快速查题-ACCA英国注册会计师试题

Drippy is producing a list of relevant cash flows regarding a decision she has to make. She is considering launching a new type of USB memory stick that guarantees better protection to the host computer.    

Drippy manages many existing products and has a standing arrangement with a technology magazine for advertising space entitling her to advertise each month.  The contract has just been signed and covers the next twelve months.  Payment is made in the month following an advert appearing.  Drippy is going to use the magazine to advertise her exciting new USB stick. 

Is the cost of the advertising space best described as a: 

Fill in the blanks. Demand is said to be elastic when a _______ change in price produces a ________ change in quantity demanded. PED is ________ than 1. Demand is said to be inelastic when a ________  change in price produces a ________ change in quantity demanded. PED is ________ than 1. 

 Fill in the blanks. (a) One of the problems with relying on a full cost-plus approach to pricing is that it fails to recognise that, since price may be determining demand, there will be a …………….. combination of ………. and  ………. (b) An advantage of the full cost-plus approach is that, because the size of the profit margin can be varied, a decision based on a price in excess of full cost should ensure that a company working at ……….. capacity will cover ……….… and make a ……………….. 

 Fill in the blank. 

The ………………. price is the price at which an organisation will break even if it undertakes particular work. 

 Choose the correct word from those highlighted. 

Market skimming/penetration pricing should be used if an organisation wishes to discourage new entrants into a market. 

A product has the following costs.  

                                                         $

Direct materials                           8 

Direct labour                               10 

Variable overheads                     4 

Fixed overheads are $15,000 per month. Budgeted sales per month as 500 units  

What is the profit mark up (the nearest whole percentage) which needs to be added to marginal cost to establish a selling price that will allow the product to breakeven? 

 A company currently sells a product for $60 and at this price, demand is 20,000 units per month. It has been estimated that for every $2 increase or reduction in the price, monthly demand will fall or increase by 1,000 units.  

What is the formula for the demand curve for this product? 

 When is a market penetration pricing policy appropriate?