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I got
Section A
1. 50mk Report – Balance Score Card , define its benefits in a note, assess feedback of the managers (found this hard), kpis on internal processes of a manufacturer in regards to late delivery and incorrect quantity received by stores, benefits of ERP with the scenarios they laid out.Section B
2. ABB/ABC (super hard) , and finally which items to discontinue.3. Disadvantage of transfer pricing based on market price. And main question- planning vs operational variance, evaluate whether the Divisional Manager should get a bonus.
This was a hard exam (I hate ABC). I do wish I pass. Let’s hope. (I studied from another place, but love to revisit opentuitions now and then).
All the best everyone…
Greetings. Disclaimer: I did not study from open tuitions for SBL, but I have studied in the past for many other subjects, so thus I visited this forum. There is always something useful from this good website.
I got the talent management, diversified board version question paper.
Thankgoodness I did not get the other version. Seems tough looking at those questions. Saved ! (if I get a pass God willing).I found most of the questions easy to understand, which is very important, otherwise this part messes many people up. However, as stated by some above, I didn’t find much use of models and frameworks to apply upon the questions, in order to answer them. But models and frameworks are just a tool to help you answer questions quicker. They are never compulsory to use.
Like always, I was never able to finish the required amount of points needed as per total marks alloted. However, to compensate – I tried my best to integrate with the preseen, etc (NCTech’s vision, mission and values were my main resort always) to produce quality points , and working on a good professional answer layout (obtained from mock feedbacks) and trying to apply relevant professional skills like skepticism to bridge the score card, and gain those bonus marks. To the one who asked if the skepticism was to be applied on the disadvantages listed of talent management – I thought the same as well.
Advise to all: practice as many Mocks (especially personally marked by a professional marker) as possible. For SBL, this really will help fix your weaknesses. So invest in it. Only upon attempting my 5th mock I finally passed by a few marks.
Let’s hope we all past the actual exam.
Regards,
Well wisher.I have watched through all your lectures not very recently but a while back; but the chapters were so many, I tend to forget some of them at times. Apologies. Bear with me.
Thankyou for that clarification and revision.
Why/how does using a lower level of current assets to generate revenue = an aggressive working capital investment policy. A higher level use of current asset = conservative working capital investment policy.
Just answer me briefly then this important question as well.
Thankyou for your patience.
Good day sir.
If you were more elaborate why 90 days was of no relevance, it would help us understand better.
I just realized my error. The 90days are for payables. Whereas these are talking about receivables. Otherwise Q.76-80 are relevant to the scenario elaborated at the beginning.Thankyou sir.
Second method:
So ’30’ is basically the months of receivables saved (90 days reduced to 60 days, 90-60=30) So I used that saved receivable days directly to multiply with the 25m sales x 0.1 : and find out the savings in terms of amount, instead of the longer procedure- first find amount for 60 days, then minus from 90days amount.
In the first paragraph what I meant was that if you are selling but not doing good in the receivables section. For eg: you issue an invoice of $100, but the customer returns back $75 when the time for collection comes and makes another order. And if your sales staff just is focused to show sales for his commission, he will purchase again the goods and make another $100 invoice despite the previous invoice not being cleared. And this difference with time will keep on increasing. Thus, overtrading.
You have to pay to your suppliers ontime – but because of this cycle – you will eventually lack cash to pay off your suppliers because your customers kept on their habit of sending less money each time and your sales staff overtrading with them by issuing new invoices just to show how much sales he has done, and not caring about the receivables being cleared in order to pay the suppliers. Thus, increasing levels of current liabilities becomes a symtom of overtrading.
You said:
“Higher sales means there is the need to carry more inventory”So is that not a sign of overcapitalization instead of overtrading(undercapitalization)? We having more working capital with us than necessary ?
Ok I misunderstood. I thought that if the entire question only mentions working capital – then if t0 is involved having working capital outflow – it will be considered npv calculation not pv calculation. Why ? Because question showed a world only containing working capital. And no other outflow like investment etc.
But you are teaching if I am not misunderstanding – that even if the question mentions working capital and no other details like investment, npv can only be calculated if those other details are present, it is a necessity for npv. Otherwise we consider question is focused on pv even if t0 containing a working capital outflow (ie negative outflow).
I was just rehearsing for you to check my summary whether I understood you
correctly ?You said:
113 The answer is not calculating the NPV because it is only asking for the PV of the working capital flows. The working capital flows include an outflow at time 0. (For the NPV we would need to know all of the flows relating to the project).My question is – if the working capital flow include an outflow at time 0 – won’t that be considered the NPV because all of the flows relating to the project are now being considered- meaning time 0’s negative content as well.
I see…
113) So if working capital outflow begins at T0 it won’t be considered NPV calculation, only unless a capital investment is made at T0.
115) $10,000 was not working capital but capital investment.
It’s edition Sept 2022 – jun 2023.
113) A project has the following cash inflows
114) AW Co needs to have $100,000 working capital…
115) NCW Co is considering investing $10,000 immediately…
3) Why make the headache of creating delivery note if its a replica of despatch note. Only despatch note should be required. Hand over responsibility to sales staff to create delivery note called despatch note – which will be shown at security gate and tallied with goods, and later signed by customer as well. All work can be completed by despatch note thus making a seperate delivery note redundant.
1) I think you forgot to complete the sentence in sentence no.2
2) So only delivery note has to be signed by customer. Not despatch note. Thanks for clarification.
Could you please elaborate with an example ? I am not understanding these brief explanations.
That’s what I thought. So why is the “interest paid” from the Trial Balance included in the addition to arrive at the final finance cost within SOPL ?
Thats what Im saying. Its just you explained otherwise in the Practice question test on this website for Chpt5 IAS16. You can refer to double check. Perhaps it was a mistake needing correction, or you can explain to me my fault.
Sorry for the late response, I wish Open tuitions had a feature where they would automatically send an email notification if someone replied to a thread that we made or a comment posted long back.
I will see to it God Willing, that I try your advise for the next subject I do and experience the difference. I already reached Chapter 22 using the current method that I learnt from a private institute before discovering opentuitions.
Thankyou for the Advice sir. I learnt this method of doing one lecture then referring to the revision kit, and then moving onto next lecture before again doing the revision kit – from a private institute I attended, before discovering opentuitions. They taught me in a sense “to jog”. But then I discovered these problems I faced at times that you clearly pointed out. There seems to be both advantages and disadvantages. I have never tried your advice. Now I have already reached Chapter 21-22. So I will try to implement your advice with the next subject I do God willing, and experience the difference.
I only just noticed you replied today. Sorry as well for the delay in my response time.
