[mike0943]

ok you are right……sorry for that…there was a certain lecture i got confused with…i think it was published in the past and had an error. The one in your website right now is the correct one and matches to the answer.

[mike0943]

i see…its more of a calculation based assumption.

[mike0943]

i went through eg 3, but i still failed to understand that concept of growth and recession.

[mike0943]

Thank you sir. 🙂

[mike0943]

Thank you sir. I am sorry if i sounded impolite by including the word “urgent”.

I had seen the change in the format of the exam (with more MCQS), that is why i was asking if i could use the opentuition f9 online MCQ test as an additional practise resource since i dont have the latest kit.

I hope that would suffice.

[mike0943]

I will do that….though m quite confident with most of the chapters read in the ot notes

[mike0943]

Thank you sir. Yes, the answers provided by the examiner and in the kit are far too many & detailed and complex

I hope it’s fine if I gave brief points like 5 or 6 if it’s a 5 mark qn .

It’s quite difficult to comprehend and understand the answers in the kit/examiner

[mike0943]

Q1c – December 2013

Darn Co has undertaken market research at a cost of $200,000 in order to forecast the future cash flows of an investment project with an expected life of four years, as follows:
Year 1 2 3 4
Sales Revenue ($000) 1250 2570 6890 4530
Costs ($000) 500 1000 2500 1750

These forecast cash flows are before taking account of general inflation of 4•7% per year. The capital cost of the investment project, payable at the start of the first year, will be $2,000,000. The investment project will have zero scrap value at the end of the fourth year. The level of working capital investment at the start of each year is expected to be 10% of the sales revenue in that year.

Capital allowances would be available on the capital cost of the investment project on a 25% reducing balance basis. Darn Co pays tax on profits at an annual rate of 30% per year, with tax being paid one year in arrears. Darn Co has a nominal (money terms) after-tax cost of capital of 12% per year.

Required:

Explain ways in which the directors of Darn Co can be encouraged to achieve the objective of maximisation of shareholder wealth. (6 marks)

Same goes with this qn…….how do I approach this qn…

[mike0943]

@mike0943 said:
I was going through your practice qn 1 on page 213 regarding tax avoidance and evasion, you mentioned in the answer to it that the tax payer can amend the tax return within 12 months if there is a Mistake in stating the income to be taxed, is this missing in the notes to chapter 1?

Have you missed out some syllabus parts in the OT course notes for other topics aswell?

If so do I have to refer to the study text for that?

Please correct me if I am wrong, as I do not want boil over the study text 🙁

Please reply sir

[mike0943]

thank you sir. since i dont have time i will rely on OT notes & lectures n revision kit, hope that earns me some 70-80s

[mike0943]

thank you sir. i have seen that you have mentioned at the end of each chapter the practise question to attempt and the technical article where relevant. i hope this is sufficient together with the updated revision kit.

is it safe to neglect the study text and rely on opentuition lectures + notes and revision kit only?

[mike0943]

Thank you sir. i find the study text quite complicated, so i have decided to rely on your notes and lectures instead, i hope it covers the whole syllabus just like the study text

[mike0943]

hello john, is it okay if i use your F9 sept/dec exam notes for march sitting? i have decided not to use the studytext, only opentuition lectures, notes and bpp revision kit

[mike0943]

i am interested aswell…guys lets team up

[mike0943]

Thank you john…that’s a good thing to hear 🙂
I just hope I pass well in the 70s

[mike0943]

Yes I will definitely practice the MCQs….but looking at the section B qns in the revision kit ….I don’t have sufficient time to go through them all today as the exam is tomorrow. That is why I asked if it was okay if I went through those qns in the study programme only.

[mike0943]

Thank you gromit for your comment. I am glad I did well,from your viewpoint. According to me I think it would deserve 10-12 marks since it is concise and to the point of qn requirements and addressing the scenario. 🙂

Just to know where you/are currently teaching in bpp or kaplan ? Or other tuition provider? It would extremely help us as students if you can review our answers to judge the marks that can be given from the markers viewpoint. There by we can know if what we are writing is okay or needs improvement accordingly 🙂

[mike0943]

thank you john

[mike0943]

thanks alot john. i really appreciate your support. i have understood your explanation. its actually common sense which didn’t click on me earlier but now it’s clear 🙂

i wonder why bpp makes mistakes. they will simply confuse students.

just to ask if you know, does the f5 bpp kit have many mistakes in their solutions or just few of them?

you had mentioned something about the “errata sheet” earlier somewhere in the forums, saying that is the place where you can check where they have mentioned about their errors. where can i find that place?

[mike0943]

thanks for your reply. i have gone through the lecture but this qn looks quite complicated. i have understood material W as it will only be on replacement cost. but i dint get how u got 9$ as cost of lost scrap for material X . And also i did not understand for material Z and y how bpp arrived to that?

please explain john

[mike0943]

i really do prefer your notes and lectures only. but if i only use your notes and lectures and pastpapers from 2010- 2015 is it enough to score around the 80’s?

frankely speaking i would gladely be happy with just a pass. but inorder to get a first class in the OBU degree i really have to do very well in these papers, some of my papers i have not done so well so i have to compensate by doing well in the remaining ones

i know practising pastpapers is important but then will i be able to get in that range of marks or atleast in the lower 80’s?

[mike0943]

i see. but is it important to refer to the study text or your notes and lectures are all that is needed to cover the syllabus?

if so, will i then be able to solve any type of questions in kit or from past papers comfortably?

[mike0943]

What i mean is are there certain topics which we have to refer to the study text for more details/depth not in the OT notes and lectures?

[mike0943]

Thank you john. i just checked the syllabus and yes you are right indeed, the topic is appearing in the syllabus. It looks like Acca overlooked this comment in the article

but in this part of sales mix variance, i don’t get the logic behind the formula used for calculating the “sales mix variance” as illustrated in the example in OT course notes.

[mike0943]

but the technical article in acca for material mix and yield variances said “While the calculation of a mix variance can also be done for sales, this is not covered by the Paper F5 syllabus at present.Therefore, I shall concentrate purely on the materials variance here.” and it was last updated on 25th feb 2015 ie. not too long ago.

so have they made some sort of mistake here in updating the article?

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