For a complex and repetitive task, which of the following correctly describes a steep learning curve?

• A.After the initial learning period there will be a slow reduction in the time taken to complete the task.
• B.Repeated training may be required but this will not necessarily result in a reduction in the time taken to complete the task.
• C.There will be a long period before there is a reduction in the time taken to complete the task.
• D.After the initial learning period there will be a rapid reduction in the time taken to complete the task.

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Oliver owns a computer repair company. He is looking to close of of his departments as the demand for computer cleaning has dropped dramatically in the last 2 years and is no longer profitable.
The contribution margin of the department is £12,000, and the overheads are £23,000 (out of which
£4,000 cannot be eliminated).
How would closing this department impact operating income?

• A.Decrease operating income by £7,000
• B.Increase operating income by £12,000
• C.Increase operating income by £7,000
• D.Decrease operating income by £12,000

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An organization is comprised of two divisions. One of the divisions manufactures a product that it sells both to an imperfect external market and to the other division.
The organization wishes to establish the most suitable basis for the transfer price for this product and is considering either a negotiated transfer price or a market-based transfer price.
Which of the following statements is correct?

• A.A negotiated transfer price could help to overcome the problem of establishing a single price for this external market.
• B.A market-based transfer price will ensure both divisional autonomy and goal congruence because part of the division's output is sold to the external market.
• C.A negotiated transfer price will always result in goal congruence whereas this is not always true when using a single market-based transfer price.
• D.A single market price for all of the division's output can be determined easily whereas a negotiated transfer price may result in protracted negotiations.

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When considering a capital investment, relevant costs for decision making have which THREE of the following features?

• A.They are cash flows.
• B.They are incremental costs.
• C.They are committed costs.
• D.They are unavoidable costs.
• E.They are future costs.

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An organization wants to increase the use value that customers place on one of its products - a laptop computer.
Which of the following actions, taken to increase the value to the customer, would increase the product's use value?
Select ALL that apply.

• A.Installing a touch screen to improve the computer's functionality.
• B.Fitting advanced components to improve the computer's performance.
• C.Launching a marketing campaign designed to build the company's brand.
• D.Adopting a premium pricing strategy for the computer.
• E.Changing the color of the computer's case.

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