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Sorry, I forgot to add in the Machine 2 details given in the question!
Machine 2 will initially cost $540,000, have a life of three years, scrap value of $120,000
and annual running costs of $47,000.Oh my! It sound so simply and easy! But sometimes the exam pressure is too much that we tend to overlook such details!
Well, I knew that 3 months interest needed to be expense but that second part was really tricky!
Chris, thanks a lot for your guidance!
Have a good day 🙂Mention not 🙂
Wow that’s really great to know that you have being to UAE. I hope it would had been a great experience for you! 🙂Thank you very much for your clear and easy to understand explanation!
You are doing a great job Chris!
Thanks a lot for your clear explanation!
And will surely keep this thing in my mind for future queries 🙂Have a good day ahead! 🙂
I mean to say that in the leases notes (Example 2) you have shown it:
Brought forward – Cash = Outstanding amt. + Interest
Where the 887 amount you got it from 17730
But in the practice question Chapter 12 (Question no 4 answer) you have shown it:
Brought forward + Interest – Cash
Meaning you have taken the interest amount from the brought forward figure.
Hope I’m clear now.
Well, I would say that the exam was hard with some really trick questions But starting with Section A, it was a bit easy compared to what I usually read from previous exam discussions. But there was this one particular question “It says: The annual sales were 960000 and the current ratio is 3.2:1 and the sales are made in cash and the average cash balance is 40000 and the inventory turnover is 90 days. So what is the quick ratio assuming 360 days?” I was completely lost in this part, so I randomly choose the answer. Then there was a question regarding price elasticity and a question regarding ABC where we had to calculate the packaging and dispatching cost per unit for a product.
As for section B: I got CVP (very weird type of question), Pricing (where you have to use the formula), Variances (Which really straight forward for me) and ABC Costing (A bit hard question) where they had given the cost pool and cost drivers and said that 10% of total batch cost, 20% Maintenance cost and 30% of general overheads are environmental cost in a note below. I really din’t know whether to include these or not in the calculation of the budgeted overhead cost per unit. And also there was question relating to environmental related and driven costs, which I found so similar to one of the questions in the past exam paperLastly for Section c, I got a ROI/RI question and a flexed budget one which was really out of blue but still managed to complete it somehow.
In ROI/RI question the thinking part inclusion of assets and depreciation controlled by the head offices
I didn’t get a single question relating to learning curves, non financial performance, transfer pricing and Relevant costing
And in the answer’s explanation, it says “the fixed cost to
variable cost will be in the ratio of 1:3.”
How to derive a ratio in this situation?Hellp Trephena,
I have to inquire about the BSc program. As I have not yet opted for this degree, so do I need to make the payment promptly once I opt for it or after passing the fundamental papers F7, F8 and F9?
Hope to hear from you soon!It sounded so simple and easy! Thank you very much Sir for being so precise and clear:)
Have a good day ahead:)Hello,
You can get answers for all your doubts in this link: https://opentuition.com/acca/f3/acca-f3-revision/ as the Sir has explained everything nicely in the videos!
