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Advanced Management Accounting Questions 104–125 (page: 7)

An organization has the right to mine for gold on its land. The price of gold and the cost of extraction are such that mining is not currently financially viable. However, the organization has the right to commence mining at any time in the future if the price of gold increases and makes mining financially viable.

This right to commence mining in the future is an option to:

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?

In order to support decision making, management accounting information categorizes costs in a variety of ways.

Responsibility accounting primarily distinguishes between costs on the basis that they are either:

Company B, a video games developer, wants to use data to track the amount of traffic it receives on its social media pages. It specifically wants to find out the demographic it is most popular with on this platform, and

how it can branch out to different demographics through further advertising.

How best could the company use big data to expand its demographic reach?

Select ALL that apply.

DRAG DROP (Drag and Drop is not supported)

Place each performance measure against the correct perspective of the Balanced Scorecard for a company that operates a chain of hotels.