Accounting 9706/42 March 2024 | Cambridge AS Level Past Papers With Mark Scheme

1. Importance of considering non-financial factors in investment decisions, limitations of traditional appraisal techniques like IRR and NPV.

2. Calculation of net cash flows, fixed and variable costs, and IRR to evaluate the profitability of licensing investments.

3. Flexible budgeting and variance analysis, focusing on material, labor, and overhead variances to assess cost control and efficiency.

4. Analysis of fixed overhead volume variances, including sub-variances related to production levels and capacity utilization.

5. Strategic benefits of preparing trade receivables and payables budgets for improved cash flow forecasting and financial planning.

6. Financial evaluation of production cessation scenarios, with recommendations based on cost-saving and profitability implications.