QUESTION: 49

DRAG DROP (Drag and Drop is not supported)

A company classifies its main factory as an investment centre. Categorise each of the following costs as either controllable or uncontrollable by the investment centre manager.

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Answer(s): A

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QUESTION: 50

DRAG DROP (Drag and Drop is not supported)
Place each of the activities described below against the correct classification of quality costs.

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Answer(s): A

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QUESTION: 51

A public sector service organization is considering whether to use a balanced scorecard or a value for money approach based on the three Es to assess its performance.

Which of the following are correct comparisons of the balanced scorecard and value for money based on the three Es as performance measurement frameworks?

Select ALL that apply.

Efficiency is measured as one of the three Es but the balanced scorecard does not measure efficiency.
If the organization wishes to consider both financial and non-financial performance then the balanced scorecard should be used rather than the three Es.
The public's satisfaction with the organization's services can be measured by both the three Es and the balanced scorecard.
The balanced scorecard is concerned with meeting the organization's objectives whereas the three Es approach is concerned only with reducing costs.
The three Es approach was designed for public sector service organizations, but the balanced scorecard approach can also be used in the public sector.

Answer(s): C,E

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QUESTION: 52

A company has three divisions, each of which is an investment centre. The divisional managers' performance is assessed using return on investment (ROI). A higher ROI will result in a higher bonus for the divisional manager.

The company's cost of capital is 15%.
For the forthcoming year each divisional manager has one investment opportunity available as follows:

The manager(s) of which division(s) will proceed with their respective investment opportunity?

Division 1 and Division 3
Division 2 and Division 3
Division 3 only
Division 1 only

Answer(s): B

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QUESTION: 49

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QUESTION: 51

QUESTION: 52