Capital investment decisions: 1
The evidence of many recent studies suggests that there are major differences
between current theories of investment appraisal and the methods which firms
actually use in evaluating long-term investments.
Question IM 13.1
You are the management accountant of T plc. The following computer printout
shows details relating to April:
Selling price per unit
price per kg
hours per unit
rate per hour
T14 Cost management
Question IM 21.4
A company is proposing the introduction of an activity-based costing (ABC) system
as a basis for much of its management accounting information.
(a) Briefly describe how ABC is different from a
Question IM 19.5
NPV and ROI and
a discussion as to
plus a further
J plcs business is organized
Tutorial 10 20.15 Division A transfers 100,000 units of a component to Division B each year.
The market price of the component is 25 per unit.
Division A's variable cost is 15 per unit.
Division A's fixed costs are 500,000 each year.
What price per unit w
17.16 Basic. A company uses standard absorption costing. The following
information was recorded by the company for October:
(a) The sales price variance for October was:
(i) 38 500 Fav.
(ii) 41 000 Fav.
(iii) 41 000 Adverse
(iv) 65 600 Adverse
(b) The sal
Tutorial 4 - 5 The budgeting process
Question IM 15.1
(a) the objectives of budgetary planning and control systems;
(b) the organization required for the preparation of a master budget.
(Total 17 marks)
Standard costing and variance
Question IM 17.1
of labour and
(a) JB plc operates a standard marginal cost accounting system. Information
relating to product J, which is made in
COST MANAGEMENT - QUESTION & SOLUTION
Division A of a large divisionalized organization manufactures a single standardized product. Some of
the output is sold externally whilst the remainder is transferred to Division B where it is a subas
Cost and management accounting - Tutorial Questions
(a) Explain the meaning of each of the under-noted measures which may be used
for divisional performance measurement and investment decision-making.
Discuss the advantages and problems as