimate of lost business-adverse TV publicity				$110,000
	a.	$350,000
	b.	$355,000
	c.	$110,000
	d.	$1,100,000
	e.	$550,000

5.In terms of the 'quality' framework, which of the following would be classified as a cost of prevention activity?

	a.	Costs of supplies used in testing and monitoring.
	b.	Depreciation-air cleaning system attached to an exhaust fan in manufacturing equipment.
	c.	Costs of cleaning up plant following a leakage.
	d.	Cost of cleaning up polluted sites.
	e.	None of the given answers.