Hello John please I wanted to ask that in the exam if we are asked questions on quantitative analysis in budgeting please how do we know that we are supposed to use High-Low method or Learning Curve. Will it be specified in the exam?

There is no connection between high-low and learning curves. They are completely different even though they are both quantitative techniques.

Maybe you are really asking about high-low and regression analysis, in which case it will be very clear which from the question.

I assume that you have a Revision Kit from one of the ACCA approved publishers (if not then it is vital you buy one). They are full of past exam and other exam-standard questions and so when you have practiced them all you will see how you will know what each question is testing you on.

There is no special rule. You can use variances in the normal way to calculate the actual time taken, and then you can calculate the learning rate in the way that I show in the lectures on learning curves.

If you are referring to a specific question then say which one and I will then be able to explain better.

Antilogarithms are not in the syllabus and are not examined.

In theory you could be asked to calculate ‘b’ using the log button on your calculator, but it has never been asked (you have always been given ‘b’ in exam questions).

Everything that can be asked is covered in my lectures.

vjkhan says

Hello Sir. For 4th unit, the effect will be r2. If it is for 8th unit, the effect will be r3. Right ?

John Moffat says

Correct 🙂

vikulchik07 says

Hello!

If we calculate learning rate as 84.375% it doesn’t work, 80* 84.375% is not 55 h.

Or do I not understand something?

Thanks in advance!

Best regards,

Victoria

vikulchik07 says

I think I understood =)

Thanks!

John Moffat says

I am pleased that you now understand.

ketra1 says

Hello John please I wanted to ask that in the exam if we are asked questions on quantitative analysis in budgeting please how do we know that we are supposed to use High-Low method or Learning Curve. Will it be specified in the exam?

John Moffat says

There is no connection between high-low and learning curves. They are completely different even though they are both quantitative techniques.

Maybe you are really asking about high-low and regression analysis, in which case it will be very clear which from the question.

I assume that you have a Revision Kit from one of the ACCA approved publishers (if not then it is vital you buy one). They are full of past exam and other exam-standard questions and so when you have practiced them all you will see how you will know what each question is testing you on.

ketra1 says

Ok

Thank you very much

cyen says

Hi John

Can I say we only can calculate the learning rate if the time given is the average time per unit?

John Moffat says

Either that or there is enough information for you to be able to calculate the average time per unit.

khavipriya12 says

Hello Mr. John, can you please explain the way in which we calculate the learning rate using the labour rate variances?

John Moffat says

There is no special rule. You can use variances in the normal way to calculate the actual time taken, and then you can calculate the learning rate in the way that I show in the lectures on learning curves.

If you are referring to a specific question then say which one and I will then be able to explain better.

khavipriya12 says

Direct labour $ 25 per hour

Month batches sold efficiency variance F\A

July 1 NIL

Aug 1 115 F

Sept 2 265 F

Oct 4 648 F

Nov 8 1056 F

Dec 16 1198 F

REQUIRED:

Calculation of learning rate and determination of the steady state.

John Moffat says

Sorry, but this question as you have typed it could not be asked in Paper PM.

(In future please ask questions like this in the Ask the Tutor Forum and not as a comment on a lecture)

khavipriya12 says

ok, Sir Thank you!

sharanya123 says

is anti logarithms and algebraic approach to logarithms tested ?? as you haven’t posted any video on it ..

it was there in the bpp text book.

John Moffat says

Antilogarithms are not in the syllabus and are not examined.

In theory you could be asked to calculate ‘b’ using the log button on your calculator, but it has never been asked (you have always been given ‘b’ in exam questions).

Everything that can be asked is covered in my lectures.

sharanya123 says

Thank you.

alie2018 says

Understood sir. Thanks

accakeisha says

If the time for 1St – 100 hrs

The avg time for 4th – 50 hrs

Then the learning rate would be

100 x r2 = 50

r2 = 50/100

r2=0.50

r= square root of 0.50

Which is 0.7071 or 70.71%

Is that correct??

John Moffat says

Yes – that is correct 🙂

alie2018 says

Absolutely right. Thanks

accakeisha says

i understood everything up until the part where you used the example of 4 units to find the learning rate. can’t quite get it.

John Moffat says

You will have to say which bit you did not get!

accakeisha says

The doubling effect of using r2

dimple4455 says

You know rule right that if the cumulative profits doubles then the average time taken per unit will fall

so for making 2nd unit which is double of 1st unit it will be

taken as r.

for the 4th unit it would be r*r which would be R^2

we know that 100 * r^2=50

so r=root of 0.50

r=70.71%