(ii) Briefly discuss TWO factors which could reduce the rate of return earned by the investment as per the
results in part (a). (4 marks)
(ii) Briefly discuss TWO factors which could reduce the rate of return earned by the investment as per the
results in part (a). (4 marks)
(c) Explain the term ‘target costing’ and how it may be applied by GWCC. Briefly discuss any potential
limitations in its application. (8 marks)
(b) Advise the management of SCC Ltd of THREE strategies that should be considered in order to improve the
future performance of SCC Ltd. (6 marks)
(c) Discuss TWO limitations of the Boston Consulting Group matrix as a strategic planning tool. (4 marks)
(b) (i) State FOUR reasons why payback period is widely used by organisations in the capital investment
appraisal process. (2 marks)
(ii) Briefly explain the extent to which the application of sensitivity analysis might be useful in deciding
which refrigeration system to purchase and discuss the limitations inherent in its use. (3 marks)