OpenTuition.com Free resources for accountancy students
Free ACCA lectures and course notes | ACCA AAT FIA resources and forums | ACCA Global Community
ACCA F2 / FIA FMA lectures Download ACCA F2 notes
April 5, 2016 at 11:46 am
Wanna start off thanking you for the amazing lectures. However, something I didn’t quite understand: on the operating statement, why did we divide fixed overheads into three only, what about ‘Total Variances’ and ‘Volume Variances’?
Thanks a lot in advance. You are awesome!
John Moffat says
April 5, 2016 at 7:11 pm
Thank you for the comment.
I do show the total fixed overhead variance (574 in this example) and in the later lectures I analyse this into expenditure and volume variances, and then analyse the volume variance into the capacity and efficiency variances.
November 24, 2015 at 6:23 am
In this lecture, on the Operating Statement, under Fixed Overhead Cost, you have divided it into three variances:
1) Expenditure with 3,574 (A)
2) Capacity with 1,800 (F) and
3) Efficiency with 1,200 (F)
You have shown the workings on Expenditure Variance on the previous lecture.
Would really appreciate if you can explain further, where can I get the variance on Capacity and Efficiency.
Thank you so much in advance.
November 24, 2015 at 8:05 am
The workings are in the previous lecture to this one (Variance analysis (part f))
November 24, 2015 at 10:25 am
Oh my, this is embarrassing. You have fully explained it perfectly. I’ve wrongly clicked into the next lecture and missed it.
Or you have just add in the lecture? 😀 Joking.
Thank you so much, for still replying my silly/embarrassing question.
Have a good day!
November 24, 2015 at 3:40 pm
It is not problem and you are welcome 🙂
(and I did not just add the lecture – honest!! 🙂 🙂 )
December 10, 2012 at 7:36 pm
Thank you sir you helped me alot in all the topics of FMA!!!
I am going to give my CBE on 13th of December, and I hope I em going to pass it with flying colors just because of your lectures.. 🙂
HATS OFF to you !!
December 11, 2012 at 8:40 am
@maazalimughal, Best of luck with the exam 🙂
November 8, 2012 at 10:51 pm
Dear Sir , when you have valued closng inventories…. it was @ standard cost….
there has been an impact on the profit…
y it is the question still going smooth????
is there any logic behind????
December 11, 2012 at 8:42 am
@ryanpieblock, In management accounting we always value the inventory at standard cost. The reason is that the management accountant will usually be doing statements monthly and it will be silly to keep valuing the inventory differently just because some months we spent a more than we should have, and some months we spent less than we should have.
This is different than the financial accounts (because in financial accounts inventory will be valued at actual cost) but we are not doing financial accounts.
In practice the standard cost might well be changed during the year, but not for Paper F2.
Miss A.. says
October 8, 2012 at 1:02 am
Dear Sir,I can’t get why is sales price variance ‘ adverse’ in the above example??
shouldn’t it be favourable…??
because actual sales at actual Selling price ……..$613200
actual sales at standard selling price………………..$630000
actual results are lower than expected.Shouldn’t it be favourable because it is saving cost??
October 8, 2012 at 5:06 am
@Miss A.., But sales revenue is not a cost – it is income!!!
Lower selling price will mean less profit.
April 16, 2012 at 6:18 am
In operating statement the final profit comes 38660? not 37808..why?/
January 19, 2012 at 1:25 am
To make sales budget how do i determine that demand in terms of new business where there is no previous data ?
You must be logged in to post a comment.
OpenTuition is dedicated to providing all accountancy students throughout the world with the resources they need to study for the major accountancy … Learn more