The cost of activities in value chain analysis is determined by key cost drivers.
False
Pytanie 42
The four main capital
investment appraisal
techniques are payback period, accounting rate of
return, net present value and
internal rate of return.
True
Pytanie 43
The two main branches of management accounting are cost accounting and decision making.
True
Pytanie 44
Total absorption costing is where all the overheads incurred by a company are recovered in the valuation of stock.
False
Pytanie 45
Fixed costs are those that do
not vary with long-term
changes in the level of sales
or production.
True
Pytanie 46
Shareholders, analyst
advisers and Customers are examples of internal external users of accountant.
True
Pytanie 47
Discounted cash flow discounts the future
expected cash flows of a
project back to their present-
day monetary values.
True
Pytanie 48
SWOT analysis stands for strengths, weaknesses,
opportunities and threats.
True
Pytanie 49
The product portfolio matrix consists of dogs, question
True
Pytanie 50
Net present value and the internal rate of return use discounted cash flows
True
Pytanie 51
In stock valuation, marginal costing is normally used in valuing stock in financial reporting.
False
Pytanie 52
The direct materials price variance is: (standard price per unit of material minus actual price per unit of material) multiplied by actual quantity of materials used.
False
Pytanie 53
The four main aspects of budgets are planning, coordinating, control and motivation.
False
Pytanie 54
Shareholders, analyst
advisers and Customers are examples of internal external users of accountant.
True
Pytanie 55
Flexing the budget means
adjusting the budget to take
into account the actual prices incurred.
False
Pytanie 56
Accountants perform other roles such as e.g.: auditing,
bookkeeping, financial
accounting, management accounting.
True
Pytanie 57
Benchmarking measures a business against its competitors.
True
Pytanie 58
Contribution/sales ratio is
profit divided by sales.
False
Pytanie 59
Spending to budget, padding the budget and creative budgeting are all common behavioral responses to budgeting.
True
Pytanie 60
The product portfolio matrix consists of dogs, question marks, stars and cash balls.
True
Pytanie 61
The discount rate normally used for discounting cash flows is the company's weighted average cost of capital.
False
Pytanie 62
The commonest limiting factor on the budgeting process is production.
True
Pytanie 63
We identify activity cost drivers in activity-based costing.
True
Pytanie 64
Non-financial items are not
important in decision makiing
False
Pytanie 65
In batch costing if we had
100 units that were 50%
complete this would equal 50
equivalent units.