What is the forecast cost gap for the new game？A.$2·05B.$0·00C.$13·70D.$29·25

the finance director has realised that a 95% learning rate should be applied.

Which of the following statements is true?

A.The target cost will decrease and the cost gap will increase

B.The target cost will increase and the cost gap will decrease

C.The target cost will remain the same and the cost gap will increase

D.The target cost will remain the same and the cost gap will decrease

rvice for customers. The board has asked if target costing could be applied to this service.

Which of the following statements regarding services and the use of target costing within the service sector is true?

A.The purchase of a service transfers ownership to the customer

B.Labour resource usage is high in services relative to material requirements

C.A standard service cannot be produced and so target costing cannot be used

D.Service characteristics include uniformity, perishability and intangibility

The following scenario relates to questions 11–15.

Helot Co develops and sells computer games. It is well known for launching innovative and interactive role-playing games and its new releases are always eagerly anticipated by the gaming community. Customers value the technical excellence of the games and the durability of the product and packaging.

Helot Co has previously used a traditional absorption costing system and full cost plus pricing to cost and price its products. It has recently recruited a new finance director who believes the company would benefit from using target costing. He is keen to try this method on a new game concept called Spartan, which has been recently approved.

After discussion with the board, the finance director undertook some market research to find out customers’ opinions on the new game concept and to assess potential new games offered by competitors. The results were used to establish a target selling price of $45 for Spartan and an estimated total sales volume of 350,000 units. Helot Co wants to achieve a target profit margin of 35%.

The finance director has also begun collecting cost data for the new game and has projected the following:

Which of the following statements would the finance director have used to explain to Helot Co’s board what the benefits were of adopting a target costing approach so early in the game’s life-cycle?

(1) Costs will be split into material, system, and delivery and disposal categories for improved cost reduction analysis

(2) Customer requirements for quality, cost and timescales are more likely to be included in decisions on product development

(3) Its key concept is based on how to turn material into sales as quickly as possible in order to maximise net cash

(4) The company will focus on designing out costs prior to production, rather than cost control during live production

A.1, 2 and 4

B.2, 3 and 4

C.1 and 3

D.2 and 4 only

The following scenario relates to questions 6–10.

Corfe Co is a business which manufactures computer laptop batteries and it has developed a new battery which has a longer usage time than batteries currently available in laptops. The selling price of the battery is forecast to be $45.

The maximum production capacity of Corfe Co is 262,500 units. The company’s management accountant is currently preparing an annual flexible budget and has collected the following information so far:

In addition to the above costs, the management accountant estimates that for each increment of 50,000 units produced, one supervisor will need to be employed. A supervisor’s annual salary is $35,000.

The production manager does not understand why the flexible budgets have been produced as he has always used a fixed budget previously

Assuming the budgeted figures are correct, what would the flexed total production cost be if production is 80% of maximum capacity?

A.$2,735,000

B.$2,770,000

C.$2,885,000

D.$2,920,000

In the first month of production of the new battery, actual sales were 18,000 units and the sales revenue achieved was $702,000. The budgeted sales units were 17,300.

Based on this information, which of the following statements is true?

A.When the budget is flexed, the sales variance will include both the sales volume and sales price variances

B.When the budget is flexed, the sales variance will only include the sales volume variance

C.When the budget is flexed, the sales variance will only include the sales price variance

D.When the budget is flexed, the sales variance will include the sales mix and quantity variances and the sales price variance

Which of the following statements relating to the preparation of a flexible budget for the new battery are true?

(1) The budget could be time-consuming to produce as splitting out semi-variable costs may not be straightforward

(2) The range of output over which assumptions about how costs will behave could be difficult to determine

(3) The flexible budget will give managers more opportunity to include budgetary slack than a fixed budget

(4) The budget will encourage all activities and their value to the organisation to be reviewed and assessed

A.1 and 2 only

B.1, 2 and 3

C.1 and 4

D.2, 3 and 4

The management accountant intends to use a spreadsheet for the flexible budget in order to analyse performance of the new battery.

Which of the following statements are benefits regarding the use of spreadsheets for budgeting?

(1) The user can change input variables and a new version of the budget can be quickly produced

(2) Errors in a formula can be easily traced and data can be difficult to corrupt in a spreadsheet

(3) A spreadsheet can take account of qualitative factors to allow decisions to be fully evaluated

(4) Managers can carry out sensitivity analysis more easily on a budget model which is held in a spreadsheet

A.1, 3 and 4

B.1, 2 and 4

C.1 and 4 only

D.2 and 3

The management accountant has said that a machine maintenance cost was not included in the flexible budget but needs to be taken into account.

The new battery will be manufactured on a machine currently owned by Corfe Co which was previously used for a product which has now been discontinued. The management accountant estimates that every 1,000 units will take 14 hours to produce. The annual machine hours and maintenance costs for the machine for the last four years have been as follows:

What is the estimated maintenance cost if production of the battery is 80% of maximum capacity (to the nearest $’000)?

A.$575,000

B.$593,000

C.$500,000

D.$735,000

请帮忙给出每个问题的正确答案和分析，谢谢！

The following scenario relates to questions 1–5.

Mylo runs a cafeteria situated on the ground floor of a large corporate office block. Each of the five floors of the building are occupied and there are in total 1,240 employees.

Mylo sells lunches and snacks in the cafeteria. The lunch menu is freshly prepared each morning and Mylo has to decide how many meals to make each day. As the office block is located in the city centre, there are several other places situated around the building where staff can buy their lunch, so the level of demand for lunches in the cafeteria is uncertain.

Mylo has analysed daily sales over the previous six months and established four possible demand levels and their associated probabilities. He has produced the following payoff table to show the daily profits which could be earned from the lunch sales in the cafeteria:

If Mylo adopts a maximin approach to decision-making, which daily supply level will he choose?

A.450 lunches

B.620 lunches

C.775 lunches

D.960 lunches

If Mylo adopts a minimax regret approach to decision-making, which daily supply level will he choose?

A.450 lunches

B.620 lunches

C.775 lunches

D.960 lunches

The human resources department has offered to undertake some research to help Mylo to predict the number of employees who will require lunch in the cafeteria each day. This information will allow Mylo to prepare an accurate number of lunches each day.

What is the maximum amount which Mylo would be willing to pay for this information (to the nearest whole $)?

A.$191

B.$359

C.$478

D.$175

Which of the following statements is/are true if Mylo chooses to use expected values to assist in his decision-making regarding the number of lunches to be provided?

(1) Mylo would be considered to be taking a defensive and conservative approach to his decision

(2) Expected values will ignore any variability which could occur across the range of possible outcomes

(3) Expected values will not take into account the likelihood of the different outcomes occurring

(4) Expected values can be applied by Mylo as he is evaluating a decision which occurs many times over

A.1, 2 and 3

B.2 and 4

C.1 and 3 only

D.4 only

Mylo is now considering investing in a speciality coffee machine. He has estimated the following daily results for the new machine: Which of the following statements are true regarding the sensitivity of this investment?

(1) The investment is more sensitive to a change in sales volume than sales price

(2) If variable costs increase by 44% the investment will make a loss

(3) The investment’s sensitivity to incremental fixed costs is 550%

(4) The margin of safety is 84·6%

A.1, 2 and 3

B.2 and 4

C.1, 3 and 4

D.3 and 4 only

请帮忙给出每个问题的正确答案和分析，谢谢！

One of these techniques involves analysing costs under three distinct categories: material, system, and delivery and disposal.

What is this technique known as?

A.Activity-based costing

B.Life-cycle costing

C.Input-output analysis

D.Flow cost accounting

a unit of GX is as follows:

What was the materials yield variance for March?

A.$6,800 favourable

B.$6,800 adverse

C.$1,000 favourable

D.$1,000 adverse

o factors outside her control. She has submitted the following table along with notes from a market expert, which she believes explains the cause of the poor performance:

After adjusting for the external factors outside the manager’s control, in which category/categories is there evidence of poor performance?

A.Material cost only

B.Sales volume and sales price

C.Sales price and material cost

D.Sales price only

A jewellery company makes rings (R) and necklaces (N).

The resources available to the company have been analysed and two constraints have been identified:

Labour time 3R + 2N ≤ 2,400 hours

Machine time 0·5R + 0·4N ≤ 410 hours

The management accountant has used linear programming to determine that R = 500 and N = 400.

Which of the following is/are slack resources?

(1) Labour time available

(2) Machine time available

A.1 only

B.2 only

C.Both 1 and 2

D.Neither 1 nor 2

de and sold as that of product X. Each unit of product X makes a contribution of $10 and each unit of product Y makes a contribution of $4. Fixed costs are $90,000.

What is the total number of units which must be made and sold to make a profit of $45,000?

A.7,500

B.22,500

C.15,000

D.16,875