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1. FILL BLANK
A company wishes to compare the variability of its monthly sales revenue in country A with that of country B.
The two countries use different currencies.
The monthly sales revenue for the last 48 months in country A (which is measured in $) has been analysed as follows.
What is the coefficient of variation of this data?
Give your answer as a percentage to one decimal place.
2. The concept of the time value of money:
A) recognises the fact that a cash flow received today will always be worth more than a larger cash flow received in the future.
B) recognises the fact that earlier cash flows are worth more because they can be reinvested.
C) determines the higher interest rates that must be paid on longer term loans.
D) is used for making short term decisions.
3. Which of the following is NOT a characteristic of useful operational level information?
A) Available immediately.
B) Governed by financial reporting standards.
C) Focused on the decision to be made.
D) Sufficiently accurate.
4. A company has spent $5,000 on a report into the viability of using a subcontractor. The report highlighted the following:
A machine purchased six years ago for $30,000 would become surplus to requirements. It has a written- down value of $10,000 but would be resold for $12,000.
A machine operator would be made redundant and would receive a redundancy payment of $40,000.
The administration of the subcontractor arrangement would cost the company $25,000 each year.
Which THREE of the following are relevant for the decision? (Choose three.)
A) A relevant cost of $10,000 for the machine.
B) A relevant cost of $5,000 for the viability report.
C) A relevant cost of $40,000 for the redundancy payment.
D) A relevant cost of $25,000 each year for administration.
E) A relevant revenue of $12,000 for the machine.
F) A relevant cost of $30,000 for the machine.
5. The following is an extract from a budgetary control report for the latest period:
The budget variance for prime cost is:
A) $18,580 adverse
B) $3,260 adverse
C) $3,260 favourable
D) $3,340 adverse
Solutions:
| Question # 1 Answer: Only visible for members | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: A,B,D | Question # 5 Answer: A |
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