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(d) Explain the term ‘environmental management accounting’ and the benefits that may accrue to organisations
which adopt it. (4 marks)
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2 An important part of management is understanding the style. of leadership.Required:(a) Explain what Blake and Mouton’s Managerial Grid measures. (5 marks)
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(b) Explain the meaning of the term ‘Efficient Market Hypothesis’ and discuss the implications for a company ifthe stock market on which it is listed has been found to be semi-strong form. efficient. (9 marks)
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(d) Explain to the management of Bailey’s why consideration should be given to resolving the problems through:(i) job rotation; (5 marks)
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Explain the grounds upon which a person may be disqualified under the Company Directors Disqualification Act 1986.(10 marks)
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(b) Explain how the non-payment of contributions and the change in the pension benefits should be treated inthe financial statements of Savage for the year ended 31 October 2005. (4 marks)
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2 (a) Explain the term ‘backflush accounting’ and the circumstances in which its use would be appropriate.(6 marks)
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(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)
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(c) Identify TWO QUALITATIVE benefits that might arise as a consequence of the investment in a new IT systemand explain how you would attempt to assess them. (4 marks)
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(b) Explain how the use of SWOT analysis may be of assistance to the management of Diverse Holdings Plc.(3 marks)
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(d) Discuss the main benefits that might accrue from the successful implementation of a Total QualityManagement programme by the management of the combined entity. (5 marks)
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(b) Explain how the adoption of residual income (RI) using the annuity method of depreciation might prove tobe a superior basis for the management incentive plan operated by NCL plc.(N.B. No illustrative calculations should be incorporated into your explanation). (4 marks)
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5 A management accounting focus for performance management in an organisation may incorporate the following:(1) the determination and quantification of objectives and strategies(2) the measurement of the results of the strategies implemented and of the achievement of the results through anumber of determinants(3) the application of business change techniques, in the improvement of those determinants.Required:(a) Discuss the meaning and inter-relationship of the terms (shown in bold type) in the above statement. Youranswer should incorporate examples that may be used to illustrate each term in BOTH profit-seekingorganisations and not-for-profit organisations in order to highlight any differences between the two types oforganisation. (14 marks)
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(c) Explain the term ‘target costing’ and how it may be applied by GWCC. Briefly discuss any potentiallimitations in its application. (8 marks)
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(b) Briefly discuss how stakeholder groups (other than management and employees) may be rewarded for ‘good’performance. (4 marks)
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(b) Explain how growth may be assessed, and critically discuss the advantages and issues that might arise as aresult of a decision by the directors of CSG to pursue the objective of growth. (8 marks)
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In relation to the law of contract, distinguish between and explain the effect of:(a) a term and a mere representation; (3 marks)(b) express and implied terms, paying particular regard to the circumstances under which terms may be implied in contracts. (7 marks)
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6 Certain practices have developed that threaten to damage the integrity and objectivity of professional accountants andthe reputation of the accounting profession.Required:Explain the following practices and associated ethical risks and discuss whether current ethical guidance issufficient:(a) ‘lowballing’; (5 marks)
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(a) List and explain FOUR methods of selecting a sample of items to test from a population in accordance with ISA 530 (Redrafted) Audit Sampling and Other Means of Testing. (4 marks)(b) List and explain FOUR assertions from ISA 500 Audit Evidence that relate to the recording of classes oftransactions. (4 marks)(c) In terms of audit reports, explain the term ‘modified’. (2 marks)
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