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Questions to ask regarding PYQs (Dec 2008 – June 2011)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Questions to ask regarding PYQs (Dec 2008 – June 2011)

  • This topic has 10 replies, 2 voices, and was last updated 11 years ago by Ken Garrett.
Viewing 11 posts - 1 through 11 (of 11 total)
  • Author
    Posts
  • November 28, 2013 at 4:17 pm #148319
    maryamlukman
    Member
    • Topics: 5
    • Replies: 13
    • ☆

    Hello John,
    I have attempted some of the past years and have been referring to ACCA given answers. These are some questions which has made me in confusing-state, after attempting them, and would like to gain P5 knowledge more. Please enlighten me on the following issues:
    1) December 2008 – The Ornamental Company (TOC) – Q5 (b)
    I have attempted this question. It’s just that after referring to this ACCA answer, I was not sure how they calculate variable overhead cost; for material and labour related for the current basis for Fountain and Goblin. I can’t get the $90 and $157.50 for the Fountain and $15 and $26.25 for the Goblin. I really hope you can explain to me if this calculation really crucial in this question? because I just take the given figure of total variable costs in order to get contribution. As for me, I don’t think this calculation matters most. Please enlighten me 🙂

    2) December 2009, Benjamin Education College (BEC) Question 1 (ii) (asking on Fitzgerald & Moon’s building block model- Dimensions of Performance)
    Referring to ACCA answer, can you please explain to me what is it meant by ‘block delivery’ under Flexibility answer?
    This answer was explaining the number of different modes of delivery offered to students of BEC for e.g. full-time, weekend, and there is this block delivery words, which I can’t understand.

    3) June 2011 – JHK Coffee Machines Co. – Question 1 (b) the two methods discussed to calculate TP
    For answer under Market based pricing, in the ACCA Answer, the last paragraph, it was stated “It should be noted that the current quote from the outsourcer demands a minimum volume of work and so their work may need to be repriced.” <- I can’t understand these phrases. I was asking if that explained; since the outsourcer(local engineering firm) has quoted a flat price of $200/warranty service repair provided they obtain a contract for ALL of the warranty repairs from JHK, is it meant if $200 is to compare with equivalent contribution to current recharge agreement (service division being paid from M/S division)of 10m(annual fee)/39600(9%x440k) repairs=$252.53,so, the $200/warranty repair is TOO LOW for all warranty repairs from JHK(service division) to get from the outsourcer if it obtained the contract? Please explain

    4) June 2010 – LGHD – Question 3;
    (ii) What is meant by ‘subsidiary’ under effectiveness of ACCA answer? in which it explains Effectiveness requires the achievement of the objectives (both principal and subsidiary)? Is subsidiary refers to all parties that can be categorised as recipients and agents? Please enlighten me 🙂

    (iii) under Perishability ACCA answer, these phrases made me confused; ‘Will there be any provision in the contract to ensure that the contractors will provide additional help – especially during the initial two year period?’
    My question is what is it meant by ‘additional help’ above?Is it explaining because of the extreme weather conditions (hot or cold) lead to an overload of the air-conditioning units, so additional help here means if the contractors could provide extra air-conditioners? in case of the above weather conditions? I am not sure about these.

    Will be doing more past years and would like to seek you for reference if anything I don’t quite understand, since you are the only tutor I have for now. Thank you for your time 🙂 Have a nice day!

    Thanks John,

    November 29, 2013 at 10:35 am #148433
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    1) December 2008 – The Ornamental Company (TOC) – Q5 (b)
    I have attempted this question. It’s just that after referring to this ACCA answer, I was not sure how they calculate variable overhead cost; for material and labour related for the current basis for Fountain and Goblin. I can’t get the $90 and $157.50 for the Fountain and $15 and $26.25 for the Goblin. I really hope you can explain to me if this calculation really crucial in this question? because I just take the given figure of total variable costs in order to get contribution. As for me, I don’t think this calculation matters most. Please enlighten me 🙂

    >> Total material costs = 450 + 150 + 1,200 = 1,800,000
    30% of TOC relate to material ie 720,000. This will be absorbed using material costs.
    Therefore TOC per fountain relating to material = 450,000/2000 x 720,000/1,800,000 = 90. Similarly for labout and the Goblin

    2) December 2009, Benjamin Education College (BEC) Question 1 (ii) (asking on Fitzgerald & Moon’s building block model- Dimensions of Performance)
    Referring to ACCA answer, can you please explain to me what is it meant by ‘block delivery’ under Flexibility answer?
    This answer was explaining the number of different modes of delivery offered to students of BEC for e.g. full-time, weekend, and there is this block delivery words, which I can’t understand.

    >>Block delivery would be training delivered over, say, a block of 5 days – ie. a full week.

    3) June 2011 – JHK Coffee Machines Co. – Question 1 (b) the two methods discussed to calculate TP
    For answer under Market based pricing, in the ACCA Answer, the last paragraph, it was stated “It should be noted that the current quote from the outsourcer demands a minimum volume of work and so their work may need to be repriced.” <- I can’t understand these phrases. I was asking if that explained; since the outsourcer(local engineering firm) has quoted a flat price of $200/warranty service repair provided they obtain a contract for ALL of the warranty repairs from JHK, is it meant if $200 is to compare with equivalent contribution to current recharge agreement (service division being paid from M/S division)of 10m(annual fee)/39600(9%x440k) repairs=$252.53,so, the $200/warranty repair is TOO LOW for all warranty repairs from JHK(service division) to get from the outsourcer if it obtained the contract? Please explain

    >>The outsourcer will charge $200/warranty repair but requires all warranty work is outsourced. If some warranty work were carried out internally, and the outsourcer got the extra, then they would presumably want to charge more than $200.

    4) June 2010 – LGHD – Question 3;
    (ii) What is meant by ‘subsidiary’ under effectiveness of ACCA answer? in which it explains Effectiveness requires the achievement of the objectives (both principal and subsidiary)? Is subsidiary refers to all parties that can be categorised as recipients and agents? Please enlighten me 🙂

    >>A subsidiary objective is simply one that is of less importance than a principal objective. For example, better heating/ventilation might be a principal objective and noise reduction a subsidiary one.

    (iii) under Perishability ACCA answer, these phrases made me confused; ‘Will there be any provision in the contract to ensure that the contractors will provide additional help – especially during the initial two year period?’
    My question is what is it meant by ‘additional help’ above?Is it explaining because of the extreme weather conditions (hot or cold) lead to an overload of the air-conditioning units, so additional help here means if the contractors could provide extra air-conditioners? in case of the above weather conditions? I am not sure about these.

    >>Perishability means that a service cannot be stored. In extreme weather, there is likely to be high demand for the services of engineers. This can be met only by overtime/temporary employees. With a product, you can meet high demand by making steadily through the year and using material put of inventory. If additional help had been promised during the first two years (I assume repairs and maintenance) then there could be problems supplying that promptly and economically.

    November 29, 2013 at 1:53 pm #148468
    maryamlukman
    Member
    • Topics: 5
    • Replies: 13
    • ☆

    sorry gromit.. I watched p5 lecture.. thought the lecturer was John Moffat. Don’t know that it was you. By the way, thanks!

    November 29, 2013 at 2:21 pm #148475
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    Lecturer is John, but I now deal with P5 queries. No probs. Glad it was helpful.

    November 29, 2013 at 3:28 pm #148483
    maryamlukman
    Member
    • Topics: 5
    • Replies: 13
    • ☆

    Thank you for the above knowledge-enlightenment. Understood them already. Here it goes, another question December 2006, I just want to confirm about the formula being used in this question.

    1) December 2006 – Vision – Question (a) Calculation on the profit gap at 30 November 2009
    For calculation of Birdcam-V, since the Question stated that if Sales Price decreases/increases Sales Unit will increases/decreases as well, therefore the solution has stated the calculation of OPTIMUM SALES QUANTITY and SALES PRICE. Solution stated the usage of Demand Curve Formula of P= a+bQ and Marginal Revenue(MR) Formula (which I am not sure what is the formula for real but I understand the usage is to gain the number of units(Quantity) that maximises profits. ) since I think the solutions just gave me some calculation problems, since it has stated that MR Formula, MR = a-2bQ. Is MR=a-2bQ is the right formula? since I though the real formula was MR=a+2bQ. Which one was right, really? getting confused already. Please enlighten me on this. Thanks 🙂

    November 29, 2013 at 5:35 pm #148510
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    The formula linking P and Q can be written as P = a + bQ, but you will realise that to sell more items (ie Q increases) P will have to decrease. So b must be negative

    If a = 10,000 and b = -3, the formula would be: P = a – 3Q. The important thing is to end up with a negative in front of the Q term. Some people write the formula as P = a – bQ to remind them of that.

    Similarly, MR can be written as MR = a + 2bQ, but again b will be negative. IN the example above, MR = 10,000 – 2 x 3 x Q.

    Again, what matters is that the Q term ends up with a negative in front of it.

    November 29, 2013 at 5:56 pm #148512
    maryamlukman
    Member
    • Topics: 5
    • Replies: 13
    • ☆

    oh now I understand. That’s why I really thought the formula was a (+) equation and was confused with the negative equation given in the solution of mine. Okay, I should have remembered that. Thanks with the example.

    In the question I attempted, it has also given the figures just like you did, that’s why I was confused since b= -3(if use, your example above) so the equation should have become + since (-)(-)= +. So, here, you mean that we should have use the number of b, regardless whether it’s negative three, or positive three, we should have put the number(three) in the equation since what matters is that the Q terms end up with a negative in front of it, right? okay. got it already. thank you very much!

    November 29, 2013 at 11:33 pm #148560
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    Grreat

    December 3, 2013 at 1:09 pm #149625
    maryamlukman
    Member
    • Topics: 5
    • Replies: 13
    • ☆

    Hello gromit,
    Still got some confusions when I attempted June 2009 – McIntyre Resort (MR)
    for (a)(i), I don’t understand the answer when it became TR=760X – 0.25X2 and MR= 760 – 0.5X, but I can say here that I understood how to arrive at Px=760 – 0.25X. Please help me.. 🙁

    December 3, 2013 at 1:10 pm #149626
    maryamlukman
    Member
    • Topics: 5
    • Replies: 13
    • ☆

    McIntyre Resort is Question 4 gromit.. thanks

    December 3, 2013 at 2:42 pm #149727
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    Going from TR to MR requires the mathematical technique of differentiation. You don’t need to know it now, so don’t worry about it.

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