CAPE Accounting Unit 2 · 2015 · Paper 2 · Question 3(b)
List SIX reasons why you would recommend the use of a standard costing system.
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- 3(a)(i)Calculate the net book value (NBV) of Equipment Y183.[6 marks]
- 3(a)(ii)Compute the initial investment associated with the proposed replacement of Equipment Y183 with Equipment X154.[3 marks]
- 3(a)(iii)Compute the payback period for Equipment X154.[6 marks]
- 3(a)(iv)Compute the net present value for the proposed replacement of Equipment Y183 with Equipment X154.[8 marks]
- 3(a)(v)State whether Bernice Industries should purchase Equipment X154 and explain why.[2 marks]
- 3(c)State FOUR arguments against the use of budgeting as an accounting tool.[4 marks]
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