(ii) Comment briefly on the use of its own tree plantations as a source of raw materials by Our Timbers Ltd.
(3 marks)
(ii) Comment briefly on how divisional managers might respond to the results achieved and ONE potentialproblem that might be experienced by Our Timbers Ltd. (2 marks)
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(ii) Briefly discuss TWO factors which could reduce the rate of return earned by the investment as per theresults in part (a). (4 marks)
(c) Explain the term ‘target costing’ and how it may be applied by GWCC. Briefly discuss any potentiallimitations in its application. (8 marks)
(ii) Briefly explain the extent to which the application of sensitivity analysis might be useful in decidingwhich refrigeration system to purchase and discuss the limitations inherent in its use. (3 marks)
(ii) Briefly discuss THREE disadvantages of using EVA? in the measurement of financial performance.(3 marks)
(d) Suggest a set of SIX performance measures which the directors of SSH could use in order to assess thequality of service provided to its clients. (3 marks)
(ii) Comment on the figures in the statement prepared in (a)(i) above. (4 marks)
