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Advanced Management Accounting

Last Update Oct 21, 2024
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Advanced Management Accounting Questions and Answers

Questions 1

Place each performance measure against the correct perspective of the Balanced Scorecard for a company that operates a chain of hotels.

Options:

Questions 2

Place the correct quality cost classification against each cost described below.

Options:

Questions 3

A supermarket group has experienced operational problems during recent years, including a shortage of warehousing space due to increasing turnover and poor inventory management. The product portfolio has expanded considerably. Although this has led to increased sales volume, marketing and logistics costs have increased disproportionately. Non product-specific costs have also increased significantly.

Management is now considering using Direct Product Profitability (DPP).

Which of the following statements are valid in respect of the possible implementation of DPP within the supermarket group?

Select ALL that apply.

Options:

A.

DPP should result in improved management of storage space.

B.

DPP should result in improved supplier relationships.

C.

DPP should result in improved pricing decisions.

D.

DPP requires non product-specific costs to be apportioned rather than allocated.

E.

DPP provides summary information on the profitability of each customer group.

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