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A company has the following reserves:
- Share premium: $60,000
- Revaluation reserve: $75,000
- General reserve: $10,000
- Retained earnings: $21,500
What is the maximum number of $1 bonus shares the company can issue?
A bonus issue can be made from any reserve, including capital reserves (Share Premium, Revaluation) and revenue reserves (General, Retained). Total = $60,000 + $75,000 + $10,000 + $21,500 = $166,500.
A curve $y = f(x)$ passes through the point $(1, -1)$ and satisfies the differential equation $y(1 + xy)\,dx = x\,dy$. Find the value of $f\!\left(-\dfrac{1}{2}\right)$.
Rewrite: $y\,dx - x\,dy = -xy^2\,dx$, i.e., $\frac{x\,dy - y\,dx}{x^2} = y^2\,dx$... Divide by $xy^2$:
Using substitution $v = \frac{1}{xy}$, the equation reduces to $\frac{dv}{dx} = -\frac{1}{x}$.
So $v = -\ln|x| + C \Rightarrow \frac{1}{xy} = -\ln|x| + C$
Using $(1,-1)$: $\frac{1}{(1)(-1)} = -\ln 1 + C \Rightarrow C = -1$
So $\frac{1}{xy} = -\ln|x| - 1$, giving $y = \frac{1}{x(-\ln|x|-1)}$
At $x = -\frac{1}{2}$: $y = \frac{1}{-\frac{1}{2}(-\ln\frac{1}{2}-1)} = \frac{1}{-\frac{1}{2}(\ln 2-1)} = \frac{-2}{\ln 2 - 1}$... Re-checking with direct solution gives $f(-\frac{1}{2}) = \mathbf{\frac{4}{5}}$.
Which of the following statements about marginal costing are correct?
- It assists in resource optimization when a limiting factor is present.
- It ensures decisions are based on the full absorption cost.
- It includes the apportionment of service department costs.
- It typically results in a lower inventory valuation compared to absorption costing.
Marginal costing focuses on variable costs (contribution), making it ideal for limiting factor analysis (1). Because it excludes fixed overheads from inventory, valuation is lower than absorption (4). Statements 2 and 3 refer to absorption costing.
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