During a Board meeting at a manufacturing company, concerns regarding the analysing of the current
inventory management systems and processes are brought up.
Attendees of the meeting have made several claims and suggestions but the managing director
admits that he does not know who to believe and so has asked you to let him know which
statements of the following statements are TRUE?
Select ALL that apply.
Endure Co. makes 1,000 units ofX and 2,000 units of Y.
Costs for X: Material $4, labour $8, direct overhead $2, fixed cost $4.
Costs for Y: Material $9, labour $9, direct overhead $4, fixed cost $6.
Selling price for X and Y are S19 and $25 respectively. Another company can sell ready made product
X and product Y's to Endure Co, this company sells X at $12 and Y at $21. Advise Endure Co. on what
most cost effective way to source products X and Y.
Which of the following are TRUE about the theory of constraints? Select ALL that apply.
A, C, D
The manager of Ice Sculpting Co. believes that too much material is being wasted during downtime.
She researched, and found throughput accounting to be an adequate alternative. However, she
she read was accurate.
Which of the following statements are TRUE when using Throughput Accounting? Select ALL that
A, C, D
We have 2 divisions with the following information: Profit before depreciation: B1=$800,000,
B2=S1,000,000; Assets: B1 =$2,000,000, B2=S3,000,000; Capital employed: B1 = $1,700,000 and B2 =
straight-line depreciation is used.
Calculate ROI for each division.
SkillWeave Industries are focused on managing the risk of selling their cars to the region due to
economic turmoil, and have now begun using funds from sales in the region to fund supplier
reduce the risk from the volatile currency. However, SkillWeave want to go a step further and make
the risk even less sizeable.
Which of the following is a method by which SkillWeave can operate in the market and transfer the
risk of exchange rate exposure to another party?
SkillWeave are an international clothing manufacturer known for their durable and high quality
products. Recently their biggest market in the world's premier customs union has had some
resulted in the currency of this market being very unstable and difficult to predict in terms of
whether it will retain, lose or gain relative value to domestic currency.
Which of the following is an effective risk reduction technique for SkillWeave's clothing sales to this
Which of the following statements is TRUE about the activity based costing system when compared
to absorption costing method?
You have just assessed an investment proposal, involving an immediate cash outflow followed by a
series of cash inflows over the next 7years, by deducing the NPV and the IRR. You have now
underestimated the discount rate.
Correcting the underestimation will have the following effect, relative to your original deductions:
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
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.
A, B, C