[ketki15]

Also from September/December 2017 Sports Co
Could you explain the calculation of controllable profit as to why have we included depreciation and the head office cost?

[ketki15]

It’s from JUNE 2018, the Portable garage Co.
Could you explain the (b) part of the question?

[ketki15]

There are no dates mentioned in the question.
Is it possible that 480000 is a printing error? because as per the given information 470000 is correct right?

[ketki15]

The NCA had a carrying amount of 368400 and 485000 at the beginning and end of the year. Depre for the year is 48600. Assets originally costing 35000 with a carrying amount of 18100 were sold for 15000.
What is the addition to NCA for the year?

this is a question for the similar doubt
485000+48600+18100-368400
now why have they considered 18100 when the asset is sold for 15000? how do you know which amount is to be considered?

[ketki15]

Could you please give an example and elaborate on it? I’m finding myself very confused to distinguish.

[ketki15]

I’m still unclear. If it is a profit shouldn’t we add 9000+2000?

[ketki15]

but we have already included 230 as cash paid

[ketki15]

this is Kaplan exam kit sep2019- aug 2020 qst 159

[ketki15]

yes this is an exam kit qstion for kaplan
pg2 Q3

[ketki15]

Which of the following statements about balanced scorecard approach to performance
measurement is TRUE?
It is part of the benchmarking process
It ignores cause and effect relationships between performance measures
It includes financial and non-financial indicators
It must have an equal number of performance measures in each perspective

The answer given is A and C but shouldn’t it be B and C?

[ketki15]

I also have a question related to standard costing.
we’ve been given budgeted contribution 20000, act cotbn 15000, sales vol contrb 5000A, sales pr variance 9000F, fix overhead exp v 3000F and we are asked total variable cost variance.

they have solved it as 2000+9000-5000=24000-15000=90000A
what is the logic behind this solution? how do we decide which costs are to be considered?

[ketki15]

is IRR and cost of capital the same?

[ketki15]

cost of capital given is 10% and life of 4 years

[ketki15]

Also, if a company operates with marginal costing and plans to change to absorbtion costing will the sales volume increase or decrease?

[ketki15]

also can all costs be controlled in the long term?

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