ACCA PM — Performance Management Practice Exam 2

Section A

AgriData is a modern agricultural cooperative that uses drone imagery and soil sensors to optimize crop yields. The management accountant wants to use this Big Data to predict future fertilizer costs based on micro-climate forecasts.

Which of the following characteristics of Big Data is the management accountant primarily leveraging for this specific predictive task?

Section A

NeuroTech is a startup developing a new brain-computer interface headset. The estimated selling price is $850. The company requires a profit margin of 30% on the selling price. The current estimated cost to produce one headset is $640.

What is the target cost gap per headset? (Enter your answer as a whole number, without the $ sign).

Section A

GlobalRelief, an NGO, distributes two types of emergency kits: Standard and Medical. The limiting factor is the specialized labor hours required to pack them. The shadow price of one specialized labor hour has been calculated as $15.

What does this shadow price of $15 represent?

Section A

CloudServe, an IT consultancy firm, is considering abandoning traditional annual budgeting in favor of a 'Beyond Budgeting' approach due to the rapidly changing tech landscape.

Which TWO of the following are core principles of the Beyond Budgeting model?

Section A

MetroWater, a public utility company, evaluates its regional divisions using Return on Investment (ROI). The Northern Division currently has an ROI of 18%. The company's cost of capital is 12%. The Northern Division manager is considering a new water purification project that will yield an ROI of 15%.

How will the manager's decision regarding the new project differ if evaluated on ROI versus Residual Income (RI)?