The following cost of quality report has been prepared for the latest period.
What is the difference between the cost of conformance and the cost of non-conformance?
One aspect of life cycle costing is the recognition of the fact that during the design or development stage a large proportion of many products' life cycle costs are:
Risk management can be represented as a four step process. The four steps, shown randomly, are:
1. Establish appropriate risk management policies.
2. Risks are identified by key stakeholders.
3. Risks are monitored on an ongoing basis.
4. Risks are evaluated according to the likelihood of occurrence and impact on the organization.
Which of the following is the correct order for the four steps?
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?
The performance report for the production manager of a company for the last month included the following.
1,000 direct labor hours were worked at a basic rate of pay of $10 per hour. 200 of these hours were worked during overtime for which a 30% overtime premium was paid. 80 of these overtime hours were to fulfill a customer order that had originally been planned for manufacture next month. The sales manager had agreed to bring forward the delivery of this order at the request of the customer. The remaining overtime hours were due to unexpected inefficiency of the workforce; this has been traced to poor supervision by a junior manager.
Material costs included the following:
What is the total value of the above costs that was controllable by the production manager?
A large supermarket is applying direct product profitability analysis to establish the profit earned by each of the products it sells.
Data for product P are as follows.
The shelf is stacked each time that all units are sold and there are no units of product P left unsold at the end of each day.
What is the direct product profit per unit of product P?
Give your answer to the nearest $0.01.
Product WB currently sells for $13 per unit. Annual demand at that price is 20,000 units. If the price increases to $15, the annual demand falls by 500 units.
What is the formula for the demand curve?
A not-for-profit organization measures performance using the three Es. If the organization has made optimum utilization of available resources then it should be described as:
A project requires an initial investment of $160,000 in an asset for which the annual depreciation charge will be $40,000. The forecast profits from the investment are as follows.
What is the payback period for the project in years? Give your answer to two decimal places.
TESTED 02 Feb 2025
