Question 41
A company is choosing between three projects, Project L, Project M and Project N using minimax regret.
The outcome from each project is dependent on competitor reaction. If this is passive returns will be L
$4,000, M $3,500 and N $5,200. If it is aggressive returns will be L $3,200, M $2,800 and N $2,950.
Place the tokens into the table to show the maximum regret for each project and whether the project would be undertaken using minimax regret.
The outcome from each project is dependent on competitor reaction. If this is passive returns will be L
$4,000, M $3,500 and N $5,200. If it is aggressive returns will be L $3,200, M $2,800 and N $2,950.
Place the tokens into the table to show the maximum regret for each project and whether the project would be undertaken using minimax regret.
Question 42
A company operates a standard costing system.
The company combines two raw materials in a process in order to produce a finished product. During month 6 the direct material mix variance was favourable and the direct material yield variance was adverse.
Which of the following statements would explain both of the variances?
The company combines two raw materials in a process in order to produce a finished product. During month 6 the direct material mix variance was favourable and the direct material yield variance was adverse.
Which of the following statements would explain both of the variances?
Question 43
A budgetary control report for the latest period is shown below:
Which TWO of the following statements are correct?
Which TWO of the following statements are correct?
Question 44
FGH used to manufacture components that required raw material Q.
Currently there are 80 kg of material Q in inventory.
The company has no use for the material in the foreseeable future and intends to sell it for scrap.
A potential new customer has asked for a price for a large order.
This order would require 100 kg of material Q.
The company management has decided to quote a price for this work on a relevant cost basis.
Details of costs for material Q are as follows:
What would be the relevant cost of Material Q to use in this order?
Currently there are 80 kg of material Q in inventory.
The company has no use for the material in the foreseeable future and intends to sell it for scrap.
A potential new customer has asked for a price for a large order.
This order would require 100 kg of material Q.
The company management has decided to quote a price for this work on a relevant cost basis.
Details of costs for material Q are as follows:
What would be the relevant cost of Material Q to use in this order?
Question 45
Which of the following would cause an adverse fixed overhead volume variance?