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Yes that is correct
JIT typically involves long-term contracts with suppliers with stabilised pricesA and C provide valuable insights and forecasts that support decision making processes.
C is right because analysing historical data and trends, it can help organisations predict future conditions that may affect costs,
B is incorrect as you cannot guarantee what will happen in the future, as it is based on probabilities and assumptions.
You must watch Johns video on mix and yield variances
Also read this.
https://www.accaglobal.com/uk/en/student/exam-support-resources/fundamentals-exams-study-resources/f5/technical-articles/mat-yield.htmlThe mix variance is adverse because a higher proportion of the more expensive materials was used compared to the standard.
Yield new machine means reduced waste during production, leading to a higher yield from the materials used. Even with the higher costs associated with the new supplier and the change in material mix, the overall efficiency in production has improved, resulting in less wastage.
Regarding the sales volume variance, it is favorable due to the positive customer feedback on the improved quality of the soap, which has led to increased orders. However, while a favorable yield variance often correlates with a favorable sales volume variance, it is not guaranteed in all cases.
Option D is true because if the actual sales volumes of all products are 10% above the budgeted sales volumes, it tells you that the proportion of units sold for each product remains unchanged.
Since there is no change in the sales mix which is the ratio of products sold, then there is no measurable sales mix variance.
So for example if the budgeted sales volumes for products A and B were 100 units each, but the actual sales volumes was 110 units for both products, the sales mix remains the same (50% for A & 50% for B).
It asks for a minimum cost….
What is fundamentally the lowest cost to transfer
200kg @ 6.10 = 1220The variable cost relates to making the product into SX not as S
300 kg of them are ready because 1800kg are made but only 1500kg they have demand for.
It states any unsold is scrapped
So it is 200kg @ 6.10 = 1220As we have said above, and my previous response.
This question asks:
What is the overhead to be charged against the project decision?So the overheads to be charged, thus not how much should be charged for labour as this is not included in the overhead calculation because it does not incur additional costs that need to be charged against the project.
The focus is on the costs that will be directly incurred due to the project.
Apologies for the delay
You can’t do it your way as the existing receivables are 24,000 (000) the new rec are 28,800 (000)You have to calculate the reduction in receivables
new avg receivable days : (0.75*30)+(0.25*51) = 35.25revised level is 35.25 /360 * 28,800(000) = 2820 (000)
current is 24,000(000) * 51/360 = 3400 (000)
reduction is 580 (000)therefore reduction in fin costs is 580 (000) * 0.04 = 23,200
When calculating controllable profits, it is essential to focus on what is under the control of the divisional manager. Controllable profit is what the manager can influence, which typically excludes costs determined by the head office.
So, if the question specifies the need for controllable profit, it should be calculated as Sales minus direct costs, which are controllable by the division. However, if the examiners have taken net profit, it may be because they are assessing the overall performance of the division rather than the specific performance of the manager.
Net profit includes all costs, including those controlled by the head office, which is why it may not align with the definition of controllable profit.
The examiners might have made this choice based on the context of the question or specific instructions provided, which may not have been clear in your interpretation.If the cs ratio for each product individually
X = ($11/$16)= 68.75%
Y = ($5/$20)=25%
Z = ($3/$10)= 30%And the sales revenues for the budgeted mix are:
X 50,000 x $16 = $800,000
Y 10,000 x $20 = $200,000
Z 100,000 x $10 = $1,000,000
Total: $2,000,000So therefore the weighted average is calculated as (800/2,000 x 68.75%) + (200/2,000 x 25%) + (1,000/2,000 x 30%) = 45%.
Do watch John’s free lectures on CVP analysis where he explain this.
Yes, lifecycle costing typically ignores opportunity costs when calculating the total lifecycle cost
This is due to lifecycle costing focusing on the costs directly associated with the new product being considered, estimating the long-term costs for the purpose of determining a selling price to ensure profitability.
Opportunity costs are relevant decision-making scenarios, such as when evaluating new contracts that may affect existing revenue.
I am currently away from my books and pc, so replying on an iPad
So I will answer when I am back home but do you understand the point that I was making
It’s a 6 mark question for all the steps of the question
So a fault is probably only 1-2 marks lostThe question you are referring to is part d which is worth only 6 marks
You are not asking me for the ultimate answer so this is a step along the way so OFR marks will apply.
Own figure rules will apply it will be marked based on your answer to reduction in receivables going forward.Market share is Actual to Revised because any difference is due to the share of the market achieved being different ie that you actually have sold larger or smaller (qty ) that is once you have revised/amended your belief of what you can achieve .
Market size is what you can achieve realistically, what you budgeted the size to be compared to what you have seen it grow or contract to. So you revise/ amend.
Actual
This gives share
Revised
This gives size
BudgetIf you would be kind enough tell me how you got 504 then I could tell you…
As you can see this isn’t a topic in the PM exam
It is just assumed knowledge from earlier studies, MAI only have the most recent BPP exam kit unfortunately
Sorry I can’t help you unless you can provide a question.Resource utilisation =. Average room occupancy rate
This metric reflects how effectively the hotel is using its available rooms, indicating the efficiency of resource utilisationBottleneck resource is typically identified as the resource that has the least capacity or the highest demand relative to its available capacity.
Therefore you need to analyse the production process to see which resource is it
But the information you have sent is not clear……
if machine time is the limiting factor, you would calculate the factory cost based on the machine hours available and the costs associated with that resource. So it’s done as…….
Throughput = SR-Mat………28000-15000=13000
Factory costs = 11550
TPAR = 15000/11550 = 1.30Can you be clearer in your question please
What is it you need help with
Is it a particular question in the BPP Kit? If so which question is it?
What exactly are you asking of us.I have attached the syllabus for your reference……
it is important to note that while these topics are included due to earlier assumed knowledge MA, calculations relating to them will not be asked in the PM exam. Instead, you are expected to understand the concepts.
If you want to know something different like this ..can you start a new question please.
Yes, a PM exam can include questions about idle time variance although it’s not a major focus area and the exam is more likely to test on calculating variances related to material usage, labour efficiency, and sales volume, rather than specific variances like idle time that assume perfect operating conditions with no allowance for idle time.
As for ABC variances, I don’t think it’s in the exam anymore.Preventative are implementing processes that minimise waste generation, investing in environmentally friendly technologies, or training employees on relevant practices.
So, essentially taking proactive measures to avoid potential environmental issues rather than just addressing them after they arise.
Certification wouldn’t be a measure that is obtained by the company to show it does this right!
