The following information for advertising and sales has been established over the past six months：
Month Sales revenue Advertising expenditure
$'000 $'000
1 155 3
2 125 2.5
3 200 6
4 175 5.5
5 150 .5
6 225 6.5
Using the high-low method which of the following is the correct equation for linking advertising and sales from the above data?
Independent variable x = advertising expenditure
Dependent variable y = sales revenue
Highest x = month 6 = $6,500
Highest y = month 6 = $225,000
Lowest x = month 2 = $2,500
Lowest y = month 2 = $125,000
Using the high-low method：
Advertising expenditure Sales revenue
$ $
Highest 6,500 225,000
Lowest 2,500 125,000
4,000 100,000
Sales revenue generated for every $1 spent on advertising =$100,000/$4,000 = $25 per $1 spent.
... If $6,500 is spent on advertising, expected sales revenue = $6,500 x $25 = $162,500
... Sales revenue expected without any expenditure on advertising = $225,000 - $162,500 = $62,500
... Sales revenue = 62,500 = (25 x advertising expenditure)
多做几道
Which of the following statements about management accounting information is/are true?
(i) They must be stated in purely monetary terms.
(ii) Limited companies must, by law, prepare management accounts.
(iii) They serve as a future planning tool and are not used as an historical record.
Which of the following statements is/are correct?
(i) A management control system is a term used to describe the hardware and software used to drive a database system which produces information outputs that are easily assimilated by management.
(ii) An objective is a course of action that an organisation might pursue in order to achieve its strategy.
(iii) Information is data that has been processed into a form meaningful to the recipient.
Good information should have certain qualities. Which of the following are qualities of good information?(i) Complete(ii) Extensive(iii) Relevant(iv) Accurate
Monthly variance reports are an example of which one of the following types of management information?
Which of the following statements is/are correct?
(i) Information for decision-making should incorporate uncertainty in some way
(ii) The data used to prepare financial accounts and management accounts are the
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