Question 3 a. Risk occurs where there are several possible outcomes which can be assigned the likelihood of occurring without knowing which will happen. Explain these types of risks b. Management uses Cost Volume Profit (CPV) analysis as a planning process to predict the future volume of activity, costs incurred, sales made and profit received. Required: i. List and explain FIVE assumptions in C-V-P analysis c. Discuss in detail Five benefits and drawbacks of throughput accounting.

When should alternative measurement bases supplement cost? Mcq 3 pts accounting

Question 16 LIMITATIONS OF NPV Identify the limitations of Net Present Value techniques when applied generally to investment appraisal

b. Which method should be selected using net present value analysis? O Method 1 O Method 2 ONeither of these

General Accounting 5.7

__________ considers the impact of changing one or more inputs or assumptions on the resulting answer (output) of an analysis. a.Sensitivity analysis b.Capital rationing c.Expected value analysis d.The net present value method

6

When should alternative measurement bases supplement cost?

(J)  Question 25 The ROI methodology is useful for evaluation and planning.  True  False

6 When should alternative measurement bases supplement cost? a. Historical cost tells whole story b. Value-relevant factors demand additional perspectives c. Alternatives create confusion d. Single measures work best

6 When should alternative measurement bases supplement cost? a. Historical cost tells whole story b. Value-relevant factors demand additional perspectives c. Alternatives create confusion d. Single measures work best Answer

a. Sharpe ratio b. Treynor ratio c. Information ratio d. Jensen’s alpha Discuss how to selecet the appropriate measures are for different clients needs (in which cases we selecet each of the above measurments)