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PM Chapter 1 Questions Activity based costing
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I got 100% for this quiz, Thank sir for your free lectures
Hi Sir,
I got 80%.
The only question I got confused is Q2.
Could you please give an example or kind of deeper explanation on “How the traditional absorption costing tends to Under-Allocate OH cost to low-volume products”?
Dear Sir,
Could you please build bank of OT questions in order that I can pratice more ? At present, the same question appears each time I pratice.
Thank you.
Sorry but no.
You need to buy a Revision Kit from one of the ACCA approved publishers (BPP and Kaplan). They are full of past exam and other exam standard questions in the same format as those in the real exam.
Yes.Thank you for your advise.I wonder that whether there is some of OT question in the real exam be same as those in revision kit or same as past exam ?
I don’t understand what you mean. Some of the questions in the real exam are similar to those in our tests.
Greetings sir. I think you made a mistake In q3. The answer should have been $39.30. Owing to the fact that you took 96, 000 units of Q instead of 9, 600 units in calculating the total other Overheads of Q. If you had used the right units which are 9, 600 units, the answer would have been. $39.30. I hope you review an given me feedback. Thanks in advance
There is no mistake. Other overheads are absorbed on the basis of labour hours and each unit of Q takes 10 hours. 9,600 units a 10 = 96,000 hours.
Hi John
Thank you for the quiz. I can’t figure out where we got the $115200 on overheads. Please assist.thank you
Hi John
I found it, thanks
I am pleased that you found it 馃檪
Thanks so much. This is extremely helpful.
Thank you for your comment 馃檪
hi i need more help in understanding this, can anyone help me please, i am not good in accounting but i am learning.
What is it that you need more help in understanding? Have you watched my free lectures? If anything is not clear to you in the lectures then ask in the Ask the Tutor Forum.
Thank you.. this is really helpful.
Thank you for your comment 馃檪
I’ve watched the lectures but i couldn’t answer Q 1
Have you checked the answer and understand it now?
where is the answer ?
The answers appear if you submit your answers and then ‘review’ the quiz.
Sir can you please explain why in question 3 we have taken no of production run in calculating set up cost instead of taking total production. The overhead itself tells that its the total production setup cost.
Set-up costs are the costs of setting the machines every time there is a production run . It doesn’t make any difference how many units they produce in the production run- they only need to set up the machines for each production run.
Did you watch my free lectures on ABC before attempting the test?
Yes sir i did watched all the lectures.
Great 馃檪 I hope you are now clear about the set-up costs.
IN Q3. I WAS trying to doing no. Of Productions Runs required For product P (2400*13) PRODUCT Q(9600*15) WHY NOT THIS.
NO.OF INSPECTIONS FOR product P (13*5) PRODUCT Q (15*3)
TOTAL LABOUR HOURS WERE RIGHT
got 100%.
amazing tutorials.
Thank you for your comment, and well done 馃檪
thanks sir ,it help a lot
regarding question 4, how come the cost of abc is greater than the benefits. in your lecture, there are 4 adv and only 2 disadv?
Counting the advantages and disadvantages means nothing at all.
The statement says the costs (i.e. in $’s) may be bigger than the benefits (i.e. the savings in $’s).
It does not say that they will be bigger — hopefully they will be lower. But they may (might) be bigger.
I make this very clear in my lecture.
Greetings sir
Sir i did Unterstand only this line That Cost may be bigger than the Benefits.
But i did. Not understand the SECOND LINE?
Might be bigger means that maybe they will be bigger but maybe they will not be bigger.
Sorry By mistake ….i wanted to say thank you
Hello,
Could someone explain me how in the 3rd question did we obtain the ‘115,200’ figure and what does it represent?
Thanks
It is the total number of labour hours ( (2400 x 8) + (9600 x 10) )
Did you watch the free lectures before attempting the test?
I got 100% Thank your for Free Lectures
got 100%.
amazing tutorials.
80percent
Great (but do make sure you have a Revision Kit from one of the ACCA approved publisher. They are full of questions and answers, and question practice is vital to passing the exam).
I got 100%!!!!
Thank you so much for your excellent tutorial.
Thank you for your comment 馃檪
Hello, I just want to know how can ABC analysis help to reduce the “TOTAL” Overhead cost?
Have you not watched the free lecture on ABC, because I explain this in the lecture?
The biggest benefit of ABC is that because it makes us focus on what is causing the overheads to occur, we can look for ways of operating more efficiently and thus save costs.
I give examples of this in the lectures.
Amazing… I scored 100%. Thank U!
Well done 馃檪
Wow. I got all correct in my first attempt. Thanks John for your amazing contribution towards our future. Without your lectures, I won’t be able to clear out my exams. I will consider to donate some pounds to you guys.
Thank you for your comment 馃檪
However, do make sure that you buy a Revision Kit from one of the ACCA approved publishers, because they have lots of past exam and other exam standard questions for practice. It is important to practice lots of questions – just our pick tests is not enough 馃檪
Hello sir. Thanks for your advice. I have already ordered a BPP revision kit and study text. I know study text is not a must, but it is quite helpful when I got confused about a chapter.
You are welcome 馃檪
I did not read the question 3 well. It asked to calculate cost per unit for product Q. But I calculated cost per unit of product P thinking that was asked on the question. Next time I will be more careful for sure. Anyway, thanks to John for putting these questions. You are a rare kind of human being. God bless you John.
Thank you for your comment 馃檪