Thank you for taking the time to fill in this short questionnaire. Please answer each question to the best of your ability - if you are unsure of any of the answers please select "I'm not sure" rather than making a guess.
This questionnaire is completely confidential and no personal details are required. We look forward to receiving your results.
Please provide us with the following information about you and your company. This will allow us to produce a cross-industry analysis of the responses. The analysis will not identify any individual users.
The figure for electricity cost in the Profit and Loss Account represents which ONE of the following:
The bills received in the period The bills paid in the period The total electricity consumed in the period None of the above
I'm not sure
In the short run, other things being equal, which of the following would you expect to rise directly in proportion to an increase in number of units sold? Select all that apply.
Sales Variable costs Contribution Fixed costs Operating profit Tax
Which of the following are reasons why the figure for direct costs on the profit and loss account might differ from the figure for raw material purchases made in the same period? Select all that apply.
Direct costs may include labour as well as materials There was more raw material in stock at the beginning of the year than at the end The materials purchased have been converted to goods that have not yet been sold The goods are purchased on a sale or return basis
On 31 December 2001 the owners’ equity is recorded as £100 million, while on 31 December 2002 the owners’ equity is recorded as £120 million.
Based on this information, which of the following might be true? Select all that apply.
Shareholders have invested an extra £20 million in the business The company has increased its bank loans by £20 million There has been a profit of £20 million made and re-invested in the business The company has paid its shareholders a dividend of £20 million There has been a profit of £30 million made and a dividend of £10 million paid The liability the business has to the owners of the company has increased by £20 million
Which of the following are likely to have a favourable impact on cash flow? Select all that apply.
Reduce debtors Reduce creditors Reduce stocks Increase depreciation rates Increase spending on fixed assets
Your company produces rugs. The fixed costs in the business are £2,500 per month. For each rug: Material costs = £10, Labour = 2 hours @ £15 per hour Workers are paid by the hour and a wholesaler takes on average 300 rugs per month, paying £50 for each rug. Your wholesaler finds an additional market for your rugs. In order to produce additional rugs you will need to rent new machinery at an additional cost of £7,500 per month. This would also halve the labour needed to produce each rug. On average, how many MORE rugs does the wholesaler have to take each month in order to ensure that you are no worse off?
50 100 120 200 420 There is insufficient information to arrive at an answer.
One of your long-standing clients has a cash surplus and asks if you would be prepared to accept an immediate discounted payment on a £120,000 invoice due in a year’s time. Given that your cost of capital is 8%, what is the maximum percentage discount on the payment you should accept in order to receive payment now and not be financially worse off?
0.0% 7.4% 8.0% 9.6% 12.0%
In a simple business, 12,500 articles are produced and sold. Each article costs £30 to produce and is sold at £80. The marketing costs are £225,000 and the administration costs are £200,000. What is the profit margin ratio?
20.0% 40.0% 42.5% 77.5% 80.0%
Which of the following actions will improve Fixed Asset Turnover? Select all that apply.
Increase fixed assets, maintain production, maintain sales and maintain stock levels Decrease fixed assets, maintain production, maintain sales and maintain stock levels Maintain fixed assets, increase production, maintain sales and increase stock levels Maintain fixed assets, increase production, increase sales and maintain stock levels
If you were to rent, as opposed to purchase, a significant amount of your equipment, which of the following would you expect to increase? Select all that apply.
Asset turnover Operating profit Profit margin Return on capital employed
With which of the following would you agree? Select all that apply.
A Budget can provide a scale against which to measure an individual manager's performance A Budget gives all departments fixed equal resources so that relative expenditure can be compared A Budget allows top management to coordinate the activities of a company A Budget ensures that the company's expenditure will never exceed its income The Budget constrained by the limiting factor should be prepared last In zero-based budgeting, the budget figures are the actual figures from last year with no increment unless fully justified
