P2 무료 덤프문제 온라인 액세스

Oliver owns a computer repair company. He is looking to close of of his departments as the demand for computer cleaning has dropped dramatically in the last 2 years and is no longer profitable.
The contribution margin of the department is £12,000, and the overheads are £23,000 (out of which
£4,000 cannot be eliminated).
How would closing this department impact operating income?

• A.Decrease operating income by £12,000
• B.Decrease operating income by £7,000
• C.Increase operating income by £12,000
• D.Increase operating income by £7,000

The directors of a company wish to evaluate two mutually exclusive capital investment projects. Both projects have conventional cash flows: an initial outflow followed by a series of annual cash inflows.
The directors are aware of the following three investment appraisal methods: internal rate of return (IRR), net present value (NPV) and accounting rate of return (ARR).
The directors have asked for your advice about which method should be used to evaluate these two projects.
Which of the following is valid advice to give to the directors?

• A.ARR should be used because it is based on profit whereas both IRR and NPV are based on cash flows.
• B.IRR should be used because both NPV and ARR could lead to an incorrect investment decision.
• C.NPV should be used because it focuses on wealth creation whereas IRR and ARR are both relative measures.
• D.IRR should NOT be used because it could result in multiple IRRs.

A company is comprised of two divisions, each of which manufactures a single product. Division A manufactures a product which can be sold in a perfect external market or transferred as an intermediate product to division B. Division B finishes the intermediate product and sells this in a perfect external market.
Due to company policy, internal transfers are recorded at the external market price. At this transfer price both divisions make a profit from their activities.
Which of the following will NOT be achieved by the company's transfer pricing policy?

• A.Motivation of divisional managers to produce and sell as much as possible
• B.A fair basis for divisional performance evaluation
• C.Divisional autonomy
• D.Goal congruence

IOP's product is manufactured using a production process that is known to have a defect rate of 10%.
IOP's quality control department has developed a test that has a 98% probability of classifying a non- defective item correctly and a 2% probability of classifying a non-defective item as defective.
The same test has a 95% probability of classifying a defective item correctly and a 5% probability of classifying a defective item as non-defective.
Calculate the proportion of IOP's output that will be classified as non-defective by the quality control department's test.
Give your answer to one decimal place.

A company has a 31 December year end and pays corporation tax at a rate of 30%. Corporation tax is payable 12 months after the end of the year to which the cash flows relate. The company can claim tax allowable depreciation at a rate of 25% reducing balance. It pays $1 million for a machine on 31 December 20X4. The company's cost of capital is 10%.
What is the present value of the benefit of the first portion of tax allowable depreciation?

• A.$68,175
• B.$250,000
• C.$75,000
• D.$227,500