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Economics, Accounting & Business: Post your doubts here!

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for this question ( may/june 2012 paper 12) how do we know that we hav to use total capital employed ? o_Othe syllabus says capital employed is NPBI/Capital employed .... -_-
 
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thts easy
make a flexed budget for 1100 units
dm 2200
dl 550
f o/h 800
total 3550
3700-3550=150
oh yeah .. jazakallah (y) :D
Answer is D.
Capital employed formula is Non-Current Assets + Net-Current Assets.
do same year (may/june 2012 ppr 42 ) question 2)part d) for ROCE here they take only capital and do sm tng ... not Non-Current Assets + Net-Current Assets.... -_- in da marking schme they say 77.1% so it cant be that
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s12_qp_42.pdf
markscheme >
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s12_ms_42.pdf
David Hussey any idea bot wat the official ROCE formula is ?
 
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oh yeah .. jazakallah (y) :D

do same year (may/june 2012 ppr 42 ) question 2)part d) for ROCE here they take only capital and do sm tng ... not Non-Current Assets + Net-Current Assets.... -_- in da marking schme they say 77.1% so it cant be that
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s12_qp_42.pdf
markscheme >
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s12_ms_42.pdf
David Hussey any idea bot wat the official ROCE formula is ?
this is what the 2014 accounting syllabus had
Return on Capital Employed =
NPBI/capital employed × 100
[Capital Employed = Issued Shares + Reserves + Non-Current Liabilities]
 
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Q11) PED = 0 means it's perfectly in-elastic. Imposing a tariff would increase the overall cost to the consumer but there would be no change in the quantity demanded. Therefore C is the answer.

Q19) Find out the Opportunity cost ratios.
M
1X = 0.5Y
1Y = 2X Comparative advantage in Y

N
1X = 0.25Y Comparative advantage in X
1Y = 4Y

Rate is 1Y for 3X and it lies between their opportunity cost ratios so trade would be favourable.
A is the answer

Q27) D Because negative BOP means depreciating exchange rate while inflation would decrease because people would import less as the prices of imports would further rise due to depreciation of exchange rate.
 
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Q8) D Definition of cross elasticity of demand.

Q13) C and D are totally wrong. When price of compliment increases, the demand for that good falls so A cannot be right. B is the answer because price of substitute may have increased further therefore B is the answer.

Q30) C because when taxes increases, people are left with left money to consume.
 
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this is what the 2014 accounting syllabus had
Return on Capital Employed =
NPBI/capital employed × 100
[Capital Employed = Issued Shares + Reserves + Non-Current Liabilities]
i did check this ...but this is for limited company .. wat bot for Sole trader ?
 
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Q11) PED = 0 means it's perfectly in-elastic. Imposing a tariff would increase the overall cost to the consumer but there would be no change in the quantity demanded. Therefore C is the answer.

Q19) Find out the Opportunity cost ratios.
M
1X = 0.5Y
1Y = 2X Comparative advantage in Y

N
1X = 0.25Y Comparative advantage in X
1Y = 4Y

Rate is 1Y for 3X and it lies between their opportunity cost ratios so trade would be favourable.
A is the answer

Q27) D Because negative BOP means depreciating exchange rate while inflation would decrease because people would import less as the prices of imports would further rise due to depreciation of exchange rate.
Q8) D Definition of cross elasticity of demand.

Q13) C and D are totally wrong. When price of compliment increases, the demand for that good falls so A cannot be right. B is the answer because price of substitute may have increased further therefore B is the answer.

Q30) C because when taxes increases, people are left with left money to consume.

Thank you :)
 
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