Forum Replies Created
- Posts
Hi Kmgrunsell, Im pretty sure we were not required to use to fisher formula as we had to discount the flows using nominal/actual rate, since the cash flow were all inflating at different rates. Also regarding capital rationing, I believe we had to talk about different types of capital rationing i.e Divisible , non-divisible projects
I have understood the timing after solving a couple of questions that all flows occur at T0 but we include them in T1 because we want to discount the flows at COC to get the present value. I was originally confused and thought that the flows took place throughout the year, as it happens in real life but according to the exams we are to assume they all occur at the end of each year for discounting purposes hence we are given yearly discount rates in the exam. So do we ever deal with flows arising throughout the year in ACCA? or are we just tasked with understanding the concept?
The paper was not hard but we had a lot of obscure topics being tested, my set had sec c questions on salmon co flexed budget and KPIs for a courier company for the flexed budget, I calculated the budgeted costs p.u and flexed the budget to the actual production level also had to do high low analysis to find the manufacturing overhead, It took me few mins to realise we had to flex the budget as I was surprised as this was a question from f2 . Sec A and B were pretty straight forward except for 1 question which was lifecycle cost per unit per year, the calculations seemed very lengthy so left it, so I was only able to write 1 or 2 lines for the justifications in KPIs but im pretty sure I had allocated the existing and additional KPIs perfectly, does anybody have any idea how would they grade it?