Learn or revise key terms and concepts for your F5 exams using OpenTuition interactive ACCA Flashcards
ACCA flashcards are interactive and ONLY work on line, flashcards are NOT downloadable/printable
See also ACCA f5 Flashcards: Set 1 | Set 2 | Set 3
What are the uses of standard costing?
Click to View the Answer Click to View the QuestionUses of standard costing are:
* inventory valuation
* as a basis for pricing decisions
* for budget preparation
* for budgetary control
* for performance measurement
* for motivating staff using standards as targets
What is meant by the return per factory hour in throughput accounting?
Click to View the Answer Click to View the QuestionReturn per factory hour = Throughput /Time on key resource What is meant by total factory costs for throughput accounting?
Click to View the Answer Click to View the QuestionTotal factory costs = all production costs except materials
When comparing service businesses with manufacturing businesses, what is the relevance of intangibility?
Click to View the Answer Click to View the QuestionServices are intangible and it is therefore harder to measure the quality.
When comparing service businesses with manufacturing businesses, what is meant by simultaneity?
Click to View the Answer Click to View the Question The service is received by the customer at the same time as it is performed.
What is meant by the term ‘sunk cost’?
Click to View the Answer Click to View the QuestionA sunk cost is a cost that has already been incurred (and is therefore not affected by any future decision).
What is meant by price discrimination?
Click to View the Answer Click to View the QuestionPrice discrimination is when the same product or service is sold at different prices in different markets.
What is meant by volume discounting pricing strategy?
Click to View the Answer Click to View the QuestionVolume discounting is the strategy of offering a discount to customers who purchase a large quantity
What is meant by the penetration pricing strategy?
Click to View the Answer Click to View the QuestionPenetration pricing is the strategy of charging a low price when a product is first launched in order to gain market share, with the intention of increasing the price later.
What is meant by the market skimming pricing strategy?
Click to View the Answer Click to View the QuestionMarket skimming is the strategy of charging a high price when a product is first launched, with the intention of reducing the price over time. (A popular strategy for new technology – rich people are prepared to pay higher prices to be the first to own the new technology)
What is meant by the term shadow cost (or shadow price)?
Click to View the Answer Click to View the QuestionThe shadow cost of a resource is the most extra (i.e. the premium) that the business would be prepared to pay for one extra unit of the resource.
(calculated as the extra contribution that would be generated by having one extra unit of the resource at its original cost).
What is the definition of the CS ratio?
Click to View the Answer Click to View the QuestionThe CS ratio = contribution / sales
What is meant by the term ‘margin of safety’?
Click to View the Answer Click to View the QuestionThe margin of safety is the difference between the budgeted sales volume and the breakeven sales volume.
It can be expressed in units, or in $’s of revenue. or as a percentage of the budgeted sales volume.
What are the labels of the axes on a profit volume graph?
Click to View the Answer Click to View the QuestionThe vertical axis shows the profit (or loss) in $’s.
The horizontal axis either shows the volume in units, or the sales revenue in $’s
What are the labels of the axes on a breakeven chart?
Click to View the Answer Click to View the QuestionThe vertical axis shows the costs and revenues in $’s.
The horizontal axis shows the volume in units.
What is meant by the term breakeven sales revenue?
Click to View the Answer Click to View the QuestionThe sales revenue at which the profit is zero
(i.e. no profit / no loss)
What is meant by the term breakeven sales volume?
Click to View the Answer Click to View the QuestionThe number of units sold at which the profit is zero (i.e. no profit / no loss)
List four methods that may be used to account for environmental costs.
Click to View the Answer Click to View the Question1 Inout / output analysis
2 Flow cost accounting
3 Life cycle costing
4 Activity based costing
In what ways can the throughput accounting ratio of a product be improved?
Click to View the Answer Click to View the Question1 Increase the selling price
2 Reduce material cost per unit
3 Reduce the operating expenses
4 Reduce the time required per unit
What is the definition of the throughput accounting ratio (TPAR) for a product?
Click to View the Answer Click to View the QuestionTPAR = throughput contribution per hour / factory cost per hour
What is meant by the term ‘bottleneck’ in the context of throughput accounting?
Click to View the Answer Click to View the QuestionThe bottleneck is the operation that is limited the rate of production
What are the two main assumptions in throughput accounting?
Click to View the Answer Click to View the Question1) That the company operates following just-in-time principles (i.e. keeping minimum levels of inventory)
2) That in the short term, all costs are fixed other than the cost of materials (i.e. that the only variable cost is materials)
What are the main steps that should be considered in order to maximise the return over the life cycle of a product?
Click to View the Answer Click to View the Question1 Design costs out of the product
2 Minimise the time to market
3 Maximise the length of the life cycle
What are the phases in a product’s life cycle?
Click to View the Answer Click to View the Question* Development phase
* Introduction / launch phase
* Growth phase
* Maturity phase
* Decline phase
What is the basic idea of lifecycle costing?
Click to View the Answer Click to View the QuestionThe idea of lifecycle costing is to include all costs over the entire life of a product (and hence the estimated profitability) as opposed to costing over one year at a time.
What steps might be taken in order to reduce the ‘cost gap’ in the context of target costing?
Click to View the Answer Click to View the QuestionSteps to be considered would include:
1) Value analysis – change the design so as to eliminate costs that do not add value in the perception of the customer
2) Cut material costs by reducing wastage
3) Cut labour costs by finding ways of working faster
4) The use of technology to make production more efficient
What is meant by a ‘cost gap’ in the context of target costing?
Click to View the Answer Click to View the QuestionThe cost gap is the excess of the estimated cost of production over the target cost
What are steps involved in calculating a ‘target cost’?
Click to View the Answer Click to View the QuestionIn order to calculate a target cost:
1 Determine a realistic selling price
2 Decide on what profit is required
3 Subtract the profit from the selling price to arrive at the target cost.
What is meant by the term ‘cost driver’ in the context of activity based costing?
Click to View the Answer Click to View the QuestionThe cost driver is the unit of an activity that causes the activity cost to change.
What are the uses of standard costing?
Uses of standard costing are:
* inventory valuation
* as a basis for pricing decisions
* for budget preparation
* for budgetary control
* for performance measurement
* for motivating staff using standards as targets
What is meant by the return per factory hour in throughput accounting?
What is meant by total factory costs for throughput accounting?
Total factory costs = all production costs except materials
When comparing service businesses with manufacturing businesses, what is the relevance of intangibility?
Services are intangible and it is therefore harder to measure the quality.
When comparing service businesses with manufacturing businesses, what is meant by simultaneity?
The service is received by the customer at the same time as it is performed.
What is meant by the term ‘sunk cost’?
A sunk cost is a cost that has already been incurred (and is therefore not affected by any future decision).
What is meant by price discrimination?
Price discrimination is when the same product or service is sold at different prices in different markets.
What is meant by volume discounting pricing strategy?
Volume discounting is the strategy of offering a discount to customers who purchase a large quantity
What is meant by the penetration pricing strategy?
Penetration pricing is the strategy of charging a low price when a product is first launched in order to gain market share, with the intention of increasing the price later.
What is meant by the market skimming pricing strategy?
Market skimming is the strategy of charging a high price when a product is first launched, with the intention of reducing the price over time. (A popular strategy for new technology – rich people are prepared to pay higher prices to be the first to own the new technology)
What is meant by the term shadow cost (or shadow price)?
The shadow cost of a resource is the most extra (i.e. the premium) that the business would be prepared to pay for one extra unit of the resource.
(calculated as the extra contribution that would be generated by having one extra unit of the resource at its original cost).
What is the definition of the CS ratio?
The CS ratio = contribution / sales
What is meant by the term ‘margin of safety’?
The margin of safety is the difference between the budgeted sales volume and the breakeven sales volume.
It can be expressed in units, or in $’s of revenue. or as a percentage of the budgeted sales volume.
What are the labels of the axes on a profit volume graph?
The vertical axis shows the profit (or loss) in $’s.
The horizontal axis either shows the volume in units, or the sales revenue in $’s
What are the labels of the axes on a breakeven chart?
The vertical axis shows the costs and revenues in $’s.
The horizontal axis shows the volume in units.
What is meant by the term breakeven sales revenue?
The sales revenue at which the profit is zero
(i.e. no profit / no loss)
What is meant by the term breakeven sales volume?
The number of units sold at which the profit is zero (i.e. no profit / no loss)
List four methods that may be used to account for environmental costs.
1 Inout / output analysis
2 Flow cost accounting
3 Life cycle costing
4 Activity based costing
In what ways can the throughput accounting ratio of a product be improved?
1 Increase the selling price
2 Reduce material cost per unit
3 Reduce the operating expenses
4 Reduce the time required per unit
What is the definition of the throughput accounting ratio (TPAR) for a product?
TPAR = throughput contribution per hour / factory cost per hour
What is meant by the term ‘bottleneck’ in the context of throughput accounting?
The bottleneck is the operation that is limited the rate of production
What are the two main assumptions in throughput accounting?
1) That the company operates following just-in-time principles (i.e. keeping minimum levels of inventory)
2) That in the short term, all costs are fixed other than the cost of materials (i.e. that the only variable cost is materials)
What are the main steps that should be considered in order to maximise the return over the life cycle of a product?
1 Design costs out of the product
2 Minimise the time to market
3 Maximise the length of the life cycle
What are the phases in a product’s life cycle?
* Development phase
* Introduction / launch phase
* Growth phase
* Maturity phase
* Decline phase
What is the basic idea of lifecycle costing?
The idea of lifecycle costing is to include all costs over the entire life of a product (and hence the estimated profitability) as opposed to costing over one year at a time.
What steps might be taken in order to reduce the ‘cost gap’ in the context of target costing?
Steps to be considered would include:
1) Value analysis – change the design so as to eliminate costs that do not add value in the perception of the customer
2) Cut material costs by reducing wastage
3) Cut labour costs by finding ways of working faster
4) The use of technology to make production more efficient
What is meant by a ‘cost gap’ in the context of target costing?
The cost gap is the excess of the estimated cost of production over the target cost
What are steps involved in calculating a ‘target cost’?
In order to calculate a target cost:
1 Determine a realistic selling price
2 Decide on what profit is required
3 Subtract the profit from the selling price to arrive at the target cost.
What is meant by the term ‘cost driver’ in the context of activity based costing?
The cost driver is the unit of an activity that causes the activity cost to change.
In what ways can the throughput accounting ratio of a product be improved?
For this specific question among the answers given, how does the reduction in the time required per unit improves TPAR? I think it equally affects the throughput return per bottleneck resource and the factory cost of return for the available activity level of bottleneck resource.
Reducing the time per unit does not change the total time available in the bottleneck resource and therefore does not change the factory cost per hour.
Return per factory hour = Throughput / Cost per factory hour
I think right answer is Return per factory hour = Throughput /Time on key resource
Flash cards/SET1
did I get something wrong?
You are correct. Thank you for noticing – I will have it changed.
Thank you
You are welcome 🙂
Dear sir,
Hello there
I’m not sue am I writing to ypu in a correct place. I just didn’t find the blog to email tutor.
anyway my question is i am goin to start my f5 study, will i be able to finish my f5 in june?
is this time is enough for f5 ?
You should ask in the F5 Ask the Tutor Forum if you have a question of me (there is a link on the top bar for ‘forums’.
Yes – there is no reason why you should not be able to study in time for the June exams.
very helpful. opentuition keep the good work carry on
Thanks for the comment 🙂
A world if thanks for the flash card it been helping me a lot ??
You are welcome 🙂
Need some advice..kaplan or bpp books are better for clear my understanding.. n what qquestion I practised more n more.anyone have any suggestion about what types of question I practise more..???
Post this in one of the F5 forums – not as a comment on something completely different!
Thank you so much it is really helpful for revision
Thank you…It’s really helpful while revising.
Is it possible do download them in pdf format?
Oh, sorry, was too inattentive. Now i see that no.
Thank you
This is great practice
Thank you for the flash card notes OpenTuition! much appreciated!
Thank-you so much…this is very helpful.
very handful summary thanks a lot open tuition team.
Do make sure you attempt the mock exam here as well 🙂
(The questions are selected at random from a bank of questions, so every time you try the test you are like to get different questions.)
The mock exams are great..but its also better if you can give a small description about how you arrived at the right answer for mock question.
If you read the page before the test properly, you will see that if you do not understand how the correct answer is arrived at then you should ask in the Ask the Tutor Forum and we will explain.
(At present the software we use does not allow us to show the workings – I appreciate that there is software that will allow it, but since we provide this free of charge we cannot afford the extra software at the moment!)
Tips:
1) Cut an A4 paper into card size. Good enough to fit in your wallet/purse.
2) Copy the passcards (handwritten, little effort won’t cause you anything). Front page for question, back is for answer.
3) Read it during your free time.
4) Be glad, it is provided for FREE.
I failed f5 twice can somebody please guide how to pass f5!!! I hate f5
don’t say that i failed f5 the 1st time and i am not giving up ,smile and try again u will make it have a firm believe in urself and 1st and foremost trust in allah and say to urself if others can make it so can i do past exam questions keep practicing
I hate F5 also, but we have to pass it!
believe yourself next time u will pass.
just like edison, he also fail 99 times only success!!
well i did fail it twice too but this time insha Allah i will pass it with the help of open tuition just study the lecture notes and view the video lectures it will help you a lot after that you have to study the exam kit twice at least.
great job
awesome!!! after failing my F5 2 times I just discover the site…I hope open tuition will help me to pass all my papers…already interested by all the things I saw here
I hope so as well.
We will try our best to help.
Did u pass in june 2014 i wrote first time and failed but am not giving up
i was asking mireille
how can i download?
The cannot be downloaded – they can only be used online.
plz tell me how to download flash cards……………………………..
They can only be used online – they cannot be downloaded.
This is just wonderful.thank you so much.
A wonderful source.. Thanks to the Opentution team..
Great revision kits to revise studies and terminology! Thanks a lot
Hello fellow ACCA students, ACCA fellows, ACCA members and Course tutors/ lectures. I salute you all. I was studying Kaplan F5 manual from January up to April. It used to confuse me, but i continued using out of confusion till it confused me more. Now I’m failing to answer questions from the Rev Kit. I’m facing real difficulties. Whenever i read a question, i don’t have where to start answering from. please help me. I’m worried. what should i really do? please assist me.
download the course notes and watch all the f5 lectures available,
after you have covered a topic – try past exam question or 2 from the kit,
and move to another topic …
How about they download for iphone.
they work fine on the iphone, just double tap (zoom in)
i mean that service will be more useful in app form
it downloads hardly any data.. so it should not cost you much when you use it on 3g network
in comparison, developing an app is expensive… to give it away.. and we don’t think many people would buy it to justify it..
OT… Would you ever consider accepting donations for the possibility of creating an app? I for one would not hesitate one bit to donate in order to help you make your services even better than they already are!
Chris, although I would not rule out the possibility of an app at some stage, we do have to consider the cost involved (and thanks for the offer of a donation, but we are determined to keep everything free of charge 🙂 )
However, as admin said, the flashcards are viewable well on a smartphone and download very little data. Even if we did have an app it would need to use data occasionally as the bank of questions is updated or increased.
Hi John, no that’s fine and i have no problem viewing them at all on a smart phone etc.
Just a thought to put it out there! Thanks for your swift reply though, much appreciated.
Enjoy the rest of your day.
Many thanks again!
very! very! nice study materials
‘The bottleneck is the operation that is limited the rate of production’
should this sentence be “The bottleneck is the operation that limited the rate of production”?
OK sorry. It should actually have said’ the bottleneck is the operation that is limiting the rate of production.
Good day, the flash cards are wonderful, will there be any for P1?
Hi, yes, there will. Unfortunately they will not be available for this session – so I hope you will never need them!
Thank you for the flash cards it’s proving to be helpful in many ways
It really useful for the course like F5&F9
its really good, but why are they not downloadable and printable.
The only way that we can keep this site free is to have them only available online.
studying on the GO! very helpful.
Its really a good approach while revision
I have fail F5 three time but with oppentuition i can see i am going to pass it
I do hope that you are successful 🙂