（ii) Suggest THREE other performance measures （not applied in （i)) which might be used to

Some studies suggest that cutting salt protects the heart; others suggest that intense salt reduction can actually increase heart problems

(ii) Briefly discuss THREE disadvantages of using EVA？ in the measurement of financial performance.

(3 marks)

(ii) Explain THREE strategies that might be adopted in order to improve the future prospects of Diverse

Holdings Plc. (6 marks)

A.A spiritual union of the two lovers.

B.A physical union of the two lovers.

C.A sweet memory of the two lovers.

D.A happy moment of the two lovers.

ago, the Perfect Shopper franchise group was launched that allowed these neighbourhood shops to join the group

and achieve cost savings on tinned and packaged goods, particularly groceries. Perfect Shopper purchases branded

goods in bulk from established food suppliers and stores them in large purpose-built warehouses, each designed to

serve a geographical region. When Perfect Shopper was established it decided that deliveries to these warehouses

should be made by the food suppliers or by haulage contractors working on behalf of these suppliers. Perfect Shopper

places orders with these suppliers and the supplier arranges the delivery to the warehouse. These arrangements are

still in place. Perfect Shopper has no branded goods of its own.

Facilities are available in each warehouse to re-package goods into smaller units, more suitable for the requirements

of the neighbourhood shop. These smaller units, typically containing 50–100 tins or packs, are usually small trays,

sealed with strong transparent polythene. Perfect Shopper delivers these to its neighbourhood shops using specialist

haulage contractors local to the regional warehouse. Perfect Shopper has negotiated significant discounts with

suppliers, part of which it passes on to its franchisees. A recent survey in a national grocery magazine showed that

franchisees saved an average of 10% on the prices they would have paid if they had purchased the products directly

from the manufacturer or from an intermediary – such as cash and carry wholesalers.

As well as offering savings due to bulk buying, Perfect Shopper also provides, as part of its franchise:

(i) Personalised promotional material. This usually covers specific promotions and is distributed locally, either using

specialist leaflet distributors or loosely inserted into local free papers or magazines.

(ii) Specialised signage for the shops to suggest the image of a national chain. The signs include the Perfect Shopper

slogan ‘the nation’s local’.

(iii) Specialist in-store display units for certain goods, again branded with the Perfect Shopper logo.

Perfect Shopper does not provide all of the goods required by a neighbourhood shop. Consequently, it is not an

exclusive franchise. Franchisees agree to purchase specific products through Perfect Shopper, but other goods, such

as vegetables, fruit, stationery and newspapers they source from elsewhere. Deliveries are made every two weeks to

franchisees using a standing order for products agreed between the franchisee and their Perfect Shopper sales

representative at a meeting they hold every three months. Variations to this order can be made by telephone, but only

if the order is increased. Downward variations are not allowed. Franchisees cannot reduce their standing order

requirements until the next meeting with their representative.

Perfect Shopper was initially very successful, but its success has been questioned by a recent independent report that

showed increasing discontent amongst franchisees. The following issues were documented.

(i) The need to continually review prices to compete with supermarkets

(ii) Low brand recognition of Perfect Shopper

(iii) Inflexible ordering and delivery system based around forecasts and restricted ability to vary orders (see above)

As a result of this survey, Perfect Shopper has decided to review its business model. Part of this review is to reexamine

the supply chain, to see if there are opportunities for addressing some of its problems.

Required:

(a) Describe the primary activities of the value chain of Perfect Shopper. (5 marks)

(ii) Can we entertain our clients as a gesture of goodwill or is corporate hospitality ruled out？ (3 marks)

Required:

For EACH of the three FAQs, explain the threats to objectivity that may arise and the safeguards that should

be available to manage them to an acceptable level.

NOTE: The mark allocation is shown against each of the three questions.

(ii) If a partner, who is an actuary, provides valuation services to an audit client, can we continue with the audit？

(3 marks)

Required:

For each of the three questions, explain the threats to objectivity that may arise and the safeguards that

should be available to manage them to an acceptable level.

NOTE: The mark allocation is shown against each of the three questions above.

11. A. what be studied B. what should study C. what to study D. what studied

12. A. In three years B. For three years C. After three years D. Three years

13. A. never would be B. would be never C. would not be ever D. would never be

14. A. I didn't either B. Nor I did C. So didn't I D. Also didn't I

15. A. Not al1 B. Neither C. Nor D. Both

16. A. since B. while C. before D. whereas

17. A. understand B. recognize C. suggest D. inform

18. A. speaking B. to say C. to speak D. saying

19. A. a lot B. much C. a bit D. more

20. A. as B. being C. to be D. but

(b) Discuss the relevance of each of the following actions as steps in trying to remedy performance measurement

problems relating to the ‘365 Sports Complex’ and suggest examples of specific problem classifications that

may be reduced or eliminated by each action:

(i) Focusing on and improving the measurement of customer satisfaction

(ii) Involving staff at all levels in the development and implementation of performance measures

(iii) Being flexible in the extent to which formal performance measures are relied on

(iv) Giving consideration to the auditing of the performance measurement system. (8 marks)

A.am studying

B.tudied

C.study

D.have studied