Semi-Variable Costs: Regression Example 2

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  1. Avatar of marina1990 marina1990 says:
    May 19, 2013 at 1:33 pm

    Thanks alot for the lectures. They are very helpful. But i guess the total of Y should be 425000 and the total of X*Y should be 190500000.

    • Avatar of johnmoffat johnmoffat says:
      May 19, 2013 at 5:16 pm

      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.)

  2. Avatar of hlony hlony says:
    April 19, 2013 at 10:23 am

    Why didnt we do the same with the b;that is multiplying it with 1000 and then devide by 100?it kind of confuses me.

    • Avatar of johnmoffat johnmoffat says:
      April 19, 2013 at 5:30 pm

      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).

  3. Avatar of Leila Leila says:
    March 30, 2013 at 9:53 am

    Is this John in action? :) Thank you again for the lectures. You are awesome!

  4. Avatar of kclsean kclsean says:
    March 7, 2013 at 4:24 pm

    Hi Sir
    Why is Variable cost per unit only multiplied by 10 instead of 100 from 6.7857 to 67.86 ?

  5. Avatar of latoyah latoyah says:
    November 28, 2012 at 6:44 pm

    Thanks Opentuition

    • Avatar of johnmoffat johnmoffat says:
      November 28, 2012 at 7:19 pm

      @latoyah, You are welcome :-)

      • Avatar of hixam hixam says:
        March 5, 2013 at 9:17 pm

        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

        • Avatar of abeer1393 abeer1393 says:
          May 10, 2013 at 1:56 am

          is this true ?

          • Avatar of johnmoffat johnmoffat says:
            May 10, 2013 at 4:53 am

            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.

  6. Avatar of latoyah latoyah says:
    November 28, 2012 at 6:43 pm

    This had looked really hard before but now i finally understand it. I still hope it dont come on the F5 paper

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