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ACCA F2 Semi-Variable Costs – Regression analysis
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Great Explanation…Thanks alot Mr. John!
As i understand regression method is only to overcome the drawback of high low method, give the point that can approximately across all our observation…
Am i right Sir! as my understanding…
Its more than that 馃檪
Regression analysis is the most accurate way of finding the relationship between two variables (assuming that it is more or less linear). The high-low method is simply a quick approximation that can lead to very inaccurate results.
and also this analysis is more accurate if the degree of correlation between x , y is high. Now i understand better after taking the next lecture….Thanks for your support.
Interesting lectures. Very easy to understand. Thank you a lot Mr Moffat!
You are welcome, Arnaud.
Thank you very much for the lectures. I have been learning a lot since I started studying with OT and the most important it is that I am really enjoy doing it.
Thats great, thank you 馃檪
Thank you 馃檪
Where did u get N=7 in Example 2???
I assume that you had the example in front of you (in the free Course Notes that are needed to watch the lectures).
In which case you will se that there are 7 sets of observations – January through to July. N is the number of sets of observations.
Thank you. My mistake
No problem – you are welcome 馃檪
Hello, Mr. Moffat
I am trying to understand as to how you came across the way to get back the variable cost (b) and the fixed cost (a) back into its actual cost, as in if we never did the substituting to make the arithmetic quicker. Just to see if I was right, is this because if I transposed the formulae “y = a + bx” to suit ‘a’ and ‘b’, as in: a= y – b/x and b = y/x – a,
– in a’s case you would only have to multiply by 1000 because the ‘y’ costs in the formulae were not being divided by the ‘x’ units.
-and in b’s case you would have to multiply by 1000 (y costs) and also divide by 100 (x units) because ‘y’ was being divided by ‘x’. ?
That is correct 馃檪
Ohh, thank you Mr. Moffat :). I really appreciate what you are doing for us.
Sorry sir it was an oversight on my part. I got it now, thank you.
sir, the part where b is calculated and the answer obtained in the calculator is 6.785714286 to how decimal places do we write it as the answer??
Usually 2 (so 6.79) unless the question says different.
(However, you will not be penalised if you write more decimal places!)
Are the formulas for a & b provided in exam or do we have to learn them.?
They are given – you can find the formulae sheet at the front of the OpenTuition Course Notes.
Dear Mr. John,
I don’t quite get why the final b is 67.86 instead of 678.6 because the units are in hundreds.
Please enlighten me.. thank you
I’ve figured it out, thanks 馃檪
Please give me the trick am also lost
It because the units are in hundreds and the costs are in thousands. So we need to multiply by 1000 and divide by 100.
Got it. thanks a lot.
Great 馃檪
HI,
Is public perception matter in the authorization for any post of a organization??????????
This has nothing to do with Paper F2/FMA !
I suggest that you ask yor question in the relevant forum.
Hi, why open tuition have not video lecture for MA1 and FA1?
How often time video lectures are up grated and when….?
I have answered your first question below.
As far as upgrading is concerned, the lectures and notes are reviewed every six months and are updated whenever there is a change in the syllabuses.
Hi, open tuition haven’t video lecture for MAI and FA1.
And…..,your video lectures are very supportive for us but they may be more supportive if simple and easy wording used in them. Thanks.
No – there are no video lectures for MA1 and FA1. We only introduced course notes for these papers recently – if there is the demand then we will produce video lectures when we have the time available.
With regard to the wording, these lectures were recorded in a class of non-English students and the words used are very much the words that are used in the exams.
Hmmmm! Interesting lecture by Mr. John, Though am not doing ACCA for now but I must admit that it’s wonderful and educative to me.
lol Mr John, you are funny in the class room! I remember when I took that lesson in F2 I was going to real classes not online and the tutor simply asked us to open the book and solve the formula without any explanation and the formula actually looks scary but it is easy if it is explained because it is nothing but working out numbers! I studied it on my own at home later and I knew it is simple but he had to explain what these symbols mean!!! I didn’t even know what sigma means, how am I supposed to solve it!!!
Thanks 馃檪
It is us who should thank you Mr John! 馃檪
Thanks alot for the lectures. They are very helpful. But i guess the total of Y should be 425000 and the total of X*Y should be 190500000.
The totals in the lecture are correct. Are you sure that you have got the correct numbers for each of the Y’s, because the total does come to 420. (OK it is really 420,000 but it is more sensible to work in ‘000’s – it makes the arithmetic quicker and does not affect the answer.)
By the way, do we have to study the Regression Analysis? Because I thought they removed it from the syllabus. 馃檪
As it says in the Course Notes, although regression is no longer listed in the syllabus, it is still assumed knowledge from Paper F2. You will not be asked calculations but you are still expected to be aware of the idea.
actually sdmaalex is correct about the total Y’s being 425, because April Cost is 85000 not 80000 in the course notes, Thats why he/she came up with that total. But really good lecture and thanks
Why didnt we do the same with the b;that is multiplying it with 1000 and then devide by 100?it kind of confuses me.
Did you really mean ‘b’ (the variable cost per unit)? If you did, then see my answer to this below.
If you meant to type ‘a’ (the fixed cost) then we only need to multiply by 1000 because the costs were in thousands. (We do not need to divide by 100 because we are not multiplying ‘a’ by the units (which are in 100’s).
Is this John in action? 馃檪 Thank you again for the lectures. You are awesome!
Yes it is, and thank you very much 馃檪
Hi Sir
Why is Variable cost per unit only multiplied by 10 instead of 100 from 6.7857 to 67.86 ?
The costs are in thousands, and so we multiply by 1,000. But then the units are in hundreds, so we divide by 100.
Thanks Opentuition
@latoyah, You are welcome 馃檪
I have Heard today they have removed, correlation, regression, n time series from tha june 2013 syllabus n have added another chapter, Could you please let us know about it. it was just recent update
is this true ?
The syllabus change was announced last year – you can see the new syllabus and the changes on the ACCA website, there are many posts on our website about it, and of course there is a big article in the Student Accountant.
Correlation and regression, and time series have indeed been removed from the syllabus because they are assumed knowledge from Paper F2. The examiner has said that you will not be asked for calculations although you are still expected to know what the topics are.
Basic variances have also been removed – again because they are assumed knowledge – however you can still be asked calculations of basic variances and also understanding the rules for basic variances is necessary to be able to do planning and operational variances.
This had looked really hard before but now i finally understand it. I still hope it dont come on the F5 paper