• Profile photo of John Moffat says

      I really do not know why you have posted this in the Paper F2 forum.

      If you have read the lecture notes for Paper F5, you will have seen in the first paragraph of the relevant chapter that you cannot be asked calculations on regression analysis in Paper F5. For that reason you are not given the formulae – you cannot be expected to use them!

  1. avatar says

    Sir if you don’t mind can i get some quizs that something look like ex2?

    because i read new formula from management accounting book sales in korea

    so i want to proof it new formula is work

    • Profile photo of John Moffat says

      Sorry, but I really do not know what you mean. If you have a book then surely the book will explain?
      Otherwise you should watch the lecture again.
      If the answers in your book do not make sense, then ask in the Ask the Tutor Forum for Paper F2,
      (and I do assume that you have tried our practice test for Paper F2?)

      • avatar says

        Sorry my Eng skill is really horrible x(

        I have found other formula to slove the example2 and I am wondering whether the formula works or not so if you don’t mind can I get some quizzes like that?

    • Profile photo of John Moffat says


      For F5 this is assumed knowledge from Paper F2.

      If you are studying F5 then I assume you will have been watching our lectures without free lecture notes in front of you (otherwise there is no point in watching the lectures). In that case you will have read the introductory paragraph in chapter 12 – especially the part in bold letters!

      In future please do not ask about Paper F5 as a comment to a Paper F2 lecture.

  2. avatar says

    Dear John,

    I have the same doubt as Sashen and the same seems to have been missed by you. 100s would mean we had to move 2 decimal places which you moved just 1. is there a specific reason or it was missed inadvertently.


  3. avatar says


    Should the cost in 1000s on the 4th line in fact read 85 as opposed to 80? I am using the lecture notes from F5 but the above lecture from F2

    Also, the answer in the back of the lecture notes show the answer as

    y= 31.430 + 73.21x

    Should this in fact read y=31,430 + 73.21x ? as per your answer in the lecture? (allowing for the variance in numbers due to the different value of the 4th line?

    many thanks

    • Profile photo of John Moffat says

      The fourth line in the answer does read 85 and so your first question is puzzling me.

      As regards the 31.430 – yes, indeed it should read 31,430 (and comparison with the high low equation confirms that). It is just a typing error.

      Incidentally, if you are studying for Paper F5 then I do hope you read the first paragraph of the chapter. Calculations on regression analysis can no longer be asked – you can only be expected to be aware of the idea. It is only in F2 that calculations can be asked.

      • avatar says

        I was referring to your answer in the lecture…your 4th line reads as 80 in the lecture.

        Yes, I am aware of that…I was going through the example to gain a broad understanding of regression

        Many thanks for the quick reply…much appreciated

  4. avatar says

    Hi Sir

    I would like to know in the final Equation:
    y = 32857 + 67.86x

    I understand that 32.857 the decimal moved to the right because there was 3 zeros in the cost figure.

    I would like to know why did 6.7857 only moved one decimal place ?

  5. avatar says

    Great Explanation…Thanks alot Mr. John!

    As i understand regression method is only to overcome the drawback of high low method, give the point that can approximately across all our observation…

    Am i right Sir! as my understanding…

    • Profile photo of John Moffat says

      Its more than that :-)

      Regression analysis is the most accurate way of finding the relationship between two variables (assuming that it is more or less linear). The high-low method is simply a quick approximation that can lead to very inaccurate results.

      • avatar says

        and also this analysis is more accurate if the degree of correlation between x , y is high. Now i understand better after taking the next lecture….Thanks for your support.

  6. avatar says

    Hello, Mr. Moffat

    I am trying to understand as to how you came across the way to get back the variable cost (b) and the fixed cost (a) back into its actual cost, as in if we never did the substituting to make the arithmetic quicker. Just to see if I was right, is this because if I transposed the formulae “y = a + bx” to suit ‘a’ and ‘b’, as in: a= y – b/x and b = y/x – a,
    – in a’s case you would only have to multiply by 1000 because the ‘y’ costs in the formulae were not being divided by the ‘x’ units.
    -and in b’s case you would have to multiply by 1000 (y costs) and also divide by 100 (x units) because ‘y’ was being divided by ‘x’. ?

  7. Profile photo of Ehtisham says

    Hi, open tuition haven’t video lecture for MAI and FA1.
    And…..,your video lectures are very supportive for us but they may be more supportive if simple and easy wording used in them. Thanks.

    • Profile photo of John Moffat says

      No – there are no video lectures for MA1 and FA1. We only introduced course notes for these papers recently – if there is the demand then we will produce video lectures when we have the time available.

      With regard to the wording, these lectures were recorded in a class of non-English students and the words used are very much the words that are used in the exams.

  8. Profile photo of Mahoysam says

    lol Mr John, you are funny in the class room! I remember when I took that lesson in F2 I was going to real classes not online and the tutor simply asked us to open the book and solve the formula without any explanation and the formula actually looks scary but it is easy if it is explained because it is nothing but working out numbers! I studied it on my own at home later and I knew it is simple but he had to explain what these symbols mean!!! I didn’t even know what sigma means, how am I supposed to solve it!!!

    • Profile photo of John Moffat says

      The totals in the lecture are correct. Are you sure that you have got the correct numbers for each of the Y’s, because the total does come to 420. (OK it is really 420,000 but it is more sensible to work in ‘000’s – it makes the arithmetic quicker and does not affect the answer.)

      • Profile photo of John Moffat says

        As it says in the Course Notes, although regression is no longer listed in the syllabus, it is still assumed knowledge from Paper F2. You will not be asked calculations but you are still expected to be aware of the idea.

      • avatar says

        actually sdmaalex is correct about the total Y’s being 425, because April Cost is 85000 not 80000 in the course notes, Thats why he/she came up with that total. But really good lecture and thanks

    • Profile photo of John Moffat says

      Did you really mean ‘b’ (the variable cost per unit)? If you did, then see my answer to this below.

      If you meant to type ‘a’ (the fixed cost) then we only need to multiply by 1000 because the costs were in thousands. (We do not need to divide by 100 because we are not multiplying ‘a’ by the units (which are in 100’s).

      • avatar says

        I have Heard today they have removed, correlation, regression, n time series from tha june 2013 syllabus n have added another chapter, Could you please let us know about it. it was just recent update

      • Profile photo of John Moffat says

        The syllabus change was announced last year – you can see the new syllabus and the changes on the ACCA website, there are many posts on our website about it, and of course there is a big article in the Student Accountant.

        Correlation and regression, and time series have indeed been removed from the syllabus because they are assumed knowledge from Paper F2. The examiner has said that you will not be asked for calculations although you are still expected to know what the topics are.

        Basic variances have also been removed – again because they are assumed knowledge – however you can still be asked calculations of basic variances and also understanding the rules for basic variances is necessary to be able to do planning and operational variances.

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