Sunrise Furnishing Ltd needs to purchase glass panes to make dining tables. Last year Sunrise Furnishing has two suppliers, Eastside and Vitora, with the following supplier related information:

Supplier related activities	Cost per unit of activity driver	Number of activities for Eastside	Number of activities for Vitora
Returning poor quality glass panes	$120 per pane	25 panes	12 panes
Processing purchase orders	$20 per order	18 orders	40 orders
Receiving and inspecting deliveries	$50 per delivery	17 deliveries	15 deliveries
Supplier audit	$1000 per audit	5 audits	2 audits
Rework due to poor quality glass	$100 per table	60 tables	15 tables
Purchase price per glass pane		$100	$150
Number of glass panes purchased		673	780

Calculate the supplier performance index of Eastside (round your answer to 2 decimal places).

4Speedo Manufacturing requires 5400 gadgets per year for production. The purchase cost is $200 per gadget. The firm decides to order 120 gadgets at a time. The cost of ordering is $32 per order and annual carrying cost per gadget is $2. Calculate the total annual cost of ordering and carrying the inventory.

5

Three processes are involved in the manufacturing of Chemical Z. First, the raw mixture goes through the Mixing Process, then the Heating Process, and finally the Bottling Process. The hourly production capacity of the three processes is 400 units, 600 units and 500 units respectively. Assume that a recent process improvement has resulted in a 20% increase in the capacity of the Mixing Process. This process improvement will:

have no effect on the production level per hour of Chemical Z

increase the production of Chemical Z to 600 units per hour

increase the production of Chemical Z to 480 units per hour

increase the production of Chemical Z to 80 units per hour

increase the production of Chemical Z by 480 units per hour

6

Animus Ltd is a mining company. Which of the following is an example of a decision relating to formulating Animus Ltd's corporate-level strategy?

Should Animus Ltd compete based on price or product differentiation?

Should Animus Ltd introduce new technologies?

Should Animus Ltd focus on mining industry, or expand to machinery manufacturing?

Should Animus Ltd hire a new financial controller?

Should Animus Ltd develop a new management accounting information system?

7 A computer firm has a team of 44 computer consultants. These individuals either visit firms in the area on pre-arranged visits, or are called in for emergency repairs. The average time spent on each client is 2 hours. The consultants are usually available to work 8 hours a day, 4 days a week. Taking time off and illness into account, their available time reduces by 25%. Calculate the design capacity of the team (in terms of the number of clients served) for each week. Round your answer to the nearest whole number.

8

According to the Code of Ethics for Professional Accountants, the principle of professional behaviour states that the accountant:

must not disclose information acquired in the course of professional work

must be straightforward in business and professional relationships

must comply with relevant laws and regulations

must not compromise business judgment because of bias

must maintain professional knowledge and skills

9

Deontological theories

determine the ethics of an action based on its consequences

state that ethical decisions provide the greatest good to the greatest number

are concerned with maximising the utility of individuals

are also referred to as consequentialist theories

determine the ethics of an action based on the process of the decision

10

ABC Ltd is a mining company operating in Australia. The company has recently developed a new environmental management accounting system. According to institutional theory, the new system is likely to be the result of:

gaining legitimacy and to imitate other mining companies who are 'doing the right thing'

the Australian culture of being environmentally conscious and the fact that negative environmental impacts can result in significant fines to the company

careful, rational, costbenefit analysis of the information provided by the new system

the new organisational structure that has recently been implemented

the effort of managers and employees towards achieving the organisations goals

11

Doron Ltd has just computed the supplier performance index (SPI) of the company's two suppliers, Xema and Zetta. Xema's SPI is 2.11 and Zetta's SPI is 0.99. Which of the following statements is correct?

Xema is a preferred supplier because it has a higher SPI than Zetta

Both suppliers are considered poor quality suppliers, because their SPI is higher than 0.5

Xema is a preferred supplier because its SPI is greater than 1

For every $0.99 purchase price, Doron has to incur $1 supplier activity costs for Zetta

For every $1 purchase price, Doron has to incur $2.11 supplier activity costs for Xema

12

Edmond Smith is a management accountant. Which of the following is most likely to be Edmond's responsibility?

Creating the vision and mission statements for the company

Compiling the company tax return

Providing an environmental assurance report for his company's shareholders

Ensuring that the internal accounting system is compliant with generally accepted accounting standards

Developing a production cost report for each of the company's three production lines

13

Calculate the total costs of non-value-added activities from the following list of activities:

Activity	Cost $
Manage plant	11613
Make products	30770
Rework defects	13362
Design products	15329
Expedite orders	3154
Resolve supplier disputes	6701
Process customer orders	7508