题目

This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version of the exam they are taking. 

While a drag and drop style question is impossible to fully replicate within a paper based medium, some questions of this style have been included for completeness.

 Ace Limited is considering whether or not to cease production of leather-bound diaries.   

Which of the following items are valid factors to consider in this decision?

  The diaries made a loss in the year just passed

  The diaries made a positive contribution in the year just passed

  The market outlook in the long term looks very poor

  The budget for next year shows a loss

  The business also sells pens and many diary buyers will often also buy a pen

  The business was founded to produce and sell diaries 

Drag and drop the correct factors in the box below: 

Chapter6Short-termdecisions

The correct factors to include are:

  The market outlook in the long term looks very poor

  The business also sells pens and many diary buyers will often also buy a pen 

The following were NOT to be included:

  The diaries made a loss in the year just passed is a sunk event

  The diaries made a positive contribution in the year just passed is a sunk event

  The budget for next year shows a loss includes fixed costs and these are not relevant

  The business was founded to produce and sell diaries – things change! 

多做几道

What objectives might the following not for profit organisations have? 

(a) An army                                                (d) A political party 

(b) A local council                                     (e) A college 

(c) A charity 

One of the objectives of a local government body could be 'to provide adequate street lighting throughout the area'. 

(a) How could the 'adequacy' of street lighting be measured? 

(b) Assume that other objectives are to improve road safety in the area and to reduce crime. How much does 'adequate' street lighting contribute to each of these aims? 

(c) What is an excessive amount of money to pay for adequately lit streets, improved road safety and reduced crime? How much is too little? 

What general objectives of non profit seeking organisations are being described in each of the following? 

(a) Maximising what is offered 

(b) Satisfying the wants of staff and volunteers 

(c) Equivalent to profit maximisation 

(d) Matching capacity available 

A division with capital employed of $400,000 currently earns an ROI of 22%. It can make an additional investment of $50,000 for a five year life with nil residual value. The average net profit from this investment would be $12,000 after depreciation. The division's cost of capital is 14%. 

What are the residual incomes before and after the investment? 

The transfer pricing system operated by a divisional company has the potential to make a significant contribution towards the achievement of corporate financial objectives. 

Required 

Explain the potential benefits of operating a transfer pricing system within a divisionalised company. 

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