(b) Briefly explain the two types of informal communication known as the grapevine and rumour. (6 marks)
(b) Ratio analysis in general can be useful in comparing the performance of two companies, but it has its limitations.Required:State and briefly explain three factors which can cause accounting ratios to be misleading when used forsuch comparison. (6 marks)
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(c) Explain how absolutist (dogmatic) and relativist (pragmatic) ethical assumptions would affect the outcomeof Anne’s decision. (6 marks)
2 (a) Explain the term ‘backflush accounting’ and the circumstances in which its use would be appropriate.(6 marks)
(b) Identify and explain THREE approaches that the directors of Moffat Ltd might apply in assessing theQUALITATIVE benefits of the proposed investment in a new IT system. (6 marks)
(c) Identify TWO QUALITATIVE benefits that might arise as a consequence of the investment in a new IT systemand explain how you would attempt to assess them. (4 marks)
(ii) Explain THREE strategies that might be adopted in order to improve the future prospects of DiverseHoldings Plc. (6 marks)
(c) Excluding the number of complaints by patients, identify and briefly explain THREE quantitativenon-financial performance measures that could be used to assess the ‘quality of service’ provided by theDental Health Partnership. (3 marks)
