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Management level ds on the il u b 2 P , m r n the long te o y il r a m P1) to o r im r (f p s r g e in iv s r u d c Fo osts and their c t u se, plan and o b ly a a n ts a h to d insig e d e etencies nee p m o c e ntation of th e th m e le p im provid e support th age and to n a ts s m o c to e w g a o h n ma gy. It shows te a tr s ’s n o ti s units of the u io r a v f organisa o e c erforman budgets and m r te tr control the p o h s e with both n li in investment n s o r ti e a v o c 2 P , organis h tegy. Finally a tr s m ted with suc r e ia c -t o g s s a lon s k is g and the r g deeper in in k p a lo m e v n e io d is r c de es the basis fo id v o r ecting the p ff a It . k s is n r f io o is s c e de f various typ o g (covered in in d s n n o ta ti s r a is n a unde g rations of or e p o d n a y g strate P3).

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Question No:1 An electronics company sells a range of tablet computers. Tablet computers come complete with an operating system that is regarded as the market leader. The company aims to launch a new version of its hardware every eighteen months and a major update to its software every three years. The latest version of the tablet computer is always sold at a higher price, but the older version that has been replaced is then sold for a time at a discounted price. Which pricing model does this company appear to be using? A. Penetration and loss leader pricing B. Penetration and product bundling C. Skimming and loss leader pricing D. Skimming and product bundling Answer: D

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Question No:2 A company is classifying its quality costs to prepare a quality cost report. Which of the following are conformance costs? Select ALL that apply. A. Internal Failure Costs B. External Failure Costs C. Prevention Costs D. Appraisal Costs Answer: C, D

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Question No:3 To which technique for dealing with risk and uncertainty do ALL of the following statements apply? • It requires that only one factor is considered at a time. • It identifies areas which are crucial to a project, which can then be monitored if the project is chosen. • It does not provide an indication of the likelihood of any change in the factors. • Following the calculation, it requires the exercising of judgement to decide whether to accept or reject a project. A. Sensitivity analysis B. Probability analysis C. Scenario analysis D. Adjusting the discount rate to reflect risk. Answer: A

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Question No:4 In short-term decision making, which TWO of the following are relevant costs? A. Opportunity costs  B. Sunk costs  C. Committed costs  D. Avoidable costs  E. Notional costs  Answer: D, A 

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Question No:5 Performance measures that monitor the extent to which a notfor-profit organization's objectives have been achieved are measures of: A. Economy B. Efficiency C. Effectiveness D. Enterprise Answer: C

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