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EXAMINATION PAPER: ACADEMIC SESSION 2007/2008 Campus School Department Course Code Course Title Level Duration Date Maritime Greenwich Business Accounting & Finance ACCO1114 Current Issues in Management Accounting 3 TWO HOURS & 15 Minutes May 2008

Course co-ordinator: Dr Julia Mundy INSTRUCTIONS TO CANDIDATES

Answer THREE questions only. All questions carry equal marks. This is a CLOSED book examination.

May 2008 Course Title Current Issues in Management Accounting Course Code ACCO1114

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APPROVED Question One (a) Describe the three main aspects of organisational architecture. (16 Marks)

(b) Discuss the major differences between the architectures of markets and firms. (17 Marks) (Total 33 marks) Question Two The IFAC have described a distinct change and expansion in the role of Management Accountants during the last century or so. Required: (a) Describe these changes and discuss why they have occurred.

(18 marks)

(b) Considering aspects of your answer in (a) discuss reasons for the seeming demise of the IFAC Conceptual Framework for Management Accountants. (15 marks) (Total 33 marks) Question Three Greenwich plc is a highly decentralised organization. Senior managers consider a range of techniques for appraising investment opportunities. The management accountants measure return on investment (ROI), net present value (NPV) and residual income (RI). Currently three projects are being considered. All projects are ranked according to the different techniques before a final decision to accept or reject each project is made. Project details: Project Investment Residual value Length of project (years) A B £550,000 £600,000 £50,000 £50,000 5 5 C £500,000 £50,000 5

Project Year 1 Year 2 Year 3 Year 4 Year 5

A £185,000 £170,000 £153,000 £153,000 £153,000

Cash flows B £100,000 £420,000 £220,000 £50,000 £30,000

C £80,000 £100,000 £100,000 £200,000 £380,000

May 2008 Course Title Current Issues in Management...