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May 25, 2015 at 8:11 pm
Dear Mr John,
Thank you for becoming my friend and one of the most favourite teachers ???? Hope I would be able to say in the nearest future – I passed F5 thanks to Mr John and OT ????
John Moffat says
May 26, 2015 at 9:57 am
I hope so as well – best of luck with the exam
Allwell B Joseph says
December 27, 2014 at 7:29 pm
tnks a lot open tuition, last example really cracked my head but later figured it out
If division chooses to make product y they would be loosing $1($4-$3) profit which is not ideal for the organization, so they chose to make y ay x amount since they earn the highest contribution from y
Hope i’m correct
December 27, 2014 at 7:41 pm
Yes – you are correct
hassan rana says
November 13, 2014 at 2:09 pm
Can examiner asks us TPS MIS EIS ERP of 10 to 15 marks rather than asking performance of the business? Or examiner will just examine these systems in MCQs
November 13, 2014 at 3:13 pm
They could be asked in Section B, but if it is then I will be very surprised if it were more than a 2 or 3 mark part of a question.
November 13, 2014 at 3:14 pm
TPS MIS EIS ERP???
November 13, 2014 at 4:25 pm
Different management information software
May 13, 2015 at 7:39 am
Hi John is the video for transfer pricing unavailable? am not able to watch and really need to watch it.
May 13, 2015 at 8:06 am
It is there and it is working OK.
If you go to the support page then you should find help there – the link is just below the lecture.
November 6, 2014 at 7:39 pm
just a quick question. Do we charge the full contribution lost on the last example because we CAN make both? I initially done the question charging the marginal cost +£10 as this was the difference in lost contribution…
I can see how you have ended up with £70 + £40 but can also see my logic…. Could you pretty please explain….
Thank you again…
November 6, 2014 at 8:24 pm
If we did not supply the other division then we would prefer the make the one with the highest contribution per hour and would therefore be making $10 per hour.
If instead we use hours making the product for the other division, then because there are limited hours we would be losing $10 for every hour that we took away to make the product for the other division.
May 6, 2014 at 10:41 pm
Hi, the final example where product X’s income generated per hour was used for a question which was required to complete the minimum transfer price for Y? Could you please explain as to why the opposing products figure was used rather than the one which would have been required.
May 7, 2014 at 9:41 am
If Division B did not exist, then A would prefer to use the limited hours making product X (because X gives the biggest contribution per hour (key factor analysis)).
B wants Y, but if A makes Y then every hour they use to make Y’s takes away hours that could have been used to make X’s and therefore loses them contribution of $4 per hour. They will only be prepared to produce Y provided it earns them at least $4 per hour.
April 13, 2014 at 3:58 pm
It’s Sunday, the sun is shining and I am in studying!!! All i can say though is that these lectures are a great help and funnily enough make me want to studying more that what i was originally without using OT.
Great jobs guys and keep it up! Top Notch!
April 13, 2014 at 4:39 pm
Thanks a lot
November 28, 2013 at 12:37 pm
I am stating the obvious of course but:
Many thans John!
November 28, 2013 at 12:53 pm
November 24, 2013 at 7:54 am
Hello, I would be grateful if anyone could help me on my question sent on 15th Oct 2013. This is jeopardising my whole concept of opportunity cost. If we are sacrificing a contribution but then on the other hand we are gaining on the alternate choice. So, the lost contribution should be the NET loss, NOT the full loss, isn’t it? I still think we should charge $1 (4-3) per hour of lost contribution and not the full $4.
Kindly someone comment on this please.
November 24, 2013 at 8:40 am
Sorry your earlier comment was not answered, but it is not possible for us to read all comments on all lectures. If you want to ask a question of a tutor (as opposed to just making a comment) then it is best asked on the ‘Ask ACCA Tutor’ forums – questions there are always answered within 24 hours.
Your earlier comment is replied to below.
November 25, 2013 at 6:45 am
Thank you very much Sir, I really appreciate, ok, next time I’ll post on forums.
Thank you for the below reply I have now understood. This is the best ACCA website I’ve ever known. May God bless you and your team.
October 15, 2013 at 2:14 pm
Helo open tuition team, thank you very much for the excellent explanation however I have a small question regarding question 8, I see that Arsian10 raised a similar question on this. For the lost contribution, can’t we calculate it in a similar way like “opportunity cost” ? according to me for every ONE product of Y we can make TWO product of X. So, in that 10h of labour we are sacrificing the manufacture of TWO products X. So, contribution for 2 product X would be $40 wheras contribution for ONE product Y is $30. The lost contribution is therefore $40-$30 = $10. so then transfer pricing = $70 + $10 = $80.
I note that the EXTERNAL price = $100. (having a transfer price of $110 is technically not possible isn’t it?)
I would be very grateful if you could respond to this. Once again thank you very much
November 24, 2013 at 8:35 am
You are perfectly correct that for every one unit of Y that we make we are losing two units of X, and so what we are losing is 2 x $20 = $40.
We are only therefore prepared to make Y provided that we get from Y the $40 that we are losing by not making X’s.
In order to be getting $40 from making Y we need to be charging $70 (the marginal cost) + $40 = $110.
The lost contribution is indeed the opportunity cost – making Y is ‘costing’ them the $40 that they are losing by not being able to make X. It is no different that looking at an ‘opportunity cost’ of $4 per hour (which is the way we usually choose between products when there are limited hours available – key factor analysis).
A transfer price of $110 is perfectly possible! At $100 division A is not prepared to produce product Y for anyone – they prefer to produce product X. If someone (anyone) is prepared to pay $110 (or more) then (and only then) they are quite happy to produce it.
April 11, 2013 at 1:48 pm
i am using the previous books …can any body tell me is that ok or i have to use the new books?any big changes in the exam?
April 11, 2013 at 7:57 pm
Look at the syllabus on the ACCA website. The only real change is the addition of a bit on information for performance management. However there is not much (and there is a chapter in our course notes).
April 11, 2013 at 1:37 pm
very good lectures
April 11, 2013 at 7:32 am
i dont get it question 8….why we took 4/hr as forgone contribution in calculating transfer price of product y???
October 20, 2012 at 11:01 pm
Excellent explanation skills! This Tutor is brilliant, Transfer Pricing is much more clear now for me
September 26, 2012 at 12:35 pm
Very good tutor. Thank you very much!
June 8, 2012 at 9:16 pm
June 8, 2012 at 5:58 pm
please give me reference of transfer pricing past paper…..
June 10, 2012 at 3:14 am
@imboo, lool check the Acca websites for past papers then review the papers year on year or in any order (depends what works for you) to find related questions on Transfer Pricing. Simple! hope that works for you.
April 6, 2012 at 4:37 pm
Thank you, very good tutor!!!
December 4, 2011 at 11:01 pm
i must say i am truly greatful for your help you are a great tutor and i know that i am going into the exam with a lot more information that i can imagine. This tutoring has not only enhance me knowlegably but it has transformed my way of thinking and it is a wealth of knowledge that i can apply througout my entire life mentally, physically and spiritually. God bless
December 4, 2011 at 6:14 am
November 23, 2011 at 4:11 pm
Nearly at the end of watching your F5 lectures – I found you just in time for December 11 exams – – I think
This and all the other lectures have turned everything around for me. Thank you all sooooooo much. :)…..
Happy Christmas too
November 23, 2011 at 7:37 pm
Good luck in Dec exams!
and come back to the forums after, to let us all know how it went
November 23, 2011 at 3:39 pm
mine was not working, i refreshed the page, it worked but stopped at 29 i refreshed again & continued from 29
October 18, 2011 at 2:43 pm
its fool proof.. thank you Open Tuition
September 22, 2011 at 12:11 am
transfer pricing lectures ,stops something needs to be done please
March 30, 2012 at 2:56 pm
@kidodzi, this is good and very very helpful
June 12, 2011 at 7:05 pm
hi admin.. can u plz upload video lectures as f9.. they are the best.. thanx..
June 12, 2011 at 5:36 pm
it stops at 29th minute there is some problem with it all are working perfect except fo this
May 26, 2011 at 6:54 pm
great video lecture..I understand TP now..
May 25, 2011 at 1:41 pm
May 22, 2011 at 8:03 am
This is brilliant, Admin. Cant we have this genius to deliver for all the chapters? Also could you please advise which book does the tutor refer to? As I have got BPP text? Many thanks,
May 22, 2011 at 9:52 am
Lectures are based on opentuition course notes
May 15, 2011 at 11:07 am
open tuition iz myy onlyy hope which will help mee too pass the exams..
April 30, 2011 at 3:37 pm
Thank you so much opentuition.
March 15, 2011 at 1:45 pm
Brilliant!!! Thanks opentuition
September 4, 2010 at 8:41 am
i’ve never come upon the “pause” problem, just make sure your internet speed is Ok~
Excellent lecture~Excellent Opentuition!
Thank you so much~
July 20, 2010 at 7:36 pm
I have problem accessing audio lectures on employment of paper F4 can you please help?
June 12, 2010 at 9:24 am
What you can do when lectures media stops while you are still at it is;Open the intended lecture in a new tab,click play and leave it for 1 to 3 seconds and pause the lecture and let it rest for sometime.
Depending on the speed of your internet connection the lecture should download in less than a 2 minutes,after which you would not even require the internet connection to enjoy that particular lecture.
Hope this makes sense.I never had problems with the lectures.
Thumbs up Opentuition!
June 9, 2010 at 9:37 pm
Very helpfull in understandig – Great material
May 27, 2010 at 8:47 am
no lecture problem guys i watched full video of 43 mints
May 26, 2010 at 7:53 pm
well there is really some problem sir…in my computer also it stops on 12th min….plz do something..
May 25, 2010 at 10:32 pm
May 24, 2010 at 8:42 am
@ vinny: there is something wrong with your internet connection..I have also checked lecture on my hand…& its running fine…
May 24, 2010 at 7:28 am
vinny: something on your PC is wrong,
May 23, 2010 at 11:23 pm
trying to open the lectures for the transfer pricing but it is not opening pls wat is wrong
May 23, 2010 at 4:18 pm
what do you mean, as stop?
evans okai-amoako says
May 23, 2010 at 4:17 pm
the lectures as stop.why?
May 21, 2010 at 4:06 pm
lecture is fine.. yep, try later!
April 15, 2011 at 6:46 pm
Mine stops at 4th minutes, will try later as adviced.
April 15, 2011 at 7:56 pm
wait for the video to load, if you are on slow internet connection, before you press play
May 21, 2010 at 3:27 pm
mine stops at the 12th minute. Do you still think its internally related? I will try later though
thanks for the wonderful and much appreciated help
May 19, 2010 at 6:24 pm
it’s your internal problem.. or server is overloaded
lecture is OK
May 19, 2010 at 3:40 pm
The transfer pricing lecture stops in the 29th minute……Please help!!
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