• Profile photo of John Moffat says

      If we knew the receivables at the beginning and end of the year, then we would add them together and divide by two to get the average. However we are usually only given them at the end of the year and so we have no choice but to use the end of year figures.

  1. avatar says

    Dear John,

    In the example, what is the difference of cost of goods and cost of production? Is my understanding correct – cost of goods is the total amount of goods purchased during a year. Cost of production is all the costs to bring raw materials to WIP (raw material+any expenses that are needed to bring raw materials to WIP)?

    • Profile photo of John Moffat says

      Half correct :-)

      Cost of production is the total of all the costs incurred in producing the goods.
      Cost of goods sold is the cost of those goods that were actually sold.

      (We do not sell everything we produce because some of them are still in inventory at the end of the year)

    • Profile photo of John Moffat says

      The lectures are not downloadable and can only be watched online. It is the only way that we can keep this website free of charge.
      (You can download and print the Course Notes that go with the lectures.)

  2. avatar says

    Hi Sir,

    I already printed the notes back in May 2014. In the syllabus guide, it says no changes except rearrangement of syllabus sections(section on cost of capital is now part of business finance section) Did you make any changes to the notes to reflect the aforementioned change or just updated the date to Dec 2014? If the notes(June 2014 one and current dec 2014 one) are 100% identical, then I won’t waste paper and ink to print them again. Thanks

  3. avatar says

    I’m unable to view lectures since yday and my Internet connection is ok as I can play videos frm other websites. Pls help. I used same internet connection to view d lectures same yday, trief opening d nxt one but couldn’t.

  4. avatar says

    Hello sir for the calculation we need to consider the credit sales and credit purchases since there is no clarification what is credit and what is cash sales how we will assume?
    In the question given just a Receivables but we need to consider the average receivables so how can e take avg receivables
    Plz advise me thanks in advance

    • Profile photo of John Moffat says

      You have to make the most sensible use of the information available.

      If you are not told the split between credit sales and cash sales, then you have no choice but to assume that all sales are on credit. The same applies to purchases.

      In a perfect world you would use average receivables and payables, but again, in the exam you must make the most sensible use of the information available and usually you are only given the receivables and payables at the end of the year.

  5. avatar says

    only Opentuition Notes are enough???…cuz when we compare these Notes to other texts(kaplan,bpp,emile etc etc),they seem nothing to them with respect to both,length and expandable explanation.However,other texts are much scary as well as compared to OT text.Please,put some light on it,plus,how to tackle with those giant texts and score good marks in theory?Give some tips. :)

    • Profile photo of John Moffat says

      Our Course Notes are not meant to be Study Texts (as we make very clear) – they are Course Notes to be used with the lectures.
      The notes and lectures contain enough to be able to pass the exam well, provided that you really understand them and provided that you practice lots of questions (preferably from one of the Revision/Exam Kits from one of the approved publishers).
      Best is to use the Study Text more as a reference book for any topics that you are unsure about after watching the lectures.

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