篩選結(jié)果 共找出525題

This question appeared in the June 2015 exam.?

At the start of the year, a division has non-current assets of $4 million and makes no additions or?disposals during the year. Depreciation is charged at a rate of 10% per annum on all non-current?assets held at the end of the year. Working capital is $0.5 million at the start of the year although?this is expected to increase by 20% by the end of the year. The budgeted profit of the division after?depreciation is $1.2 million.?

What is the expected ROI of the division for the year, based on average capital employed??

A

27.59%?

B

26.37%?

C

18.39%?

D

31.58%?

?This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version?of the exam they are taking.?

Summary financial statements are given below for JE, the division of a large divisionalised?company:?


The cost of capital for the division is estimated at 11% each year. The annual rate of interest?on the long-term loans is 9%. All decisions concerning the division’s capital structure are?taken by central management.?

What is the divisional return on capital employed (ROCE) for the year ended?31 December??

This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version?of the exam they are taking.?

Pro is a division of Mo and is an investment centre.? The head office controls finance, HR?and IT expenditure but all other decisions are devolved to the local centres.?

The statement of financial position for Pro shows net value of all assets and liabilities to be?$4,500m.? It carries no debt itself although the group has debt liabilities.?

The management accounts for income read as follows:??

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? $m??

Revenue? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 3,500??

Cost of sales? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 1,800?

Local administration? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 250

IT costs? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?50?

Distribution? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ??80?

Central administration? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 30?

Interest charges? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?90?

Net profit? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?1,200?

Ignore taxation.?

If the cost of capital is 12%, what is the division’s residual income???

?This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version?of the exam they are taking.?

Pro is a division of Mo and is an investment centre.? The head office controls finance, HR?and IT expenditure but all other decisions are devolved to the local centres.?

The statement of financial position for Pro shows net value of all assets and liabilities to be?$4,500m at the start of the year and $4,890m at the end.? It carries no debt itself although?the group has debt liabilities.?

The management accounts for income read as follows:??

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? $m??

Revenue? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?3,500??

Cost of sales? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 1,800?

Local administration? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 250?

IT costs? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?50?

Distribution? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 80?

Central administration? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 30?

Interest charges? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?90?

Net profit? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?1,200?

Ignore taxation.?

?What is the divisional ROI to the nearest % point??

?This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version?of the exam they are taking.?

At the end of 20X1, an investment centre has net assets of $1m and annual operating?profits of $190,000. However, the bookkeeper forgot to account for the following:?

A machine with a net book value of $40,000 was sold at the start of the year for $50,000,?and replaced with a machine costing $250,000. Both the purchase and sale are cash?transactions. No depreciation is charged in the year of purchase or disposal. The investment?centre calculates return on investment (ROI) based on closing net assets.?

Assuming no other changes to profit or net assets, what is the return on investment (ROI)?for the year?

?This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version?of the exam they are taking.?

TM plc makes components which it sells internally to its subsidiary RM Ltd, as well as to its?own external market.?

The external market price is $24.00 per unit, which yields a contribution of 40% of sales. For?external sales, variable costs include $1.50 per unit for distribution costs, which are not?incurred on internal sales.?

TM plc has sufficient capacity to meet all of the internal and external sales. The objective is?to maximise group profit.

?At what unit price should the component be transferred to RM Ltd??

A division with capital employed of $400,000 currently earns an ROI of 22%. It can make an additional?investment of $50,000 for a five year life with nil residual value. The average net profit from this?investment would be $12,000 after depreciation. The division's cost of capital is 14%.?

What are the residual incomes before and after the investment??

The transfer pricing system operated by a divisional company has the potential to make a significant?contribution towards the achievement of corporate financial objectives.?

Required?

Explain the potential benefits of operating a transfer pricing system within a divisionalised company.?

Choose the correct words from those highlighted.?

ROI based on profits as a % of net assets employed will (a) increase/decrease as an asset gets older and?its book value (b) increases/reduces. This could therefore create an (c) incentive/disincentive to?investment centre managers to reinvest in new or replacement assets.?

An investment centre with capital employed of $570,000 is budgeted to earn a profit of $119,700 next?year. A proposed fixed asset investment of $50,000, not included in the budget at present, will earn a?profit next year of $8,500 after depreciation. The company's cost of capital is 15%. What is the budgeted?ROI and residual income for next year, both with and without the investment???

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?ROI? ? ? ? ? ? ? ? ? ? ? ? ?Residual income

? ?Without investment? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ………………..? ? ? ? ? ? ? ? ? ?………………..?

? ?With investment? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ………………..? ? ? ? ? ? ? ? ? ?………………..?