APM Revision lectures P5 June 2010 Question 1
ACCA P5 Lecture June 2010 Question 1
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They seem to have taken P5 June 2010 questions down from the ACCA site.
Search Google using something like:
ACCA P5 June 2010
and you will find it tucked away in the ACCA site.
What if i apportion the “other operating costs” on basis of activity level…..i.e. for example for Advertising i do 3720/17200 x 1075000 ; and for
Recruitment i do 4680/17200 x 1075000 ; and for
IT support i do 8800/17200 x 1075000 ……and
The same apportionment for Sub contracted consultations for each category …..i am of mind that the other operating costs should not be absorbed to each consultation type at the same absorption rate….as they are of different nature
As the ACCA answer says: Tutor note: Any reasonable method for allocating operating costs was given credit. Here, chargeable days have been used but allocating by the number of consultants in each area or the number of consultations (inc BDA) were also accepted.
So reasonable alternatives are fine.
i think, if we assume that other operating costs are fixed regardless of the chargeable days, then ACCA answer reflects the treatment for a fixed cost.
Hi,
I am sitting this paper for the first time. This is a really good way of getting of being shown how to dissect the question and have how to stucture the answer. More importantly the approach to this type of question is not to feel rushed but read and digest quickly without the panic.
Big thanks to the lecturer on the pod cast!
I am really grateful for this.
Question to open tuition- Will you having further sessions like these for P5 exam questions?
Thank you
Devi Steven