1. VV makes two pies: the "Apple" Pie and the "Lemon" Pie.
Assume that the only constraint is the preparing process, with only 3,000 labour minutes available per day for preparation. VV should:
Select one:
A Make 400 Apple pies and 500 Lemon pies.
B Make 300 Apple pies and 375 Lemon pies.
C Make 400 Apple pies and 250 Lemon pies
D Make 200 Apple pies and 500 Lemon pies.
2. The constraint in a report writing business is the proof-reader. Sending the proof-reader to a speed reading course so that he can proof-read reports faster is an example of which of the following TOC steps?:
Select one:
A Identifying the constraint
B Exploiting the constraint
C Subordinating activities carried out by other workers in the business
D Elevating the constraint
3. Furtastic Ltd specialises in the production of baby seal fur hats. Three machines are used sequentially in the production of hats. The middle machine keeps breaking down, meaning that the third machine often has no inventory to work on. What type of constraint is Furtastic facing?
Select one:
A Supply constraint
B Managerial constraint
C Material constraint
D Demand constraint
4. An example of an internal, tangible constraint is:
Select one:
Worker reluctance to work overtime
Managerial policy prohibiting work on weekends
Unreliable supplier
None of the above
5. Given a choice, a manager should choose the product mix that
Select one:
A maximises throughput.
B maximises sales revenue.
C minimises non-unit-level costs.
D minimises inventory costs.
6. What is the quantitative decision rule for the net present value method?
Select one:
a. Accept investments whose return on investment exceeds the accounting rate of return.
b. Accept investments whose weighted average cost of capital exceeds the return on investment.
c. Accept investments whose required rate of return exceeds the internal rate of return.
d. Accept investments with a positive net present value.
7. One criterion that managers sometimes apply in ranking investment proposals is called the:
Select one:
a. profitability index
b. annuity index
c. investment opportunity index
d. capital ranking approach
8. The main concept of time value of money is:
Select one:
a. that cash flows received in the distant future are not as valuable as cash flows received in the near future
b. the recognition of all relevant costs in absolute dollars
c. that cash flows received in different years should be treated as equal
d. that cash payments made in the future have the same value today
9.If the incremental revenue increased by $1 million dollars, what would be the after-tax cash inflow (income tax rate of 28 per cent)?
Select one:
a. $400 000
b. $1 008 000
c. $980 000
d. $720 000
10.Projects with a zero or positive net present value (NPV) are accepted using the net present value method. Why is this so?
Select one:
a. Because a non-negative NPV ensures the company will be profitable.
b. Because the company will have the relevant cash flow to pay its debts as, and when, they fall due.
c. Because the return is at least equal to the cost of capital.
d. Because a non-negative NPV ensures the company will be profitable AND because the company will have the relevant cash flow to pay its debts as, and when, they fall due.
There are ten management accounting multiple choices. only solutions needed. but make sure at least eight of them are right. otherwise, I will not accept your answer. And Do not negotiate price with me because the price and deadline is quite sufficient!!