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In our opinion they are. (You may also want a textbook to use for background reading).
What we do well is we explain the theory behind and use of various equations, theories etc.
Hopefully you will find us enthusiastic about the subject.There is the facility to ask the tutor questions and AI function to use when you need it.
What question are you asking about?
Questions are modified by writers all of the time?This question could be an objective test question or it could be find the value of ….. or a a fill in the blank or number entry question so that would say to provide answer for the nearest$?
Planning variances are considered outside a manager’s control because they typically arise from external factors or decisions made prior to the operational phase.
Resulting from changes in market conditions, such as increases in material costs or labour rates, which the manager cannot influence.Also, if the original budget was unrealistic or based on incorrect assumptions, the resulting variances are not a reflection of the manager’s performance in their operational role.
Therefore, while managers may be involved in the budgeting process, they should not be held accountable for variances that stem from factors beyond their control.Have you sat the exam recently?
If so, how do you know how well you have done?Or when do you intend to sit it again?
Anyway I will try to help
Cost-plus pricing or (mark-up pricing)
You calculate the average cost of production and then add a predetermined (agreed) percentage mark-up or profit margin. Which is:
Markup – involves adding a percentage to the cost to determine the selling price.
Margin -The total cost of production and then add a desired profit margin to determine the selling price.Mark up 20% on 100 cost = 100 * 1.2 = 120 selling price
Mark up 15% on cost is x * 1.15 so if it’s 100 cost it is 115Margin of 20%
So convert 20% to a decimal 0.2
Subtract from 1
So it becomes 0.80100 / 0.8 = 125
For profit base you need to
If you want a profit of 20 based on a 20% profit margin, the selling price would be 100.20/0.2 = 100
.The cum-rights price is the market price of the shares before the rights issue, while the ex-rights price is the market price after the rights issue has been accounted for.
The TERP helps to determine the new market value of the shares after the rights issue, similar to how the ex-dividend price is calculated by deducting the dividend from the cum-dividend price.
The return on equity (ROE) is not treated as the cost of equity directly; rather, it is used to estimate the growth rate of dividends when calculating Ke.
The growth rate is essential for applying the DVM, even if it is not explicitly mentioned in the problem.
When Beaver Co redeems the bank loan using the proceeds from the new equity issue, it effectively eliminates the interest expense associated with that loan.
The interest cost is treated as a saving because, after redeeming the loan, the company will no longer incur that interest expense, which would have otherwise reduced the profit after tax.
So you add the after-tax savings from the interest expense back to the profit before tax to arrive at the new earnings figure (a higher earnings per share figure).Yet you were applying the No Tax theory instead of the theory with tax. The key point is recognising that the presence of tax allows for the benefits of debt financing to enhance the firm’s value.
So in a perfect capital market with tax, the introduction of debt financing leads to a lower weighted average cost of capital (WACC) due to the tax shield on interest payments.
While the cost of equity increases because of the higher financial risk associated with increased debt, the overall WACC decreases.
This reduction in WACC results in an increase in the total market value of the company.
We did put a message on that support was unavailable until after 3rd December
In transfer pricing, the approach to calculating the transfer price can vary based on the company’s policy. If the question does not specify that you should calculate the minimum transfer price, it may be acceptable to use the current transfer price, which could include fixed costs if the company follows a full-cost approach.
However, in many cases, especially when aiming for sensible transfer pricing, fixed costs are typically ignored unless explicitly stated otherwise. This is because including fixed costs can lead to higher transfer prices, which may not align with the goal of ensuring goal congruence between divisions.
We have put a message on stating
That there is no-online-ask-the-tutor-for-PM
From the 26-11-24 until-the-3-12-24I put a message on the forum
There is no on line support until after the 3rd of December unfortunately
I put a message on the PM forum
There is no on line support until after the 3rd of December unfortunately
A full debrief is available on the ACCA website
In the real exam, when answering a matching question, it is crucial to read the instructions carefully. If the question requires you to select multiple correct statements, ensure that you select the exact number specified, as there is no partial marking.
So if it asks for two correct statements, you must select two; selecting only one or more than two will result in no marks awarded.Multiple response matching is one of the four main question types, the other three types are multiple choice, multiple response, and number entry. All questions are worth two marks, and some questions include background information to help with answering.
18 hrs* 5 days * 50 weeks * 50 lines = 225.000 hours in total
225,000 / 0.5 hrs pu = 450,000Where is the 300,000 from?
Metre of material?My advice move on from this question
I hope you don’t mind me saying it is a very old question which you have said has been amended
By who? BPP?
Is it actually exam standard?
You should be looking at newer questions……If this question has been modified, it is years old anyway……
Here’s the video that John did on the original question.
https://www.youtube.com/watch?v=8Y3aIvgXSHUTo identify the new bottleneck resource after increasing the available hours for the pressing process to 450,000 hours, you need to analyze the processing times for each product across all processes (pressing, stretching, and rolling).
With the increased capacity in pressing, you would calculate the production capacity for stretching and rolling to determine which process now has the lowest capacity.Regarding the concern about the lack of clarity in the amount of sheet metal utilised by each product, it is essential to understand that the bottleneck is determined by the process that limits overall production capacity.
Even without specific quantities of sheet metal, the processing times provide sufficient information to identify the bottleneck by comparing the time taken for each process across all products.
When assessing the performance of a divisional manager, ROI is typically calculated using controllable profit, which excludes costs that the manager cannot control, such as head office costs. This allows for a fair evaluation of the manager’s effectiveness in managing the division’s resources.
Conversely, when evaluating the overall performance of a division, net profit may be used, which includes all costs, both controllable and non-controllable. This method provides a comprehensive view of the division’s profitability, reflecting the total impact of all expenses.
In summary, the choice between controllable profit and net profit for ROI calculation hinges on whether the focus is on individual managerial performance or the overall divisional performance.
Thec2nd question
Statement 2 is indeed true as it highlights the concept of asset and liability management in hedging interest rate risk by matching the maturity of assets and liabilities. However, your observation about the statement being incomplete is valid.
While matching the maturity is a crucial aspect, it effectively considers the interest rates of the assets and liabilities. Ideally, the interest rates should be aligned to minimise the risk of interest rate fluctuations affecting cash flows. Therefore in essence the statement does not encompass the full scope of interest rate matching, which includes both maturity and interest rate alignment.
