APM Revision lectures ACCA P5 Question 4 June 2013
ACCA P5 Question 4 June 2013
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Hi, I’m confused why we need to calculate the housing components (like including the 575k adverse variance and a markup), when question (a) only asks us to evaluate current policy (pros and cons without giving suggestions I believe?)
Thanks Ken for a job well donein the explanation of the Landual Lamp question.
I feel a bit more confident going into the exam on June 5 should Transfer pricing decide to feature in APM.
You’re the best, Gromit. Thank you.
Thanks
I’m a bit confused by what means of an adverse variance of 575000 related to the cost of sales. In my option, an adverse variance of cost of sales should be an actual increase of 575000 in cost of sales, that is a problem we would called, and also called a problem as stated in the scenario. Therefore, we should add the figure of 575000 to the budgeted figure of cost of sales (6902+1302). Is my understanding right? Thanks.
for (c), profit of Housing, Electrical, Assembly are (8617), 335, 2719 respectively, but the total of those three is not 2641, which is he Landual’s group profit. Why is that?
The profit for Housing is (413). The total is now 2641