1. avatar says

    Dear sir, i really need your help with this question, PLEASE HELP ME!

    Year ended oct 2003 Year ended oct 2004
    Revenue $ 5.75 Million $ 6 Million
    Number of styles 22 25
    Net profit $ 345,000 $ 348,000
    Market research cost $ 200,000 $ 150,000

    Required: Calculate Increase in sales per $ of market research.

    • Profile photo of John Moffat says

      Capital budgeting is another name for investment appraisal, which is dealt with in Chapter 21 (and the lecture that goes with it).

      There is no chapter in spreadsheets – the Course Notes are not Study Texts, they are notes that we use on courses. We do not teach spreadsheets on the courses because most students are familiar with them from work (and there are never many questions in the exam).

  2. avatar says

    Thank you for the great lectures John. In Test Question 4, the answer indicates that the target rate of return = cost of finance. Are these two terms interchangeable? or is there a play in the question? If cost of finance means as it does [interest payable on an investment loan (?) ], shouldn’t we consider this a cost? which reduces the profit? Many thanks!

  3. avatar says

    Hi John Moffat ..after really struggling to get a handle of MA2 , failing it in June ,to passing both Ma2 and Fma today in the CBE exam 70% in one and 64% in the other , it was all down to your fma lectures . Thank you so much !!!!

  4. avatar says

    How we can distinguish in exam:
    1. performance measurement – ROI or ROCE – (profit/capital employed)* 100% and
    2.divisional performance measurement – also is ROI !!!! ( controllable profit/controllable investment) * 100%.
    What they meant by investment ( I do not understand , exactly which figures will be , if we look at the balance sheet)

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