• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Combined probability matrix Pilot paper Q3

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Combined probability matrix Pilot paper Q3

  • This topic has 0 replies, 1 voice, and was last updated 13 years ago by shiba2912.
Viewing 1 post (of 1 total)
  • Author
    Posts
  • November 19, 2011 at 3:09 pm #50573
    shiba2912
    Member
    • Topics: 2
    • Replies: 2
    • ☆

    Part b (i) (ii).
    (i) A fall of 12% from the current level would result in a unit cost of £41.21 x 88% = £36.26. However, the combined
    probability of this cost level being achieved is only 18% (this can be abstracted from the probability matrix). This might,
    therefore, be seen as a ‘risk seeking’ stance if management decide to proceed with the re-design.

    I want to know how this 18% was calculated.

    (ii) Other members of the management team are not willing to proceed with the re-design if it might lead to a cost increase from the current level. There is a 32% combined probability that the changes could result in a unit cost greater than the
    current level of £41.21. But there is also a 66% likelihood that the unit cost of product A could be less than the current level. This is a ‘risk averse’ stance since management are not swayed by the 66% likelihood that unit costs may fall.

    Here I want to know how 32% and 66% were calculated.

  • Author
    Posts
Viewing 1 post (of 1 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • MikeLittle on Civil Law, Common Law, Criminal Law – ACCA Corporate and Business Law (LW) (ENG)
  • beata443c on Civil Law, Common Law, Criminal Law – ACCA Corporate and Business Law (LW) (ENG)
  • heary123@ on Group SFP – Unrealised profit and inventory in transit – ACCA Financial Reporting (FR)
  • heary123@ on Group SFP – Unrealised profit and inventory in transit – ACCA Financial Reporting (FR)
  • John Moffat on PM Chapter 15 Questions Financial Performance Measurement

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in