C Co uses material B, which has a current market price of $0·80 per kg. In a linear program, where the objective is to maximise profit, the shadow price of material B is $2 per kg. The following statements have been made:(i) Contribution will be increased

题目

C Co uses material B, which has a current market price of $0·80 per kg. In a linear program, where the objective is to maximise profit, the shadow price of material B is $2 per kg. The following statements have been made:

(i) Contribution will be increased by $2 for each additional kg of material B purchased at the current market price

(ii) The maximum price which should be paid for an additional kg of material B is $2

(iii) Contribution will be increased by $1·20 for each additional kg of material B purchased at the current market price

(iv) The maximum price which should be paid for an additional kg of material B is $2·80

Which of the above statements is/are correct?

A.(ii) only

B.(ii) and (iii)

C.(i) only

D.(i) and (iv)

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相似问题和答案

第1题：

M company is a manufactory which produces toys．The budgeted production and sales of the company are both expected to be 200 units in the coming year，the budgemd selling price is$370 per unit．The following information mimes to the costs of producin9 200 toys：

Per unit(＄)

Total(＄)

Direct material costs

l 50

30 000

Direct labor costs

1 6 000

Variable production overheads

1 0 000

Variable selling and administration overheads

6 000

Fixed production overheads

6 000

Fixed selling and administration overheads

3 000

Requirement：

A．Calculate the total contribution margin．

B．Calculate the amounts of profit at the budgeted level of production．

C．Calculate the break-even point in units and the margin of safety．

D．If M company desires a profit of$4 800，calculate the number of units that it must produce and sell．

正确答案：

A.Total contribution margin=370×200-(150+80+50+30) ×200=370×200-310×200

　　=12000

　　B.The amounts of profit at the budgeted level of production=12000-(6000+3000)=3000

　　C.Break-even point in units=(6000+3000)/(370-310)=150

　　The margin of safety=200-150=50

　　D.4800=(370-310) ×Q-9000

　　The number of units=(4800+9000)/(370-310)=230

第2题：

determine and discuss the likely effect of the proposed expansion on:

(i) the current share price of Merton plc;

(ii) the gearing of the company.

Assume that the price–earnings ratio of Merton plc remains unchanged at 12 times. (11 marks)

正确答案：
(c) Rights issue price = 2·45 x 0·8 = ￡1·96
Theoretical ex rights price = ((2 x 2·45) + (1 x 1·96))/3 = 6·86/3 = ￡2·29
New shares issued = 20m x 1/2 = 10 million
Funds raised = 1·96 x 10m = ￡19·6 million
After issue costs of ￡300,000 funds raised will be ￡19·3 million
Annual after-tax return generated by these funds = 19·3 x 0·09 = ￡1,737,000
New earnings of Merton plc = 1,737,000 + 4,500,000 = ￡6,237,000
New number of shares = 20m + 10m = 30 million
New earnings per share = 100 x 6,237,000/30,000,000 = 20·79 pence
New share price = 20·79 x 12 = ￡2·49
The weaknesses in this estimate are that the predicted return on investment of 9% may or may not be achieved: the priceearnings
ratio depends on the post investment share price, rather than the post investment share price depending on the
price-earnings ratio; the current earnings seem to be declining and this share price estimate assumes they remain constant;
in fact current earnings are likely to decline because the overdraft and annual interest are increasing but operating profit is
falling.
Expected gearing = 38/(60 + 19·3) = 47·9% compared to current gearing of 63%.
Including the overdraft, expected gearing = 46/(60 + 19·3) = 58% compared to 77%.
The gearing is predictably lower, but if the overdraft is included in the calculation the gearing of the company is still higher
than the sector average. The positive effect on financial risk could have a positive effect on the company’s share price, but
this is by no means certain.

第3题：

Which of the following control types has the highest risk to the owner:

A Firm fixed price (FFP)

B Time and material (T&M)

C Cost plus fixed fee (CPFF)

D Cost plus incentive fee (CPIF)

E A and B only

正确答案：B

第4题：

2 Ice-Time Ltd (ITL) manufactures a range of sports equipment used in a variety of winter-sports in Snowland.

Development engineers within ITL have recently developed a prototype of a small engine-propelled bobsleigh named

the ‘Snowballer’, which has been designed for use by young children. The directors of ITL recently spent ￡200,000

on market research, the findings of which led them to believe that a market exists for the Snowballer.

The marketing director has suggested that ITL should use the ‘Olympic’ brand in order to market the Snowballer.

The finance director of ITL has gathered relevant information and prepared the following evaluation relating to the

proposed manufacture and sale of the Snowballer.

(1) Sales are expected to be 3,200 units per annum at a selling price of ￡2,500 per unit.

(2) Variable material, labour, and overhead costs are estimated at ￡1,490 per unit.

(3) In addition, a royalty of ￡150 per unit would be payable to Olympic plc, for the use of their brand name.

(4) Fixed overheads are estimated at ￡900,000 per annum. These overheads cannot be avoided until the end of the

year in which the Snowballer is withdrawn from the market.

(5) An initial investment of ￡5 million would be required. A government grant equal to 50% of the initial investment

would be received on the date the investment is made. However, because the Snowballer would be classified as

a luxury good, no tax allowances would be available on this initial investment. The estimated life cycle of the

Snowballer is six years.

(6) Corporation tax at the rate of 30% per annum is payable in the year in which profit occurs.

(7) All cash flows are stated in current prices and, with the exception of the initial investment and the government

grant, will occur at the end of each year.

(8) The nominal cost of capital is 15·44%. Annual inflation during the period is expected to amount to 4%.

Required:

(a) Calculate the net present value (NPV) of the Snowballer proposal and recommend whether it should be

undertaken by the directors of ITL. (4 marks)

正确答案：

第5题：

4 Ryder, a public limited company, is reviewing certain events which have occurred since its year end of 31 October

2005. The financial statements were authorised on 12 December 2005. The following events are relevant to the

financial statements for the year ended 31 October 2005:

(i) Ryder has a good record of ordinary dividend payments and has adopted a recent strategy of increasing its

dividend per share annually. For the last three years the dividend per share has increased by 5% per annum.

On 20 November 2005, the board of directors proposed a dividend of 10c per share for the year ended

31 October 2005. The shareholders are expected to approve it at a meeting on 10 January 2006, and a

dividend amount of $20 million will be paid on 20 February 2006 having been provided for in the financial

statements at 31 October 2005. The directors feel that a provision should be made because a ‘valid expectation’

has been created through the company’s dividend record. (3 marks)

(ii) Ryder disposed of a wholly owned subsidiary, Krup, a public limited company, on 10 December 2005 and made

a loss of $9 million on the transaction in the group financial statements. As at 31 October 2005, Ryder had no

intention of selling the subsidiary which was material to the group. The directors of Ryder have stated that there

were no significant events which have occurred since 31 October 2005 which could have resulted in a reduction

in the value of Krup. The carrying value of the net assets and purchased goodwill of Krup at 31 October 2005

were $20 million and $12 million respectively. Krup had made a loss of $2 million in the period 1 November

2005 to 10 December 2005. (5 marks)

(iii) Ryder acquired a wholly owned subsidiary, Metalic, a public limited company, on 21 January 2004. The

consideration payable in respect of the acquisition of Metalic was 2 million ordinary shares of $1 of Ryder plus

a further 300,000 ordinary shares if the profit of Metalic exceeded $6 million for the year ended 31 October

2005. The profit for the year of Metalic was $7 million and the ordinary shares were issued on 12 November

2005. The annual profits of Metalic had averaged $7 million over the last few years and, therefore, Ryder had

included an estimate of the contingent consideration in the cost of the acquisition at 21 January 2004. The fair

value used for the ordinary shares of Ryder at this date including the contingent consideration was $10 per share.

The fair value of the ordinary shares on 12 November 2005 was $11 per share. Ryder also made a one for four

bonus issue on 13 November 2005 which was applicable to the contingent shares issued. The directors are

unsure of the impact of the above on earnings per share and the accounting for the acquisition. (7 marks)

(iv) The company acquired a property on 1 November 2004 which it intended to sell. The property was obtained

as a result of a default on a loan agreement by a third party and was valued at $20 million on that date for

accounting purposes which exactly offset the defaulted loan. The property is in a state of disrepair and Ryder

intends to complete the repairs before it sells the property. The repairs were completed on 30 November 2005.

The property was sold after costs for $27 million on 9 December 2005. The property was classified as ‘held for

sale’ at the year end under IFRS5 ‘Non-current Assets Held for Sale and Discontinued Operations’ but shown at

the net sale proceeds of $27 million. Property is depreciated at 5% per annum on the straight-line basis and no

depreciation has been charged in the year. (5 marks)

(v) The company granted share appreciation rights (SARs) to its employees on 1 November 2003 based on ten

million shares. The SARs provide employees at the date the rights are exercised with the right to receive cash

equal to the appreciation in the company’s share price since the grant date. The rights vested on 31 October

2005 and payment was made on schedule on 1 December 2005. The fair value of the SARs per share at

31 October 2004 was $6, at 31 October 2005 was $8 and at 1 December 2005 was $9. The company has

recognised a liability for the SARs as at 31 October 2004 based upon IFRS2 ‘Share-based Payment’ but the

liability was stated at the same amount at 31 October 2005. (5 marks)

Required:

Discuss the accounting treatment of the above events in the financial statements of the Ryder Group for the year

ended 31 October 2005, taking into account the implications of events occurring after the balance sheet date.

(The mark allocations are set out after each paragraph above.)

(25 marks)

正确答案：
4 (i) Proposed dividend
The dividend was proposed after the balance sheet date and the company, therefore, did not have a liability at the balance
sheet date. No provision for the dividend should be recognised. The approval by the directors and the shareholders are
enough to create a valid expectation that the payment will be made and give rise to an obligation. However, this occurred
after the current year end and, therefore, will be charged against the profits for the year ending 31 October 2006.
The existence of a good record of dividend payments and an established dividend policy does not create a valid expectation
or an obligation. However, the proposed dividend will be disclosed in the notes to the financial statements as the directors
approved it prior to the authorisation of the financial statements.
(ii) Disposal of subsidiary
It would appear that the loss on the sale of the subsidiary provides evidence that the value of the consolidated net assets of
the subsidiary was impaired at the year end as there has been no significant event since 31 October 2005 which would have
caused the reduction in the value of the subsidiary. The disposal loss provides evidence of the impairment and, therefore,
the value of the net assets and goodwill should be reduced by the loss of $9 million plus the loss ($2 million) to the date of
the disposal, i.e. $11 million. The sale provides evidence of a condition that must have existed at the balance sheet date
(IAS10). This amount will be charged to the income statement and written off goodwill of $12 million, leaving a balance of
$1 million on that account. The subsidiary’s assets are impaired because the carrying values are not recoverable. The net
assets and goodwill of Krup would form. a separate income generating unit as the subsidiary is being disposed of before the
financial statements are authorised. The recoverable amount will be the sale proceeds at the date of sale and represents the
value-in-use to the group. The impairment loss is effectively taking account of the ultimate loss on sale at an earlier point in
time. IFRS5, ‘Non-current assets held for sale and discontinued operations’, will not apply as the company had no intention
of selling the subsidiary at the year end. IAS10 would require disclosure of the disposal of the subsidiary as a non-adjusting
event after the balance sheet date.
(iii) Issue of ordinary shares
IAS33 ‘Earnings per share’ states that if there is a bonus issue after the year end but before the date of the approval of the
financial statements, then the earnings per share figure should be based on the new number of shares issued. Additionally
a company should disclose details of all material ordinary share transactions or potential transactions entered into after the
balance sheet date other than the bonus issue or similar events (IAS10/IAS33). The principle is that if there has been a
change in the number of shares in issue without a change in the resources of the company, then the earnings per share
calculation should be based on the new number of shares even though the number of shares used in the earnings per share
calculation will be inconsistent with the number shown in the balance sheet. The conditions relating to the share issue
(contingent) have been met by the end of the period. Although the shares were issued after the balance sheet date, the issue
of the shares was no longer contingent at 31 October 2005, and therefore the relevant shares will be included in the
computation of both basic and diluted EPS. Thus, in this case both the bonus issue and the contingent consideration issue
should be taken into account in the earnings per share calculation and disclosure made to that effect. Any subsequent change
in the estimate of the contingent consideration will be adjusted in the period when the revision is made in accordance with
IAS8.
Additionally IFRS3 ‘Business Combinations’ requires the fair value of all types of consideration to be reflected in the cost of
the acquisition. The contingent consideration should be included in the cost of the business combination at the acquisition
date if the adjustment is probable and can be measured reliably. In the case of Metalic, the contingent consideration has
been paid in the post-balance sheet period and the value of such consideration can be determined ($11 per share). Thus
an accurate calculation of the goodwill arising on the acquisition of Metalic can be made in the period to 31 October 2005.
Prior to the issue of the shares on 12 November 2005, a value of $10 per share would have been used to value the
contingent consideration. The payment of the contingent consideration was probable because the average profits of Metalic
averaged over $7 million for several years. At 31 October 2005 the value of the contingent shares would be included in a
separate category of equity until they were issued on 12 November 2005 when they would be transferred to the share capital
and share premium account. Goodwill will increase by 300,000 x ($11 – $10) i.e. $300,000.
(iv) Property
IFRS5 (paragraph 7) states that for a non-current asset to be classified as held for sale, the asset must be available for
immediate sale in its present condition subject to the usual selling terms, and its sale must be highly probable. The delay in
this case in the selling of the property would indicate that at 31 October 2005 the property was not available for sale. The
property was not to be made available for sale until the repairs were completed and thus could not have been available for
sale at the year end. If the criteria are met after the year end (in this case on 30 November 2005), then the non-current
asset should not be classified as held for sale in the previous financial statements. However, disclosure of the event should
be made if it meets the criteria before the financial statements are authorised (IFRS5 paragraph 12). Thus in this case,
disclosure should be made.
The property on the application of IFRS5 should have been carried at the lower of its carrying amount and fair value less
costs to sell. However, the company has simply used fair value less costs to sell as the basis of valuation and shown the
property at $27 million in the financial statements.
The carrying amount of the property would have been $20 million less depreciation $1 million, i.e. $19 million. Because
the property is not held for sale under IFRS5, then its classification in the balance sheet will change and the property will be
valued at $19 million. Thus the gain of $7 million on the wrong application of IFRS5 will be deducted from reserves, and
the property included in property, plant and equipment. Total equity will therefore be reduced by $8 million.
(v) Share appreciation rights
IFRS2 ‘Share-based payment’ (paragraph 30) requires a company to re-measure the fair value of a liability to pay cash-settled
share based payment transactions at each reporting date and the settlement date, until the liability is settled. An example of
such a transaction is share appreciation rights. Thus the company should recognise a liability of ($8 x 10 million shares),
i.e. $80 million at 31 October 2005, the vesting date. The liability recognised at 31 October 2005 was in fact based on the
share price at the previous year end and would have been shown at ($6 x 1/2) x 10 million shares, i.e. $30 million. This
liability at 31 October 2005 had not been changed since the previous year end by the company. The SARs vest over a twoyear
period and thus at 31 October 2004 there would be a weighting of the eventual cost by 1 year/2 years. Therefore, an
additional liability and expense of $50 million should be accounted for in the financial statements at 31 October 2005. The
SARs would be settled on 1 December 2005 at $9 x 10 million shares, i.e. $90 million. The increase in the value of the
SARs since the year end would not be accrued in the financial statements but charged to profit or loss in the year ended31 October 2006.

第6题：

For the year just ended，N company had an earnings of$2 per share and paid a dividend of $1．2 0n its Stock．The growth rate in net income and dividend are both expected to be a constant 7 percent per year,indefinitely．N company has a Beta of 0．8，the risk-free interest rate is 6 percent，and the market risk premium is 8 percent．

P Company is very similar to N company in growth rate，risk and dividend payout rati0．It had 20 million shares outstanding and an earnings of$36 million for the year just ended．

The earnings will increase to$38．5 million the next year．

Requirement：

A．Calculate the expected rate of return on N company’S equity．

B．Calculate N Company’S current price—eaming ratio and prospective price-earning rati0．

C．Using N company’S current price-earning rati0，value P company’S stock price．

D．Using N company’S prospective price-earning rati0，value P company’S stock price．

正确答案：

A.The expected rate of return on N company’s equity=6%+0.8×8%=12.4%

　　B.current price-earning ratio=(1.2/2) ×(1+7%)/(12.4%-7%)=11.89

　　Prospective price-earning ratio=(1.2/2)/(12.4%-7%)=11.11

　　C.P company’s stock=11.89×36/20=21.4

　　D.P company’s stock=11.11×36×(1+7%)/20=21.40

第7题：

18 Which of the following statements about accounting ratios and their interpretation are correct?

1 A low-geared company is more able to survive a downturn in profit than a highly-geared company.

2 If a company has a high price earnings ratio, this will often indicate that the market expects its profits to rise.

3 All companies should try to achieve a current ratio (current assets/current liabilities) of 2:1.

A 2 and 3 only

B 1 and 3 only

C 1 and 2 only

D All three statements are correct

正确答案：C

第8题：

132 Which of the following contract types has the highest risk to the contractor:

A. Firm fixed price (FFP)

B. Time and material (T&M)

C. Cost plus fixed fee (CPFF)

D. Cost plus incentive fee (CPIF)

E. A and B only

正确答案：A

第9题：

5 An enterprise has made a material change to an accounting policy in preparing its current financial statements.

Which of the following disclosures are required by IAS 8 Accounting policies, changes in accounting estimates

and errors in these financial statements?

1 The reasons for the change.

2 The amount of the consequent adjustment in the current period and in comparative information for prior periods.

3 An estimate of the effect of the change on future periods, where possible.

A 1 and 2 only

B 1 and 3 only

C 2 and 3 only

D All three items

正确答案：A

第10题：

(ii) Division C is considering a decision to lower its selling price to customers external to the group to $95

per kilogram. If implemented, this decision is expected to increase sales to external customers to

70,000 kilograms.

Required:

For BOTH the current selling price of CC of $105 per kilogram and the proposed selling price of $95

per kilogram, prepare a detailed analysis of revenue, costs and net profits of BAG.

Note: in addition, comment on other considerations that should be taken into account before this selling

price change is implemented. (6 marks)

正确答案：

C Co uses material B, which has a current market price of $0·80 per kg. In a linear program, where the objective is to maximise profit, the shadow price of material B is $2 per kg. The following statements have been made:(i) Contribution will be increased

题目

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