A company is investing in a huge diversification project. The plan is to develop and sell a whole new product line that they have never sold before. They ' ve already started a massive marketing campaign for this new

product line and they are getting good feedback in their market research.

They ' ve had to use debt funding in order to finance the project, but they hope that the returns will be worth the investment and restructuring. If they are successful they will be a step ahead of all their competitors and offer

something none of them can.

What is the risk appetite of this company?

Which TWO of the following are examples of management information made possible by the availability of big data?

A company is classifying its quality costs to prepare a quality cost report. Which of the following are conformance costs?

Select ALL that apply.

An organization wishes to achieve cost reductions for a product it already has in production without affecting the customer ' s perception of the product.

It has decided to carry out a systematic examination of the factors affecting the cost of the product in order to identify ways of achieving the specified purpose at lower cost while maintaining the required standard and quality.

Which of the following correctly identifies the activity that the organization is undertaking?

One aspect of life cycle costing is the recognition of the fact that during the design or development stage a large proportion of many products ' life cycle costs are:

You have just assessed an investment proposal, involving an immediate cash outflow followed by a series of cash inflows over the next 7years, by deducing the NPV and the IRR. You have now discovered that you have

underestimated the discount rate.

Correcting the underestimation will have the following effect, relative to your original deductions:

A company is considering two mutually exclusive projects, an analysis of which is given below:

The company ' s cost of capital is 12%.

Assuming an objective of maximising shareholders ' wealth, which project would be recommmended?

An electronics company sells a range of tablet computers. Tablet computers come complete with an operating system that is regarded as the market leader. The company aims to launch a new version of its hardware every eighteen months and a major update to its software every three years. The latest version of the tablet computer is always sold at a higher price, but the older version that has been replaced is then sold for a time at a discounted price.

Which pricing model does this company appear to be using?

Which TWO of the following conditions are necessary for a learning curve to apply?

A manufacturing company has recently introduced a Total Quality Management (TQM) system. The company has invested heavily in the education and training of its staff, in addition to implementing new product design engineering. There is a plan to sample units from each batch of products manufactured to test for errors, although this has not yet been implemented due to budget constraints.

The company is experiencing high levels of customer complaints, with many faulty units being returned by the customer for refund or replacement. Sales revenue has fallen recently, mainly due to negative press coverage linked to dissatisfied customers.

Select the statement MOST likely to apply.