ACCA F5 lectures Download ACCA F5 Dec 2014 Exam Questions
ACCA F5 Dec 2014 Exam Lecture 2
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Hmmn….thank you tutor
In q 7 the lower cost is 36800 not 36880 !
You are wrong!!
You don’t simply take the lowest cost – that would be stupid. You take the cost associated with the lowest production.
I suggest that you watch the free lecture on the high-low method.
Thank you for the comprehensive solutions! I have a question about question 8. When I attempted the test alone, I got the right answer, but my solution was totally different from what I saw in you lecture. Can you please tell me, if I am right or it is just a coincident that I got the right answer. That is my solution:
I first worked out what will the company as a whole lose if A shut – A’s profit:
sales revenue – 2200u*165=363,000
less: costs: marginal: 2200u*100=220,000+fixed costs 10,000=230,000
Profit therefore=133,000
Savings will occur for B: 2200u*(165-140)=55,000
Total: 55,000-133,000= (78,000)
It is a bit longer.
That’s fine 馃檪
Got your point, thank you 馃檪
This does make a lot more sense now, thanks to you both 馃檪
Question 10 – I’m a bit confused as to the shadow price. In the question material Z becomes available at $2 per kg which is the standard cost as stated previously.
This amount isn’t used in the calculation of the answer.
If it was obtained at a different price how would this affect the answer?
In my understanding if the price if different you simply will get different shadow price, because you are solving equations for constraints to get the shadow price. In this case you have nothing to do with prices, the calculation is done for you. This shadow price of 2.8 means that if you increase the limited factor by one unit contribution will increase by 2.8 dollars. So this means that for 20kg the most u will pay is 20*2.8.
I hope I could explain the way you understand 馃檪
Not quite Lilit.
2.80 is the most extra that you will be prepared to pay over and above the current price of 2.00. (the current price is already taken into account when calculating the current contribution).
So to get more of the limited resource you would be prepared to pay up to a maximum of 4.80 (2.80 + 2.00). However this was not asked for – you were simply asked what the extra contribution would be if we got extra at the normal cost of 2.00.