Edward sells two products with selling prices and contributions as follows:
Edwards’s fixed costs are $1,400,000 per year.
Edward now anticipates that more customers will buy the cheaper product G and that budgeted sales will be 150,000 units for each product.
If this happens what would happen to the breakeven revenue?
Because the C/S ratio of product G is lower than F the change in mix would reduce the average C/S ratio. As a consequence the BER would increase by an amount but not by the amount of extra sales of product G. This is not relevant.
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A government is trying to assess schools by using a range of financial and non-financial factors. One of the chosen methods is the percentage of students passing five exams or more.
Which of the three Es in the value for money framework is being measured here?
The following statements have been made about measuring performance in not-for-profit organisations:
(1) Output does not usually have a market value, and it is therefore more difficult to measure effectiveness.
(2) Control over the performance can only be satisfactorily achieved by assessments of ‘value for money’.
Which of the above statements is/are true?
The senior manager is suspicious of a local manager’s accounts and thinks that the profit performance may have been overstated.
Which of the following would be a plausible explanation of an overstatement of profit?
Which of the following statements regarding standard setting is correct?
When setting performance measurement targets it should be considered that there is the possibility that managers will take a short term view of the company and may even be tempted to manipulate results in order to achieve their targets.
Which of the following would assist in overcoming the problems of short-termism and manipulation of results?
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