[Ellis-Sad]

Thank you so much for your teaching Jill. I got a pass and scored well.

Hope you do an Advanced Tax syllabus for OT

Thanks again

Ellis

[Ellis-Sad]

There was something else…

Chapter 16 in the last video seemed to infer there were more videos to watch, but they are not available as it jumps to chapter 17. Are you aware of any missing links/videos at all?

Thanks

[Ellis-Sad]

Great, thanks

[Ellis-Sad]

PLEASE IGNORE – I can see why now!

[Ellis-Sad]

Thank you Jill, that’s great.

I guess my other question is which content within this syllabus do students tend to find most difficult? Got a feeling CGT is one of the hardest…

Thanks

[Ellis-Sad]

I had this as well. With the Retail & Growth division? I didn’t great but could only do what i could do…

They required that we suggest an alternative Transfer Price once the P&L statement had been completed. I ended up saying that Fixed Costs still needed to be covered as the Growth division was running at a large loss while the Retail division was making a huge profit

Managed to get the buzzwords in, ‘Goal Congruence’ but i think they were looking for a policy name like ‘Full Cost Plus’, which i missed…

A very difficult exam it was

[Ellis-Sad]

Ok, but it seems strange that it’s not included in the service costs AT ALL to the organisation under the TA approach. That’s the angle i was coming from. Thanks

[Ellis-Sad]

Thanks for this. I eventually arrived at the same conclusion after looking at another thread. What i would ask is what does happen to the $70 as this is not factored in, in any of the costs, except it is excluded completely?

[Ellis-Sad]

Thanks. Yes i’ve seen this lecture but it might be worth another watch soon.

Exam is on Wednesday. I’ve been through my BPP revision kit i think twice now. I’m about to do my second practice exam probably today. I might have to use tomorrow as a chance to capture some pure knowledge because Monday i’ll need to practice some question techniques, arithmetic again so i’m sharp enough for Wednesday… I might have just as much fun seeing how long i can hold my breath for

[Ellis-Sad]

Ok. Basically i’m stuck on trying to arrive at the TPAR for Procedure A.

Yes, i’ve been trying hard to use this forum as a last resort if i am really REALLY stuck. No problem. Thanks

[Ellis-Sad]

Ah yeah i should have been more clear here. This is from the ACCA pre-Dec mock exam (on the ACCA practice platform) I was quite surprised by it because i’ve not covered it from that angle. I have indeed watched the lecture from John carried out in the Management Accounting syllabus. It doesn’t quite touch on this part though from what i remember.

I see. No problem

Random question, but can i ask….would you say that passing the ACCA is more difficult now than say 10 years ago? And if so, do you have a percentage in mind of how much more difficult it is?

Why do i ask? Because man, have i put a LOT of hours in. Probably closing in now on 135 hrs. A lot of it is just practicing the techniques across this VERY broad spectrum that the syllabus covers, and building up exam technique. I’ve not had a great chance to work on capturing the pure knowledge side of it and still need to cover this. It’s crazy for what is required

[Ellis-Sad]

This is the whole question that i’ve put up above with the whole scenario. I’ll copy & paste below. Thanks.

“What is the throughput accounting ratio for Procedure A (to the nearest two decimal places)?”

[Ellis-Sad]

P.S . Its the top metrics below the different types of staff that relate to Procedure A

Thanks you

[Ellis-Sad]

Hi John,

Sorry to jump in here. I couldn’t help but notice your comment on machine time always being the limiting factor in Throughput Accounting. In the ACCA mock pre-Dec exam i just did, there is a question below which is a B section. But this is suggesting that the bottleneck is not machine, but a surgeon. I’m having trouble trying to calculate the TPAR for Procedure A. Could you kindly explain how we arrive at this? The answer they have is $8.96.

Question: What is the throughput accounting ratio for Procedure A (to the nearest two decimal places)?

Please see below…

Scenario 3

This scenario relates to five questions

Balaji Co is a private hospital offering two types of surgical procedures: A and B. Each uses a pre-operative injection given by a nurse before the surgery. The Managing Director is keen to maximise profits and has heard of ‘throughput accounting’, which may help him do this. The following information is available:

1. All patients go through a five step process, irrespective of which procedure they are having:

–step 1: consultation with the advisor;

–step 2: pre-operative injection and care given by the nurse;

–step 3: anaesthetic given by anaesthetist;

–step 4: procedure performed in theatre by the surgeon;

–step 5: recovery with the recovery specialist.

2. The prices and variable costs of the procedures are as follows:

Procedure A

Procedure B

Price

$2,700.00

$4,250.00

Variable costs

$810.60

$1,120.60

3. $70 of the variable cost for each procedure includes the costs of sterilizing and maintaining the medical equipment and theatre after each procedure. The remaining variable cost is direct materials.

4. There are five members of staff employed by Thin Co. Each works a total of 1,880 hours each per annum. The total salaries are 298,000. The only other hospital costs (comparable to ‘factory costs’ in a traditional manufacturing environment) are general overheads, including the theatre rental costs, amounting to $250,000 per annum.

5. Maximum annual demand for A and B is 600 and 1,200 procedures respectively. Time spent by each of the five different staff members on each procedure is as follows:

Procedure A

hours per procedure

Procedure B

hours per procedure

Advisor

0.8

0.8

Nurse

1.0

1.0

Anesthetist

0.7

1.1

Surgeon

0.75

1.25

Recovery specialist

0.65

0.85

Part hours are shown as decimals e.g. 0·24 hours =14·4 minutes (0·24 x 60)

Surgeon’s hours has been correctly identified as the bottleneck.

[Ellis-Sad]

Anyone there? Hello?

[Ellis-Sad]

Hi,
I have now received the BPP revision kit for PM for 2023-24 having paid £25 for it. Turns out it is pretty much the same as the e-book revision kit i had for 2022-23. Quite annoying but hey ho..
what I need to know now, is does the ACCA offer study resources that cover all of the syllabus itself and that it is free to access? Would i have still needed to buy a separate revision kit?
Also, what’s the advantage of accessing the ACCA study hub for these resources?
Thanks,
Ellis

[Ellis-Sad]

Hi,
Thank you for your reply.
I was told that in order to pass the exam and pass it well, i would need to:
1. watch the lectures with the notes
2. Do the online MCQs at OT after each chapter
3. purchase a revision kit

Basically get as much question practice in as possible and sit under exam conditions and attempt at least two past papers. I’m not aware that i need to go on to the ACCA practice platform as well. Perhaps i’ll take a look.

I think i really just needed to know whether the BPP revision kit for 2023/24 is worth purchasing . If there is only minor changes, then i may give it a miss and save myself the money.

Thanks

[Ellis-Sad]

Ok, thanks

[Ellis-Sad]

Oh, i see where you’re referring to. You’ve got the more ‘complete’ version from the lecture notes on page 19 which incidentally i have just come across.

Looking at it like this, i think i had misinterpreted it as ‘metres per hour’ and should have understood it at ‘hours per metre’

Is that correct?

Thanks!

[Ellis-Sad]

I still don’t completely follow. The only way i can see where i’ve gone wrong is where it says

Processing time per metre in hours:
Product A: 0.50 Product B: 0.50 Product C: 0.40

And i have assumed this to be 0.50 metres pressed (on e.g product A) per hour, and instead it means 0.5 (30 mins) for every metre pressed.

That’s the only way i can see where i’m going wrong.

I’m also not sure how you worked out the stats for Rolling & Stretching when the data isn’t available?

Thanks

[Ellis-Sad]

Hi John,

I’ve got it! I didn’t have the actual r^4 symbol on my calculator so watched a couple of Youtube videos to find out how i can make use of the calculator i have and found an answer.

I have watched your lecture videos, and the one on learning curves, thanks. They were helpful, but i’m quite rusty with all these calculations so it’s taking me a little longer!

Thanks again – answer attained!

Ellis

[Ellis-Sad]

Hi,
Is anybody there?
Where i’m stuck is how they arrive (as per the BPP revision kit) at the answer when using a calculator as below:
Cumulative average time per batch: 22,000 / 16 = 1,375
1,375 = 3500 r4
r = 0.79 or 79%

Could someone please help? There was another question or two similar to this and i’m just not sure how they arrive at such an answer using a calculator, It’s not that clear if you’re not too savvy with using calculators.

Many thanks.
Ellis

[Ellis-Sad]

Perfect and understood. Thanks John!

[Ellis-Sad]

Hi Jill,

No that does help. Thanks. If the lectures are being downsized, then this alone will free up time to practice the questions. Hopefully i can then do another syllabus alongside it in keeping in with attempting two exams per each window.

Thanks again.
Ellis

[Ellis-Sad]

Yes, of course i have watched the online lecture and read through the notes 🙂

That makes a lot of sense! Thanks

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