[ellean]

You can see examinator’s comment to the exam on the acca website. Or look At the exam simulation For f2 on opentuition.com. Unfortunatelt acca does bot provide old questions

[ellean]

Mine was cbe. Heavily covered area are for sure: Variances, budgeting (not cash and capital bdget), type of costs (I had a full exercise divided in three sections, based on the understanding among fixed, variable and semifixed, you have to be able to calculate them for different levels of activities.
Some questions for sure are on wpi, job or batch costing. Process costing was not in my exam. Moreover some qualitative questions (multiple choice) on random topics (sampling, performance, kpis..)

Best of luck for you 😉

[ellean]

just had today the f2 exam and passed with 68%… thanks to opentuition! without John it would have been impossible!

a suggestion for everyone: read opentuition notes beside to watching lectures. Practice Practice Practice! you should buy a revision kit. It is enough (I bought the bpp book, but it was too long and redundant. I took the chance to read a chapter swiftly only after having studied it on Opentuition notes + lectures)

Thanks you guys! your help is blessing

[ellean]

Thank you, I did post there to try some help from other students, but got your!
Hope so! just wondering how much time to invest there!

[ellean]

thank you very much john

[ellean]

moreover: why 40% of may sales are expected to be for cash.
it is calculated for current month? the text says receipts are paid next month after sales! should not be considered at all!

[ellean]

God bless you.
clear to me now!

[ellean]

Oh ok. Thus, if I understand well, i cannot compare figures from act and fixed bdg to figure out if their unit cost is constant (variable) or increasing (fixed cost).

copying bpp data. How could I know if this cost voices are fixed, variables, or sempi variables?

fixed bdg $ actual $
production (units) 2000 3000
revenue ($) 20000 30000
direct material 6000 8500
direct labour 4000 4500
maintenance 1000 1400
depreciation 2000 2200
rent and rates 1500 1600

they say: – material and maintenance are variable
– wage are fixed but treated as variable for effic.-productiviti calculation
– rent and rates and depreciation are fixed.

The point is: could I deduce from this info if costs are fixed or I should need they say it to me? do I need same voices for different levels of activity (flexed vs flexed, bdg vs bdg, act vs act) to base my evaluation on unit cost movement?

thank you again very much
E

[ellean]

Ops John I find the same in your exercise from the lecture. So that I probably am missing something.

Reviewing notes on exercise on flexed bdg, we had:

fixed oh:

10000$ for fixed bdg, with sales=produced units 10000 units
11000$ for actual figures, with sales (notes don’t say = production) = 12000 units

either in this case it does not seem to be fixed 🙁

[ellean]

thnak you very much John.
Unfortunately I cannot copy and paste form the ebook. I saw your lectures and it was clear, but bpp confused me. so I will decide following your method: if they are fixed if fixed bdg and act stay fixed, var if unit cost is constant and semifixed if the unit cost changes among different activity levels.

Just to give you an example of BPP.

depreciation is said to be fixed, but it changes for two different levels of activities! so that it sounds absurd to me.

fixed bdg : $ 2000 on 2000 units produced
actual : $ 2200 on 3000 units!

NB no inventory changes.

it seem to be not fixed either variable! i would say a sami variable. Confused about this way they classify!

regards

[ellean]

Thank you. I was trying another way that for me was a faster mindsetting. Maybe helpufl for the girl, Hopefully!

[ellean]

Could be helpful how am I I am figuring it out ?

given loss 10%

we get

input 100 + 10% loss = 110
loss 10%
and thus get output share at 100% (110 -10)

if we divide input by 110 and we get one unit of input (120) then we only need to multiply it by 100 (output): 120* 100 = 12000 and we get output. Then I can calculate my normal loss by following the exercise note (10% of output)

[ellean]

interesting exercise also for me. Waiting for answer

[ellean]

Thank you very much for your precious help. this is now clear to me!

[ellean]

Ok, so you are confirm that BPP revision kit could be wrong in showing

Holding cost for one unit of inventory for one year = $4.50 × 98% = $4.41
? holding costs = 150 units × $4.41 = $661.50

in the exam I will follow your ex and mantain 4.50 per unit

Thank you very much

E

[ellean]

Really helpful! I need now to practice

Thank you John

[ellean]

thank you very much for your reply. It is now clear to me. Just for check if I well understand, is it right to say:

-the text of the exam will give me a per unit $ (that is the unit value of closing inventory at marginal costing or absorption), then I only will need to multiply it by the units of closing inventory.

– COGS contains by definition variable costs (direct labour, matrial and direct expenses, if any), only within absorption costing I will be considering fixed overheads absorped per unit

– in an exercise with avaluation of inventory with lifo, fifo, or avg inventory (that i need to forget when doing absoprtion and marginal costing exercises), COGS are: (open inventory + production costs ) – closing inventory. In this case the formula of production costs considers ONLY variable costs. But all variable costs, not only raw material issues costed during the exercise of lifo- fifo or weighted avg method.

thank you a lot again

[ellean]

edit:
I mean, in my mind

COGS = beginning inventory + production costs (direct labour + direct material + direct expenses) – ending inventory

is

-beginning and ending inventory come from inventory evaluation calc (lifo/fifo/other method)

-production costs (or somewhere called purchase costs) are direct labour + direct material + direct expenses

in this way: I only add fixed costs in absorption costing method (not in marginal costing), to define the profit. COGS and inventory aren’t affected (since COGS is only direct costs by definition).

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