快速查题-ACCA英国注册会计师试题

 Which of the following statements regarding zero based budgeting are correct? 

(1) It is best applied to support expenses rather than to direct costs. 

(2) It can link strategic goals to specific functional areas. 

(3) It carries forward inefficiencies from previous budget periods. 

(4) It is consistent with a top-down budgeting approach. 

The following statements have been made about the drawbacks of activity-based budgeting:  

(1) It is not always useful or applicable, as in the short term many overhead costs are not controllable and do not vary directly with changes in the volume of activity for the cost driver. 

(2) ABB will not be able to provide useful information for a total quality management programme (TQM). 

Which of the above statement(s) is/are true? 

 Incremental budgeting is widely used and is a particularly efficient form of budgeting. 

 The following pay-off table shows the monthly contribution that would be earned from each of four mutually exclusive options (options A-D) given three different outcome situations. It is not possible to predict or estimate the probability of each outcome scenario. 

If the choice of option is made on the basis of the minimax regret criterion, which option will be selected? 

 Match the type of investor to the attitude to risk:

Risk averse              (i) Minimax regret                          (ii) Relevant costing  

                                    (iii) Perfect information                (iv) Maximin  

                                    (v) Maximax                                    (iv) Expected values 

Risk seeker              (i) Minimax regret                         (ii) Relevant costing 

                                    (iii) Perfect information                (iv) Maximin 

                                    (v) Maximax                                    (iv) Expected values 

Risk neutral              (i) Minimax regret                          (ii) Relevant costing  

                                    (iii) Perfect information                (iv) Maximin 

                                    (v) Maximax                                    (iv) Expected values 

 A supplier will supply company A in batches of 100 units, but daily demand is unpredictable. Company A has prepared a payoff table to reflect the expected profits if different quantities are purchased and in differing market demand conditions.   

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If the maximin criteria is applied, how many units would be purchased from the supplier? 

State which option would be selected using  

The maximin decision rule 

 Identify three major non-financial factors that AB would need to consider in making its eventual decision as to what to do.