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The International Federation of Accountants (IFAC) stated that it was important that “accountants in business” should understand what the drivers of stakeholder value are. Which of the following statements is valid?

Options:

Anyone with an interest in an organisation can be considered to be one of its stakeholders.

Stakeholders must be external to the organisation.

Only an organisation’s shareholders and employees can be considered to be its stakeholders.

Only an organisation’s shareholders can be considered to be its stakeholders.

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Question 2

Which of the following is a relevant cost?

Options:

A sunk cost

A committed cost

An incremental cost

A historical cost

Question 3

Refer to the exhibit.

A project is forecast to generate the following cash flows.

Using three decimal places in all discount factors, the net present value (NPV) for the project at a cost of capital of 14.5% is (to the nearest $)

Options:

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Fundamentals of management accounting Questions and Answers

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