We have 2 divisions with the following information: Profit before depreciation: B1=$800,000, B2=S1,000,000; Assets: B1 =$2,000,000, B2=S3,000,000; Capital employed: B1 = $1,700,000 and B2 =
$2,550,000. 20%
straight-line depreciation is used.
Calculate ROI for each division.

A company makes three products, E, F and G. Total overheads for the year are expected to be $1.2 million, with the following split between cost pools:
Cost driver information has been estimated as follows:

The company plans to make 10,000 units of product E in the year, with an expected direct cost of $0.60 per unit. This annual production of product E is expected to require 20 quality inspections, 28 purchase requisitions, and 400 kilogrammes of materials.
What is the overhead cost per unit of product E?

An organization is comprised of two divisions. One of the divisions manufactures a product that it sells both to an imperfect external market and to the other division.
The organization wishes to establish the most suitable basis for the transfer price for this product and is considering either a negotiated transfer price or a market-based transfer price.
Which of the following statements is correct?

Which of the following statements is TRUE about the activity based costing system when compared to absorption costing method?

To which technique for dealing with risk and uncertainty do ALL of the following statements apply?
* It requires that only one factor is considered at a time.
* It identifies areas which are crucial to a project, which can then be monitored if the project is chosen.
* It does not provide an indication of the likelihood of any change in the factors.
* Following the calculation, it requires the exercising of judgement to decide whether to accept or reject a project.