(b) Briefly explain THREE limitations of negotiated transfer prices. (3 marks)

(b) Briefly explain THREE limitations of negotiated transfer prices. (3 marks)


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(b) Briefly describe the five extreme scores identified by Blake and Mouton. (5 marks)

(b) Briefly describe the way in which a ‘person specification’ differs from a ‘job description’. (3 marks)

(c) To correct the problems at Flavours Fine Foods, explain to Alan Jones:(i) the need for delegation; (3 marks)

(c) Briefly describe three advantages to Bailey’s of counselling. (3 marks)

6 Communication is important for all organisations and requires an understanding of communication flows and channels.Required:(a) Briefly explain the main purposes of the three main formal communication channels in an organisation:(i) Downwards; (3 marks)

(b) Briefly explain the two types of informal communication known as the grapevine and rumour. (6 marks)

(b) Discuss the limitations of the above estimates. (6 marks)

(b) Ratio analysis in general can be useful in comparing the performance of two companies, but it has its limitations.Required:State and briefly explain three factors which can cause accounting ratios to be misleading when used forsuch comparison. (6 marks)

(b) Explain Kohlberg’s three levels of moral development and identify the levels of moral developmentdemonstrated by the contributions of Gary Howells, Vanda Monroe and Martin Chan. (12 marks)

(b) Identify and explain THREE approaches that the directors of Moffat Ltd might apply in assessing theQUALITATIVE benefits of the proposed investment in a new IT system. (6 marks)

(b) Explain how the use of SWOT analysis may be of assistance to the management of Diverse Holdings Plc.(3 marks)

(ii) Explain THREE strategies that might be adopted in order to improve the future prospects of DiverseHoldings Plc. (6 marks)

(ii) Comment briefly on the use of its own tree plantations as a source of raw materials by Our Timbers Ltd.(3 marks)

(c) Explain the term ‘target costing’ and how it may be applied by GWCC. Briefly discuss any potentiallimitations in its application. (8 marks)

(ii) Briefly explain the extent to which the application of sensitivity analysis might be useful in decidingwhich refrigeration system to purchase and discuss the limitations inherent in its use. (3 marks)

(b) Explain THREE problems in undertaking a performance comparison of GBC and TTC and also explain THREEitems of additional information that would be of assistance in assessing the operating and financialperformance of GBC and TTC. (6 marks)

(ii) Briefly discuss THREE disadvantages of using EVA? in the measurement of financial performance.(3 marks)

6 (a) Explain the term ‘money laundering’. (3 marks)

(d) Briefly describe the principal audit work to be performed in respect of the carrying amount of the followingitems in the balance sheet:(i) trade receivables; and (3 marks)

(c) Briefly describe the principal audit work to be performed in respect of the carrying amount of the followingitems in the balance sheet:(i) development expenditure on the Fox model; (3 marks)

In relation to company law, explain:(a) the limitations on the use of company names; (4 marks)(b) the tort of ‘passing off’; (4 marks)(c) the role of the company names adjudicators under the Companies Act 2006. (2 marks)

(ii) Briefly explain the implications of Parr Co’s audit opinion for your audit opinion on the consolidatedfinancial statements of Cleeves Co for the year ended 30 September 2006. (3 marks)

(ii) Can we entertain our clients as a gesture of goodwill or is corporate hospitality ruled out? (3 marks)Required:For EACH of the three FAQs, explain the threats to objectivity that may arise and the safeguards that shouldbe available to manage them to an acceptable level.NOTE: The mark allocation is shown against each of the three questions.

(iii) Can audit teams cross sell services to their clients? (4 marks)Required:For EACH of the three FAQs, explain the threats to objectivity that may arise and the safeguards that shouldbe available to manage them to an acceptable level.NOTE: The mark allocation is shown against each of the three questions.

(ii) If a partner, who is an actuary, provides valuation services to an audit client, can we continue with the audit?(3 marks)Required:For each of the three questions, explain the threats to objectivity that may arise and the safeguards thatshould be available to manage them to an acceptable level.NOTE: The mark allocation is shown against each of the three questions above.

(iii) Can internal audit services be undertaken for an audit client? (4 marks)Required:For each of the three questions, explain the threats to objectivity that may arise and the safeguards thatshould be available to manage them to an acceptable level.NOTE: The mark allocation is shown against each of the three questions above.

A TCP/IP Transfer is diagrammed in the exhibit.A window size of three has been negotiated for this transfer. Which message will be returned from the receiver to the sender as part of this TCP/IP transfer?()A.Send ACK 1-3B.Send ACK 3C.Send ACK 4D.Send ACK 4-6E.Send ACK 6F.Send ACK 7