QUESTION: 89

You are the Management Accountant for a company which supplies baked food to a string of retail outlets; biscuits, cakes, savoury snacks etc.
You discover that a trainee employee, who is responsible for cleaning out the delivery vans has been taking damaged goods and packets which have reached their sales expiry date and has been selling them to friends. These products would otherwise have been discarded as waste. The trainee in question is the nephew of one of the senior managers.
What is the correct course of action?

Have a quiet word with the trainee and ask him to stop.
Have a quiet word with the senior manager, the trainee's relative and ask them to deal with it.
Document the facts and escalate to the trainee's manager.
Do nothing, the product was designated as waste anyway.

Answer(s): C

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QUESTION: 90

SC is a professional football club which is currently listed on a recognised stock exchange. There is a proposal that it builds a new stadium at a location a considerable distance from its current stadium. There is strong support within the club for the move as the current ground is now over 40 years old and has not been extensively modernised in that time.
However, there is a lot of opposition to the move in the area where it is proposed to locate the new stadium. Objectors claim that the new stadium will increase traffic and pollution in the area and will adversely affect the value of their properties.
Which of the following statements about the responsibility of the board of SC is correct?

SC is now a listed company and so the board should prioritise the interests of shareholders to the exclusion of other stakeholders.
A football club needs to be part of the community in which it exists and so the board should consider the other stakeholders.
The board should conclude that objectors to the new stadium have a legal course of action open to them and if they do not take legal action they should ignore them.
If the board of directors is seen as acknowledging its responsibility to stakeholders other than shareholders this will enhance the reputation of the club and it will be more likely that a compromise can be reached with objectors.
The board should share information about the new development with the local community only to the extent that it is legally obliged to do so.

Answer(s): B,D

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QUESTION: 91

DFG is the largest bridge-building company in its home country, H. DFG works exclusively for the government of country H and the government awards DFG 80% of the contracts to build new bridges.

DFG's directors are considering using the big data approach to identify opportunities to increase sales revenues and profit.
Which of the following statements are true?

Big data has the potential to identify ways in which DFG can reduce construction costs.
DFG should supplement its existing databases in order to enhance the benefit from big data.
The big data approach may help DFG to price contract bids more accurately.
Big data has the potential to identify ways in which DFG can increase sales.
It would be unethical for DFG to use big data in order to compete even more effectively with its rivals.

Answer(s): A,B,C

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QUESTION: 92

Achieving the budget is often used as a good performance measure. However, there are problems with budgets which may mean they are not always good measures of performance. Which TWO of the following statements about budgets suggest that they should not always be used to measure performance?

Budgets may deliberately be set too low by managers so they are easily achieved and make the manager look good.
Budgets are a commitment. They therefore act as a constraint on doing anything different.
Budgets can be used to motivate staff if they are set correctly.
Budgets can give people goals to achieve and if everyone strives to achieve these goals the whole organisation will benefit.

Answer(s): A,B

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QUESTION: 89

QUESTION: 90

QUESTION: 91

QUESTION: 92

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