1. The key financial objective pursued by most businesses seems to be:

1. Maximisation of shareholder wealth
2. Maximisation of net profit after tax
3. Maximisation of sales revenue
4. Maximisation of the rate of growth

3. Which costing method usually encourages workers to find ways to reduce the unit costs of a product during the production phase?

1. Kaizen
2. Target
3. Activity-based
4. Total life-cycle

1. Gigi plc is considering the investment in a project that has an initial cash outlay followed by a series of net cash inflows. The business applied the NPV and IRR methods to evaluate the proposal but, after the evaluation had been undertaken, it was found that the correct cost of capital figure was lower than that used in the evaluation.

What will be the effect of correcting for this error on the NPV and IRR figures?

Effect on

NPV IRR

1. Decrease Decrease
2. Decrease No change
3. Increase Increase
4. Increase No Change

1. Which one of the following best describes the direct material price variance?

1. The difference between the actual cost of the material used and the actual quantity of material used at the standard direct material cost per unit Q variance
2. The difference between the actual direct material cost and direct material cost according to the flexed budget
3. The difference between the actual cost of the material used and the standard quantity of material used at the actual direct material cost per unit
4. The difference between the standard quantity of material used at the standard cost per unit and the actual quantity of material used at the standard direct material cost per unit