Basic Variance Analysis: Please note that this lecture relates to Chapter 13 of the Course Notes and not Chapter 12 as stated in the lecture.
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Are basic variances really removed as adnanaadi101 is saying? I get the logic that we have to understand the basics in order to get the advanced but I was hopping to get some question about basic variances because they are easy.. Also I am surprised to learn that they are removed given that there is a whole section in my revision kit for basic variances question, why would they put it if they are removed, can anyone confirm please?
..and if they are removed, are we still be required to produce an operating statement?
They are still examinable as assumed knowledge from Paper F2.
You will not be asked a full operating statement, but you can be asked any of the individual variances as part of a question (also you need to understand basic variances to be able to calculate planning and operational variances).
Thanks a lot for the clarification! I am hoping we will get some question on basic variances, they are very easy specially that we took them already back in F2.
Well done Opentution, Good job! Hope I will pass this one by the grace of God.
hi admin
the basic variance is remove from f5 syllabus
And how are you going to do advanced variances if you do not understand the basics??
They are not removed – they are assumed knowledge from Paper F2 and are still examinable.
hi, can i down load these videos to my computer?
you can only watch on line
Hi team is it possible for me to watch lectures via mobile? I can see the first two seconds of the video on my phone but it doesn’t continue thereafter.
Please let me know if the lectures are only viewable from a computer or tablet?
The lectures should work on the phone as well, maybe Internet connection is slow at your end, but they work fine on 3G
i watch abc but not access to other lectures on mobile what should i do
where on earth did he get closing inventories figure of 700?!! anyone? thanks!
If you look at the question, it says that the budgeted production was 8700 units and the budgeted sales were 8000 units.
Since it also says that there is no opening inventory, it rather suggests that the closing inventory is 700 units.
(I assume that you have downloaded the course notes – as it says everywhere, the lecture is using the course notes.)
where can i find the exam type questions being worked?
@latoyah, There is a link from the F5 page on the website.
@johnmoffat, Thank you very much.
you are a life saver.
@latoyah, You are welcome
i think open tuition is the only best thing in life that is free: you guys are doing a marvellous job but i would suggest you try solving exam type questions in your examples because the exams are based on senarios which are sometimes difficult to understand but most of your examples are straight forward
@chiclarence, I understand your point, but the purpose of these lectures is to teach people the concepts.
We have uploaded separately lectures that work through past exam questions, and will upload more of these as time permits.
It’s very difficult to watch the video. can you please advice?
it’s difficult to advise, when we don’t know what you mean by “difficult”
check support page for help http://opentuition.com/support/
very logically explained..i think that’s what as students we need to be taught…thumbs up for the lecturer..he is EXCELLENT..!!!
Fantastic leture. thanks to opentuition.
I never noticed how amusing some comments are…tip,for a short break/good laugh,take a look
sure its useful
Great Job!!
very good and useful lecture
PLEASE TELL ME
which book he is refering to?
If you look and listen you carefully, it says everywhere, all lectures are based on OpenTuition course notes
@admin, LOL
hafiz munawar you are an amazing/amusing student. gud luck. your gonna need it.
oops that was insult… keep it up hafiz munawwar that was a rocking question…
Not convinced why fixed overheads of the Flexed budget should not be the same as the Budgeted(The Standard) ?Flexed Budgeting was examined in June2011 Q3 and Fixed cost of the budgeted and the Flexed was the same .Have I missed something here? Is there any one up there to drop me a line of explanation please?
@Et, If you are asked simply to produce a flexed budget, then certainly it makes sense to keep the fixed costs as per the budget figure.
However, for variance analysis using absorption costing we are effectively flexing the fixed overheads (as in the example in the lecture).
The reason is that the sales volume variance is calculated based on the standard profit per unit. Doing this effectively assumes that the fixed overhead per unit flexes (otherwise the standard profit per unit would change). Because of this we also have a volume variance for fixed overheads.
The flexing in this example is to illustrate what is happening, and why. In a variance question in the exam you will not actually be asked to flex the budget – you will be asked to calculate the variances directly and possibly also produce an operating statement.
@johnmoffat, My original question was raised in Nov2011. Today 19April 2012 I saw your reply of 15 Feb2012 .As I did not pass F5 last time I still need to know the answer why? Thanks for that.
John,You also said that” in the exam you will not actually be asked to flex the budget ” What was qustion no 3 of June 2011 asking for 12 marks then? I may not have understand what the question is about ,as always is the case for me when it comes to ACCA papers, but this specifc question was asking to flex the budget. Check it out if you have a chance and prove me wrong.
@Et, My answer said that in a variance question you will not be asked to flex the budget but to work out the variances directly.
In the June 11 exam, part (a) of question 3 did ask for a flexed budget, but it was not asking you to calculate the variances. (Parts (b) and (c) asked about variances but were not related directly to the flexing).
Using absorption costing implicitly flexes the fixed overheads. This is why in Paper F2 there is under or over absorption of fixed overheads, and it is why in Paper F5 that the fixed overheads variances are not just the expenditure variance (as with marginal costing) but also the volume variance (which can be analysed into capacity and efficiency).
The reason the example in the course notes flexes the budget first is simply to explain the problem and the reason for the extra fixed overheads variances, rather than simply quote rules (even thought the fixed overhead variance ‘rules’ are of course given in the lecture.)
@johnmoffat, Thank you so much for taking your time .I felt that some one is keeping an eye on us to help us achieve our goal which is so encouraging!
Opentuition has improved since the last time I used it.Your responses are quick. I wish people are aware how much this means .
It costs £985 to attend 4 days tuition and 4 days revisoin at Kaplan.It might be more this year I don’t know, I did not pass last time so I am not attending class this time.I am revising useing my notes and OT.
How much does it costs at OT ? FREEEEEEEEEEEE!!!!!. Listen every body it is FREEEEEEEEE Please be appreciative and tell the wold so that we will get more out of it.
Admin how can I download this Podcast
Lectures are not for use OFFLine
the only way they can be free is when you watch them ONLINE
it was really help full …gud work open tution!
thank u but where the picture?
is been very helpful
great lecture
How do I Click and watch
No, but you can watch it as many times you want on line
where can i get the info so i can follow what the lecturer is talking about….or which text is he using… pls help
download F5 course notes
Very helpful. By the way, what study text are they using?
@amoateng
lectures are recorded using OpenTuition course notes
very clear/and easy to understand. however with regard to the explanation as to why the fixed overhead has change when we were doing the flexed buget.I was hoping the he would explain that to us.
but there is no picture of lecturer
nice lecture
thank you Sir!
icant watch the video till the end it stops when the timer reaches to 20min
what do i do . guys need help!