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Congrats to you to kolina307! Indeed, interpreting ratios for IFRS 5 was a pain, I suspect that I lost marks there too. Nonetheless, the marks are decent.
Thank you so much sir I truly appreciate your help. I will keep that in mind. I can’t tell you how much I value your help. 😀
I initially thought of that, however I was baffled when the answer provided was 1.5 years
Yes sir indeed that was very helpful! 🙂 I did manage the first two steps but didn’t know what to do after deducting the amount that has been paid off from $30000. Anyway the answer I got after following your steps is 17729 but the answer given is 17792. Perhaps it was a printing error :3
Wow sir I would have never thought of that. I honestly didn’t know that the $40000 itself was the Net Present value the whole time! Thank you so much sir!! Hats of to you 🙂
That is the right answer sir. I didn’t know what they meant by increasing market share. Initially I asked my lecturer about it and he said inelastic demand, elastic supply but clearly that is wrong. The answer B is provided by BPP. After consulting my lecturer, he said to follow BPP. Thank you so much for your help! I truly appreciate it. Your help came to me as light in a dark room.
I have one more theoretical question sir. If they asked which of the combinations above would result in maximum profit, without stating whether the organisation wanted to increase market shares, would the same answer still apply?
Once I again I express my highest of gratitude towards you sir!
Why thank you sir, although it was only a progress test. I hope that my finals turn out in such a favorable manner as well. Thank you for your contribution (pun intended) xD Jokes aside, I really really appreciate your help and guidance sir. Without you, I may have given up hope on Management Accounting. Your lectures are very enlightening. May your good deeds let you reap happiness. God bless!
Oh dear it seems that I left out a crucial word, it seems that they wanted equivalent units for materials. Pardon me for making you go through all that trouble Sir John Moffat, as I was typing out this question right before my FMA Progress Test. I really appreciate your help. Oh and sir, I scored 94% on my FMA test today! Credits to you sir.
Thanks Sir John Moffat! With your help I was able to crack the conundrum. I forgot the most basic and fundamental principle of process costing- Output is net of both normal loss and abnormal loss (if any). We must only base our costing on expected loss (as you mentioned earlier). The reason we add abnormal loss to output is to derive normal output because Input= Output+ Normal loss +Abnormal loss,
Hence Input-Normal loss (Normal output) =Output+ Abnormal loss.
It was a matter of realization of the knowledge you have imparted in your process costing lectures (incredible videos by the way!) I’m very grateful for your help sir John Moffat. You are my favorite superhero.
I feel relieved now, although currently in my FMA revision kit (provided by my lecturer) there are a number of questions that combine abnormal loss with opening work in progress, which I find kind of baffling. I fail to comprehend why abnormal losses are added to output (net of normal loss) to derive equivalent units. What happens in the event of having an abnormal gain, how would the equivalent units be affected? Forgive me for my ignorance and I highly appreciate your help Sir John Moffat 😀
I would agree with you because that’s the same answer I picked, but sadly the answer provided for this question is B which has baffled me. I’ve failed to understand why that is the case.
Thank you very much sir! My working was about the same as yours although I wasn’t sure what to do with the expenses. Anyway, based on your answer sir, I can say with conviction that the answer provided by the book from which I did this particular question is wrong. By the way sir, THANK YOU SOOO MUCH for your process costing lectures. It helped me a ton! My lecturer isn’t really competent. You are a blessing to mankind. You should receive a Nobel Prize for your contribution to society. Thank you sir John Moffat, you are my superhero.
No my good man. The question which you have helped me with earlier was regarding accounting for material. If you have answered this question elsewhere on the forum than I apologize for repeating the question. Any help at all would very much be appreciated.
Thank you so much kind sir!!! I didn’t think that you’d need to compensate the weight loss of the material by preparing more material than is required. I totally understand now. Yes it has indeed helped me a lot and it was very easy to understand. You seem to be really good at material costing. I am very grateful for your help.
