快速查题-ACCA英国注册会计师试题

The following are types of Key Performance Indicators: 

(i) Return on Capital Employed 

(ii) Gross profit percentage 

(iii) Acid Test ratio 

(iv) Gearing ratio 

Which of the above KPIs would be used to assess the liquidity of a company? 

 Why would a company want to encourage the use of non-financial performance indicators? 

 UU Company has been asked to quote for a special contract. The following information about the material needed has been given:

 Material X: 

Book value                          Scrap value                          Replacement cost 

$5.00 per kg                        $0.50 per kg                             $5.50 per kg  

The contract requires 10 kgs of Material X. There are 250 kgs of this material in inventory which was purchased in error over two years ago. If Material X is modified, at a cost of $2 per kg, it could then be used as a substitute for material Y which is in regular use and currently costs $6 per kg. 

What is the relevant cost of the materials for the special contract? 

VV Company has been asked to quote for a special contract. The contract requires 100 hours of labour. However, the labourers, who are each paid $15 per hour, are working at full capacity.  

There is a shortage of labour in the market. The labour required to undertake this special contract would have to be taken from another contract, Z, which currently utilises 500 hours of labour and generates $5,000 worth of contribution.   

If the labour was taken from contract Z, then the whole of contract Z would have to be delayed, and such delay would invoke a penalty fee of $1,000. 

What is the relevant cost of the labour for the special contract? 

 Dust Co has two divisions, A and B. Each division is currently considering the following separate projects:  

                                                                             Division A                   Division B 

Capital required for the project                    $32.6 million             $22.2 million 

Sales generated by the project                    $14.4 million               $8.8 million 

Operating profit margin                                         30%                             24% 

Cost of capital                                                         10%                             10% 

Current return on investment of division            15%                               9% 

If residual income is used as the basis for the investment decision, which division(s) would choose to invest in the project? 

 Oxco has two divisions, A and B. Division A makes a component for air conditioning units which it can only sell to Division B. It has no other outlet for sales. 

Current information relating to Division A is as follows: 

Marginal cost per unit                                                                                              $100 

Transfer price of the component                                                                           $165 

Total production and sales of the component each year                                2,200 units 

Specific fixed costs of Division A per year                                                     $10,000 

Cold Co has offered to sell the component to Division B for $140 per unit.

If Division B accepts this offer, Division A will be shut. If Division B accepts Cold Co’s offer, what will be the impact on profits per year for the group as a whole? 

 A company has used expected values to evaluate a one-off project. The expected value calculation assumed two possible profit outcomes which were assigned probabilities of 0.4 and 0.6. 

Which of the following statements about this approach are correct? 

(1) The expected value profit is the profit which has the highest probability of being achieved. 

(2) The expected value gives no indication of the dispersion of the possible outcomes. 

(3) Expected values are relatively insensitive to assumptions about probability. 

(4) The expected value may not correspond to any of the actual possible outcomes. 

 Tree Co is considering employing a sales manager. Market research has shown that a good sales manager can increase profit by 30%, an average one by 20% and a poor one by 10%. Experience has shown that the company has attracted a good sales manager 35% of the time, an average one 45% of the time and a poor one 20% of the time. The company’s normal profits are $180,000 per annum and the sales manager’s salary would be $40,000 per annum. 

Based on the expected value criterion, which of the following represents the correct advice which Tree Co should be given? 

 A government is looking at assessing hospitals by reference to a range of both financial and non-financial factors, one of which is survival rates for heart by-pass operations and another is ‘cost per successfully treated patient’. 

Which of the three E’s in the ‘Value For Money’ framework is not measured here? 

 Which of the following statements, regarding the existence of multiple objectives in not-for-profit organisations, is/are correct? 

(1) They ensure goal congruence between stakeholders. 

(2) Compromise between objectives can be problematic.