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Thank You, Sir.
Therefore, we could state the current tax as accounting estimate as well as the deferred tax assuming that the tax rate changes in the future.I did not really get what you have mentioned by stating the question as too theoretical which is now practical. May I know whether you have meant that the income tax standard is more tested numerically rather than theoretically?
Thank you so much for the information, Sir.
Therefore, If I have already booked my professional level paper along with my outstanding skill level paper then it may not affect my results (like not publishing the results) that will be released in the future, right?
Ok, Thank you for your response, Sir.
Sir, I would appreciate if you could provide me an updated study material for AA exam.
Oh, ok, Thank you, Sir, it was a doubt in my mind for a long time, and now it is cleared.
Sir, Therefore when the company purchases raw materials we value them by using FIFO, LIFO, and weighted average cost( any one of the three methods). Moreover, when the raw materials get into the production stage and become finished goods we value them again under either marginal costing or absorption costing since they have absorbed additional costs apart from the purchase ( cost of production )
Sir, Apart from the valuation of inventory in both methods(absorption and marginal costing) we consider it for the preparation of the Budgeted profit statement, right? In addition, I assume that this budgeted profit statement is prepared after the actual results have occurred, so effectively, it is the comparison between a flexible budget and actual results, right?
Sir, Could you please tell me what I have understood and assumed is correct or not and where I need to make changes in my understanding if it was wrong?
Thank you very much, Sir, for the clarification of my doubt.
Thank you very much, Sir, for providing free excellent lectures for ACCA students.
Ok, Thank you, Sir, Now I have understood where I made the mistake.
Thank you very much for your response, Sir and for providing free excellent lectures for ACCA students.
Sir, I have taken this question from one of the revision kits only, however, they had just shown the calculations but there were no explanations for this question, that’s why I have asked this question, Sir.
The answer is 8.67%, when I did it myself I got 6.43%, and now I have understood where I made the mistake.
Thank you very much for your response, Sir, and for providing free excellent lectures for ACCA students.
Yes, I did watch your lectures, Now my doubt is almost cleared, Sir. Sir, as a result, do we include the total cost of inventory derived from either EOQ( if it is a trading concern that only buys and sells goods or EBQ( If it is a manufacturing unit) as a distribution cost in our financial statements(P&L)?
Thank you, Sir. Sir, as per you have mentioned, in the management accounting paper, we only consider the cost for determining the selling price of a product but still I have doubt in it. For illustration,
we have a factory where we produce pencils and the rent for that factory is $1000 which is a fixed cost, furthermore, the cost of producing a pencil is $1 which is a variable cost since we consider that all direct costs are variable costs, and all production overheads are fixed cost. In addition, we know that the production costs = prime cost + production overheads or indirect costs.
So, in this case how do we determine the selling price of a pencil if we have produced only one unit of a pencil in our factory?