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ACCA F2 Cost classification part b
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Question 5 says “Up to a given level o? activity in each period the purchase price per unit o? a raw material is constant”i cant see that constant part on that graph?
The graphs are showing the total cost. If the price per unit is constant, then the total cost will increase linearly with more units!
the lecture is great. am enjoying it.
i now have a better understanding of cost behavior. Thank you Opentuition
Guys what the best book publusher for ACCA, have anyone tried Get Through Guide?
Can anyone explain Q7 from chapter 4 please? Did not understand the first bit of question – guarantees 80% of time based pay….?
guaranteed 80% of time based pay means that although they are paid on the basis of what they produce, the minimum they can be paid is 80% of what it would be if they were simply paid per hour.
So…the minimum they can be paid is 80% x 8 hours x $20 = $128
You have to calculate what they would be paid using piecework. If it comes to more than $128 then they get paid the piecework amount. If it comes to less than $128 they they get the guaranteed $128.
The full answer is at the back of the course notes.
Two budgets are given below:
Output(units) 1,000 2,000
Budgeted cost 2,500 3.500
The total fixed costs estimated for the 2,000 units budget are 20% higher than the total fixed costs for the 1.000 units budget.
What is the budgeted variable cost/unit of output?
plzz someone help me with this question..!!!!!
The answer is $0.625.
Use simple algebra.
I am getting $0.5…Can you please explain how it is $0.625?
This is how I worked:
Units Budgeted Cost
1000 2500
2000 3000 (as total fixed cost for 2000 units is 20% higher than that of 1000 units – hence 3500 – (20% of 2500) )
Using High low method then it comes $0.5
Your workings are treating the whole of the $2500 as though it was a fixed cost.
If v is the variable cost per unit, and if f is the fixed cost per unit, then:
for 1000 units: 1000v + f = 2500
for 2000 units: 2000v + 1.2f = 3500
There are several ways of solving these equations (all obviously giving the same answer!), but here is one way:
Multiply the first equation throughout by 1.2
This gives: 1200v + 1.2F = 3000
The subtract this equation for the equation for 2000 units:
(2000v – 1200v) + 0 = 3500 – 3000
so 800v = 500
v = 500/800 = 0.625
Can some one help me with question 1 please I understand the high low method but I don’t understand the trick thank u
Can some one help me question one I know how to do high low method but I didn’t understand the trick AND I HOPE THIS QUESTION WONT COME TO THE EXAM. Thank u
I love these tutorials. They make life easier
What software do i need to download on my galaxy note to view lectures?
flash player
Open tuition I love you:) Fantastic lecturer, the best I have ever had.
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i m using bpp txt there are many section left out un explained why ??
@sumi555, The Course Notes are not meant to replace Study Texts. The Course Notes (together with the lectures that go with them) contain everything you need to be able to pass the exam. However they do not claim to cover every single line of the syllabus – for that you need to refer to a Study Text.
so amazing how he makes it easy.thanks so much
what text book are they studying with?i am using the BPP LEARNING MEDIA textbook and although i find the lecturing here is spot on……….some of the examples i cant follow because my text is slightly different
@accakeisha, you can download the lecture note on this site.it says lecture course note
i never thought i would have had the option of having on line lectures
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Hi
Does anyone have a solution to Q. 7 of Chapter 4? I am unable to quite work it out!
Thank you
@muread, Have you check the back of the course notes? (Page 171)
hey can i get these questions anywhere online ?
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Very interesting lecture
Thank you open tuition.
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blessing!!!!
After watching this lecture I now have a much better understanding..thank you!
Awsome lecture … thank you very much opentuition …
Can I have the answers and workings for the rest of the questions. i.e. Question 7 (Page 20) to Question 11 (page 21?
@debbiechew, Try looking at the back of the Course Notes (page 171)
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well described! but how do i check the other answers for questins 7-11?
thank you
Excellent. Thanks a lot.
Cheers
Wonderful lecture opentuition, I really enjoyed and understand. Thank you!!!