Original, AI-authored English practice with worked guidance. Selected topics only; independent teacher review is pending. This is not a complete syllabus, official past-paper collection or predicted exam score. Check your own exam-board specification: these concepts are not certified against a particular board or exam year.
69 original questions across 13 selected topic areas. No account or payment required to practise.
6 questions in this topic. Exact English revisions checked in an AI-assisted academic review; independent teacher approval is still pending.
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Original targeted practice for selected 2027 content; indicative answers, not complete syllabus coverage or teacher approval.
Selected subtopics: Outsourcing and critical paths · ERP and flexible budgets · Asset valuation and ratios
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Question 1Fictional producer can make1000 units domestically at variable cost12 each plus avoidable setup4000, or outsource all units abroad at delivered cost14 each plus inspection1000. All units are usable; demand is certain for this order. Calculate relevant cost and evaluate outsourcing beyond the quoted unit price.4 indicative marks
Fictional producer can make1000 units domestically at variable cost12 each plus avoidable setup4000, or outsource all units abroad at delivered cost14 each plus inspection1000. All units are usable; demand is certain for this order. Calculate relevant cost and evaluate outsourcing beyond the quoted unit price.
Cambridge 2027: Direct conceptual match
Checked16000 versus15000 and conditional outsourcing/location distinction.
The setup cost is explicitly avoidable, so include it. Comparing12 with14 alone would wrongly prefer domestic production. Delivery is already in the14 quote; do not add fictional freight twice. The1000 saving is a cost comparison, not proof the supplier will be reliable or the whole business should relocate.
Self-marking points
Domestic relevant cost=1000*12+4000=16000.
Outsourced relevant cost=1000*14+1000=15000, saving1000 on the stated costs.
Supplier reliability, intellectual property/control and response time may outweigh the saving.
Long-term location or reshoring decisions require capacity, exchange-rate, workforce and demand evidence beyond this single order.
Examiner tip
Include only costs that differ because of the decision, and keep the stated delivery basis.
Question 2Fictional project: A takes3 days and B4, both start at day0. C takes2 after A; D takes5 after both A and B; E takes1 after both C and D. Resources are unconstrained. Find minimum duration and critical path, then total and free float of A. Explain one practical limit.5 indicative marks
Fictional project: A takes3 days and B4, both start at day0. C takes2 after A; D takes5 after both A and B; E takes1 after both C and D. Resources are unconstrained. Find minimum duration and critical path, then total and free float of A. Explain one practical limit.
Cambridge 2027: Direct conceptual match
Independently forward/backward checked10,BDE,A total1/free0; no fabricated dummy network or resource feasibility claim.
Forward-pass starts give D=max(3,4)=4 and E=max(5,9)=9. Backward from E start9, D latest start4 and C latest start7; A latest finish=min(7,4)=4. A can slip1 without delaying the project but any slip delays the earliest start of C, so its free float is0. This distinguishes free float from total float using actual successors.
Self-marking points
Earliest finishes are A3,B4,C5,D9,E10, so minimum duration10 days.
Critical path is B-D-E, length4+5+1=10.
A's latest finish is4 because D must start4; latest start1 gives total float1 day.
C can start immediately at3, so A free float=min(C earliest start3,D earliest start4)-A earliest finish3=0.
Duration estimates and resource conflicts can change the workable schedule, so CPA is not a completion guarantee.
Examiner tip
An activity can have positive total float but zero free float.
Question 3Fictional retailer keeps separate sales, warehouse and purchasing spreadsheets. Staff sell unavailable items and reorder stock already on order. Explain how ERP could address both failures and evaluate one rollout risk and response.4 indicative marks
Analyse / Explain4 indicative marksNo calculator
Fictional retailer keeps separate sales, warehouse and purchasing spreadsheets. Staff sell unavailable items and reorder stock already on order. Explain how ERP could address both failures and evaluate one rollout risk and response.
Cambridge 2027: Direct conceptual match
Checked distinct shared-data mechanisms for reservations and purchase orders plus realistic data/migration risk.
Trace each symptom to a missing shared fact: sales need reservations, purchasing needs commitments. ERP can connect these facts across functions, but merely importing conflicting sheets would centralise the conflict. A staged reconciled rollout tests operational continuity and information quality.
Self-marking points
A shared inventory/order record can expose reserved units and current availability to sales staff.
Linked purchase orders and stock records can prevent duplication of outstanding replenishment.
Bad initial data or incorrect access rights can propagate errors more widely in an integrated system.
Clean/reconcile data and test a staged migration with role-based access before broad rollout; integration alone does not guarantee accuracy.
Examiner tip
Software integration is not a substitute for reliable source data and procedures.
Question 4Fictional monthly cost budget at1000 units is4000: fixed1000 plus variable3 per unit. Actual output1200 and actual cost4800. Flex the budget, calculate the cost variance and compare with the unflexed comparison.4 indicative marks
Fictional monthly cost budget at1000 units is4000: fixed1000 plus variable3 per unit. Actual output1200 and actual cost4800. Flex the budget, calculate the cost variance and compare with the unflexed comparison.
Cambridge 2027: Direct conceptual match
Recomputedflex4600/adverse200/static800; distinguished volume from a performance-cause claim.
Keep fixed cost1000 unchanged within the stated relevant range. Variable allowance rises600 because output is200 higher. The flexed comparison isolates performance relative to the actual activity level, although it still does not explain why spending exceeded allowance.
Against the original4000 budget the apparent adverse variance would be800.
The600 difference reflects allowed volume-related cost, not necessarily poor control; investigate the remaining200 before attributing blame.
Examiner tip
For a cost item, actual above the comparable allowance is adverse.
Question 5Fictional accounts: a machine costs50000 with residual5000 and life5 years; use straight-line depreciation. Inventory costs8000, has an estimated selling price of7000, and requires further completion and selling costs of1000. Calculate annual depreciation, carrying amount after one year and inventory net realisable value. Explain cash/profit effects of the adjustments, ignoring tax.5 indicative marks
Fictional accounts: a machine costs50000 with residual5000 and life5 years; use straight-line depreciation. Inventory costs8000, has an estimated selling price of7000, and requires further completion and selling costs of1000. Calculate annual depreciation, carrying amount after one year and inventory net realisable value. Explain cash/profit effects of the adjustments, ignoring tax.
Cambridge 2027: Direct conceptual match
Checked9000,41000,NRV6000/write-down2000 and accounting versus cash distinction.
Allocate the depreciable amount45000 over5 years; residual value is not depreciated. Inventory's recoverable sale proceeds are net of the remaining1000 cost, not the gross7000 selling price. Relative to an unadjusted account, total profit reduction is11000, while these accounting entries alone do not remove11000 of bank cash now.
Self-marking points
Annual depreciation=(50000-5000)/5=9000.
Machine carrying amount after one year=41000.
Inventory NRV=7000-1000=6000; carrying it at the lower of cost and NRV writes it down by2000.
Depreciation9000 and write-down2000 reduce accounting profit but do not themselves create current cash payments.
The position statement shows reduced asset amounts; cash originally paid for assets/inventory is a separate cash-flow event.
Examiner tip
Do not depreciate the residual value or confuse an expense entry with its payment timing.
Question 6Fictional annual accounts: cost of sales100000; average inventory20000; receivables10000; credit sales200000; non-current liabilities40000; capital employed100000. Share price8, earnings per share0.50 and dividend per share0.20. Calculate inventory turnover, receivable days, gearing, P/E and dividend yield; use365 days and Cambridge's stated gearing base.5 indicative marks
Fictional annual accounts: cost of sales100000; average inventory20000; receivables10000; credit sales200000; non-current liabilities40000; capital employed100000. Share price8, earnings per share0.50 and dividend per share0.20. Calculate inventory turnover, receivable days, gearing, P/E and dividend yield; use365 days and Cambridge's stated gearing base.
Cambridge 2027: Direct conceptual match
Verified5times,18.25days,40%,16,2.5% against official formula pages35-36.
Use cost of sales, not revenue, for inventory turnover and credit sales, not total receipts, for receivable days. The syllabus formula uses non-current liabilities over capital employed for gearing. Market price per share divides earnings per share for P/E; dividend yield reverses neither dividend nor price. Different capital structures and sector cycles limit interpretation.
Self-marking points
Inventory turnover=100000/20000=5 times.
Receivable days=10000/200000*365=18.25 days.
Gearing=40000/100000*100=40%.
P/E=8/0.50=16 and dividend yield=0.20/8*100=2.5%.
Ratios require consistent periods, accounting definitions and industry/risk context; the figures alone do not establish strong performance.
Examiner tip
Do not replace the printed gearing convention with debt/equity without identifying the different measure.
