Advance Level Credit: NCC Bank Limited Manufacturing Cost

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Questions and Answers

What is the total cost of goods sold in 2019?

  • 40,000
  • 1072,000 (correct)
  • 1112,000
  • 1325,000

What is the raw materials used in 2018?

  • 419,000
  • 612,000 (correct)
  • 575,000
  • 598,000

What is the cost of goods manufactured in 2017?

  • 954,000 (correct)
  • 965,000
  • 1005,000
  • 51,000

What is the closing stock of finished goods in 2019?

<p>40,000 (B), 40,000 (C)</p> Signup and view all the answers

What is the opening stock of work-in-process in 2017?

<p>22,000 (B)</p> Signup and view all the answers

What are the five competitive forces that create competitive pressure on a company?

<p>Bargaining power of suppliers, bargaining power of buyers, competitive threat from potential entrants, rivalry among competitors, and competitive threat from substitute products (B)</p> Signup and view all the answers

What is the main purpose of financial appraisal?

<p>To evaluate the financial viability of a project (D)</p> Signup and view all the answers

What is the goal of SWOT analysis?

<p>To match a company's strategy to its resource strengths and weaknesses, and market opportunities and external threats (A)</p> Signup and view all the answers

What is the purpose of company analysis?

<p>To analyze the company's strengths, weaknesses, opportunities, and threats using SWOT analysis (D)</p> Signup and view all the answers

What is the role of Porter's Five Forces in company analysis?

<p>To determine the company's competitive position and create competitive pressure (D)</p> Signup and view all the answers

What is one of the key objectives of marketing analysis?

<p>To estimate the future demand of the product (C)</p> Signup and view all the answers

What is the main objective of industry analysis?

<p>To identify the main sources of competitive forces (C)</p> Signup and view all the answers

What is used to assess the strength of competitive forces?

<p>Porter's five forces model (D)</p> Signup and view all the answers

What is analyzed in a company's external or macro-environment?

<p>Industry and competitive conditions (C)</p> Signup and view all the answers

What is important to determine in consumer behavior?

<p>Attitudes, intentions, and preferences (B)</p> Signup and view all the answers

What is the formula for Gross Margin?

<p>(GP / Sales) × 100 % (A)</p> Signup and view all the answers

What is the general rule of thumb for the Gross Margin ratio?

<p>Higher is better (A)</p> Signup and view all the answers

What is the formula for the Operating Profit Margin ratio?

<p>(EBITDA / Sales) × 100 % (A)</p> Signup and view all the answers

What does the Net Margin ratio measure?

<p>The profitability of a company's sales (C)</p> Signup and view all the answers

What is the general rule of thumb for the Operating Margin ratio?

<p>Higher is better (D)</p> Signup and view all the answers

What is the purpose of choosing a lower discount rate (LDR) and a higher discount rate (HDR) in the calculation of IRR?

<p>To solve for the IRR using the interpolation method (D)</p> Signup and view all the answers

What is the decision criterion if the IRR is equal to the cost of capital (k)?

<p>The firm would be indifferent to the project (D)</p> Signup and view all the answers

What is the value of the NPV when the discount rate is 12%?

<p>0 (B)</p> Signup and view all the answers

What is the formula to calculate the IRR using the interpolation method?

<p>IRR = LDR + NPV @ LDR × (HDR - LDR) / (NPV @ LDR - NPV @ HDR) (C)</p> Signup and view all the answers

What happens if the IRR is greater than the cost of capital (k)?

<p>The project is accepted (C)</p> Signup and view all the answers

What is the minimum IRR for a project to be acceptable?

<p>Greater than the firm’s cost of capital (D)</p> Signup and view all the answers

What is the cost of the new milling machine?

<p>Tk.6,00,000 (C)</p> Signup and view all the answers

What is the expected earnings before depreciation and taxes per year?

<p>Tk.2,00,000 (B)</p> Signup and view all the answers

What is the proposed tax rate after the change in tax law?

<p>40% (B)</p> Signup and view all the answers

What is the cost of capital for Khaleque?

<p>12% (D)</p> Signup and view all the answers

What is the cost of the new machine in Case-2?

<p>Tk.40,000 (A)</p> Signup and view all the answers

How much will the new machine reduce labor costs by per year?

<p>Tk.8,000 (C)</p> Signup and view all the answers

What is the required after-tax return on investment for the plastic manufacturing company?

<p>10% (D)</p> Signup and view all the answers

What is the tax rate of the plastic manufacturing company?

<p>55% (D)</p> Signup and view all the answers

What is the depreciation method used for the new machine in Case-2?

<p>Straight-line method (C)</p> Signup and view all the answers

What was the total cost of raw materials used in 2019?

<p>615,000 (C)</p> Signup and view all the answers

What was the total manufacturing cost in 2018?

<p>419,000 (D)</p> Signup and view all the answers

What was the cost of godown rent in 2019?

<p>2,000 (D)</p> Signup and view all the answers

What was the total cost of raw materials used in 2017?

<p>634,000 (C)</p> Signup and view all the answers

What was the depreciation cost in 2019?

<p>10,000 (B)</p> Signup and view all the answers

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Credit Manual Advance Level (PDF)

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