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rashard wrote:Anybody got a question on calculating ROI and RI for two divisions?
OMG that was so easy and tricky at the same time. One division had higher ROI than target, and another one had RI higher than it’s target. I think the main point was to distinguish the 2 in terms of assessing the performance of the manager or division. I remember I selected division west
Kevin.shah wrote:Does anyone remember the answer of Section B risk question related to Maximax and maximin.
for maximax you simply select the highest number in the table. don’t need to calculate EV. And for maximin you compare the smallest profits (or contributions) of each project and select the highest one.
aytashi wrote:simk wrote:Did anyone have the veggie pot question? They had asked us to calculate the cost gap and had given the cost per batch and the selling price. I read the situation multiple times but just couldn’t figure out how many units were in each batch (to be able to calculate cost per unit). What did you all do?
no Company 1 used 20% profit margin, and the second one used mark-up
aytashi wrote:I have another MCQ question, which I couldn’t calculate. If someone did answer this question please share how you calculated it. I got confused because I didn’t know how to get budgeted number of units. Here is the question:
At some point I just decided to calculate mix variance using the formula (materials usage – yield variances. ) but still couldn’t get somewhere, because both usage and mix variances use budgeted number of units. how did you calculate usage variance?
yeah 1.39 is the target cost for actual sales. But the question was to calculate the gap. That is concerning me, because I understand that the option I selected was not what was asked
legendary wrote:Material price planning variance = 1,775 Adv
Material price operating variance= 710 Fav<br>Material usage planning variance = 0 (because I could not find any revised usage figure)<br>Material usage operating variance= 600 AdvI also had that case in section c. Did you have materials mix variance question in MCQ?
Erjona wrote:Yess..it is so sad that they put the same question as in September 2020 exam…that was so largely and extensively discussed since it was a disaster:(
Which question? Do they use the same question in different sessions??
anelehhelena wrote:Hi, did anyone get perfect information question.
How much did you get? I cannot remember the how the question went but I know I kept getting negative result so I put 0 in the end.I got 5000$. Information with EV was 109000, and perfect info was 114000. You didn’t have to use directly attributible fixed costs at this point beacuse it was mentioned that profitability table was prepared after fixed costs were deducted.
simk wrote:Did anyone have the veggie pot question? They had asked us to calculate the cost gap and had given the cost per batch and the selling price. I read the situation multiple times but just couldn’t figure out how many units were in each batch (to be able to calculate cost per unit). What did you all do?
I had that question. I got 1.39$. I am not sure if it was correct answer.
The question was :
Company 1 buys soups from Company 2. It wishes to sell 1 pot for 2$, and to earn 20% profit.
Company 2 sent invoice to Company 1 for the batch of soup pots totalling 155$. After calculating it discovered there is a cost gap. Company 2 adds 15% mark-up to the costs.I calculated it as follows:
1) 155$ is cost of purchases for Company 1, which wants to earn 20% profit margin. Which means costs are 80% of sales.
155$=sales*80%
Sales = 193.75$
If sales are 193.75$ and Company 1 wants to sell 1 pot for 2 dollars, it means there approximately 97 pots in a batch.2) Company 2 sells a batch for 155$, which means this number includes costs + 15% mark up of costs.
155= x+0.15x
x= 155/1.15 x=134.78 This is target cost.
Devide it to number of pots= 134.78 / 97= 1.39$.I don’t know how to find the gap. I just stupidly picked 1.39$.
aytashi wrote:This is for students who did not attend in March session.
current ratio = current assets/current liabilities = 1.6/1 = Let’s say 160/100 for easy understanding.
30% of current assets are inventories = 160*0.3 =48
Half of inventories were sold (deduct (48-24) from assets) for cash with 100% mark-up (add 48 to current assets).
Which means :
Now current assets are = 160-24+48= 184
Now current ratio is 184/100 = 1.84 : 1.Someone mentioned that the question was to calculate ratio after reducing liabilities. I might have forgotten the question. Anyways, in this case calculations will be as follows I assume:
After deducting half of inventories from current assets (160-24) you don’t add 48 cash to your assets, but deduct it from your current liabilities:
=(160-24)/100-48 = 136/52 = 34/13
The answer was in the form current ratio = _____:1 . So I believe it was asked to calculate without liabilities, as the answer doesn’t match.
This is for students who did not attend in March session.
Current ratio is 1.6:1. 30% of the current assets are inventories. If the company sells half of it’s inventory all for cash with 100% mark-up, what will the current ratio be?
Got the answer at home. Easy but at the exam nerves usually block your brain ))
One more tricky question was to calculate environmental cost in input/output accounting. I’ve never seen calulation questions related to environmetal topics. Neither in revision kits nor workbook itself (I studied from BPP 2020 book and 2017-2018). So it was a bit confusing.
Product Q uses 2 chemicals – A and B. Scrap materials are disposed at a cost 250 per tonne. During the month 1000 tonnes of A and 1500 tonnes of B were used to produce 50000 tonnes of Product Q. 4 tonnes of Product Q were scraped and were reused in the nexts month’s production. What is the environmental cost?
I have another MCQ question, which I couldn’t calculate. If someone did answer this question please share how you calculated it. I got confused because I didn’t know how to get budgeted number of units. Here is the question:
Question required to calculate materials mix variance.
5 units of Product P requires:
Material A 3 kg at a cost 10$ = 30$
Material B 2 kg at a cost 15$ = 30$Actual production for the month was 100 units which used 120 kg materal in total costing 15000$. (I don’t remember the exact amount, anyways it is still possible to calculate I suppose). There was no price variance.
This is the right approach. Unfortunately I did not understant the question in the exam. Only when I came home and checked elasticity chapter, I realised it was a very easy question. which didn’t even require long calculations…
1 of my Section C cases was calculating operational and planning variance for material price and usage. Price – 4 marks, Usage – 4 marks. Then on the same case one of the questions was to calculate total material revised cost for given month which gave 2 marks. And 1 question was to discuss the performance of the purchasing manager – 10 marks.
