[myacca1990]

Passed with 59 marks in third attempt. Finally.
Happy right now.
I want others to learn from my mistakes I learnt the hard way .My piece of advice for you.
Do not take more than one exam per session in second module and onwards.And do not revise again by reading from the text book instead use opentution notes.
Opentution definitely have a big role in this success. Thanks to the teachers and admin of this wonderful free study website.

[myacca1990]

Well this time atleast I attempted the full exam. Let’s see how it pans out on 16 Jan 2023.

[myacca1990]

1)Individual yes if the leased asset is used for trading purposes.
2)Company yes.

[myacca1990]

It worked like a charm ?
Thanks @poojakumar

[myacca1990]

@JillyB if we assume it as a cash basis because the question didn’t mention it otherwise then it should be 11 rather than 10 months right?
As @sidhumoosewala295 said above.

[myacca1990]

I got this question from the kaplan study text for 20/21 year.
Yes I am appearing for December 2022 session I.e 21/22 tax year. The principles are the same for both tax years as regards to this question right?
So please tell me am I correct is there a error?

[myacca1990]

You won’t be penalized for incorrect English grammar.

[myacca1990]

Thanks a lot.
Well as said by a professional tutor in that thread “there are fewer students taking it as a optional exam”. Any specific reason behind that? Or is it the most toughest exam in acca?

[myacca1990]

All clear.
Thanks a lot Sir!

[myacca1990]

After reading all such frustrating comments thanks God I didn’t enter for the remotely invigilated exams for December 2020. It would have been a waste of time and money.
I think it’s quite irresponsible by ACCA for not having any regard for the hardwork and money invested by the students.
Well what we can say covid-19 has impacted all of us directly or indirectly and ACCA is not immune.

[myacca1990]

@Taxtutor said:
I assume that the answer gave you the calculations behind the 3,400?

Currently the gains on Minor plc are being taxed at 20% – therefore 44,100 at 20% =8,820
If the disposal is delayed until the next tax year the gains are reduced by the available AEA of 11,700 to give taxable gains of 32,400
These gains are then taxed as:
10,600 at 10% = 1,060
21,800 at 20% = 4,360
Total = 5,420

Saving = 8,820 – 5,420 = 3,400

I assume the answer showed the savings as being:

11,700 (AEA) at 20% (gains not now taxed) = 2,340
10,600 x (20% – 10%) (gains taxed at 10% instead of 20%)= 1,060
Saving = 3,400

I am also having a confusion here.
How that 10600 figure came when we calculated 10600 at 10% from 32400 after AEA figure?

[myacca1990]

Thanks Sir! All clear

[myacca1990]

@mulan said:
Hi everyone. In section C I got Incremental vs. Zero based budgeting for Amgold Co and financial and non-financial performance of Binty Co

I got the same questions.

[myacca1990]

@maria16 said:
is this your second attempt? mine was the first and I was well prepared but now I’m disappointed it was harder than I expected. not the content but managing the time .

Actually a fourth attempt .Quite a normal thing with this PM exam.
Well it,s happens with most students you are not alone here.The students who recently the part one(FA,MA,AB) thinks that they will make it easily but what they do not realize is that the difficulty level steps up and scoring 70% and above marks in these exams is a not that much common.With lot of effort you will just pass with 50 and 60%(mostly 50%) and time management will be a big issue here.

[myacca1990]

@nimmonen said:
It shouldn’t have been too bad. Always a few tricky questions, but if you read the examiners article, one of my questions came from it, exactly (hint! Always read the examiners articles)
Sec B scenario based question for concert tickets on CVP analysis threw me off and got so mixed up
Section C was writing only, minimal calculations, on incremental budgeting vs ZBB and balance scorecard. 15 mins to go and I realised I needed to explain why I chose the specific performance measures.
All in all, not as disastrous as expected, but will see what the results come back with.

I too had that CVP concert ticket question and that was hell lot difficult.There was just too much detail in one question.I was happy that throughput accounting question did not come in section B which is my weak point but that CVP analysis question surpassed TA difficulty.

[myacca1990]

@maria16 said:
It was ok but I had time management problem. I don’t want to have assumptions about the results but I will wait the results 🙂

Time management was indeed a problem. But i guess its a normal thing in most ACCA exams.

[myacca1990]

Well it was ok and balanced paper this time. Not like the hard one last time.
I performed better this time and hopefully i will make it this time.
But as usual time management was a issue.

[myacca1990]

@johnmoffat said:
From the standard cost card, 19 litres should be produced for every 20 litres input.

They actually input 2,000 litres, and so the expected yield is 19/20 x 2,000 = 1,900 litres
They actually produced less than 1,900 so the yield variance is adverse.

For every 20 litres input, the mix should be 8 litres of A and 12 litres of B.
The actual total input was 2,000 litres and so the standard mix would be 800 of A and 1,200 of B. They actually input more of A and less of B. Since A costs less per litre that B, this would save money and so the mix variance is favourable.

Have you not watched the free lectures on mix and yield variances?

Thanks Sir! All clear.
No actually that 19/20 ratio confused me ,concept wise i am ok with variances.

[myacca1990]

Thanks Sir!
All clear.

[myacca1990]

@johnmoffat said:
The variance is favourable.

The reason is that they managed to get more hours of labour than they were expecting to get, which means that the absorption rate (fixed overheads per hour) would be lower, which on its own would result in more profit.

Fixed overheads variances are unlikely in Paper PM (because they were examined in Paper MA (was F2)) but if you are still unsure then do watch my free Paper MA lectures on fixed overhead variances.

Got it 🙂 Thanks.I passed F2 a while ago so i forgot some basics.
Actually this question was part of a learning curve question and how the learning curve is affecting the variances .I think alone definitely this shall not be asked in PM but it can be asked along with learning curve question.

[myacca1990]

@johnmoffat said:
I obviously cannot be certain that they have made a mistake here, although it sounds as though they have done. Have you looked on their website to see if there is an errata sheet?

A errata sheet for BPP does exist but a quick google search gave me nothing on kaplan errata sheet for ACCA study materials.Ok i am typing the whole question here,so there should be no uncertainty.
(a) Flopro plc makes and sells two products A and B, each of which passes through the same automated production operations. The following estimated information is available for period 1: (i) Product unit data: A B Direct material cost ($) 2 40 Variable production overhead cost ($) 28, 4 Overall hours per product unit (hours) 0.25 ,0.15 (ii) Production/sales of products A and B are 120,000 units and 45,000 units with selling prices per unit $60 and $70 respectively. (iii) Maximum demand for each product is 20% above the estimated sales levels. (iv) Total fixed production overhead cost is $1,470,000. This is absorbed at an average rate per hour based on the estimated production levels.
(b) One of the production operations has a maximum capacity of 3,075 hours which has been identified as a bottleneck which limits the overall production/sales of products A and B. The bottleneck hours required per product unit for products A and B are 0.02 and 0.015 respectively. Flopro plc has decided to determine the profit maximising mix of products A and B based on the Throughput Accounting principle of maximising the throughput return per production hour of the bottleneck resources. This may be measured as throughput return per production hour = (selling price – material cost)/bottleneck hours per unit.
QUESTION:Calculate the mix (units) of products A and B which will maximise net profit and the value of that net profit.

[myacca1990]

@johnmoffat said:
I know I am right because I have the original exam question in front of me 🙂

I cannot give you a proper answer without seeing how Kaplan have amended the question (and I do not have Kaplan books – only the BPP Revision Kit).

With throughput accounting, labour costs should be subtracted (as a fixed cost based on the budgeted figures) from the throughput contribution, as I explain in my lectures.

So that means the kaplan solution definitely made another mistake just like the one in question i posted here few days ago.Mistakes do happen in both BPP and Kaplan books and if we follow the conceptual approach of TA labour costs must be deducted.
Anyways thanks for the help.

[myacca1990]

@johnmoffat said:
The question specifically says that they have to make 20 muffins (the minimum demand) and therefore they have to be made regardless of the ranking.

Got it 🙂 Thanks
Means we cannot make 120 brownies in the remaining 60 minutes because the muffins had to made to meet the minimum daily demand.
Nevertheless the question was challenging.Too much detail embedded in one question.

[myacca1990]

@johnmoffat said:
I assume that you are referring to part (b) of the actual exam question, in which case this part is not asking you to use throughput accounting. It is normal key factor analysis.

It is only in part (c) that you are asked to use the throughput accounting approach (and in part (c) you are not asked to calculate the profit).

(This is a very old question that was originally asked in what is now Paper APM. It would not be asked in this way these days.)

May be you are right and it looks like the question in the kaplan kit has been amended.
Actually there is no part C in the question in kaplan kit.
There is a part B which is further divided into three parts and all those three parts are about throughput accounting.The part B takes data from part A for the calculations required for the throughput accounting.In part b(1) we are asked calculating calculate the optimal producting mix according to the throughput accounting and arrive at the net profit.
So after calculating the throughput we have to take other fixed costs from the part A to arrive at the net profit.We have fixed production over head costs,variable over heads costs per unit and overall hrs per product unit for products A and B.My question is we deduced fixed production overheads,variable production overheads but why we did not treated the labour costs of products as a fixed cost to arrive at a net profit?

[myacca1990]

@johnmoffat said:
To be honest, it is slightly arguable with regard to the $20,000 salary cost. The examiner has included it because it was a cost of the particular product. It was only however 1/2 mark out of the total of 10 marks.

So finally it should be accepted that the sunk costs should be included in the life cycle costing of a product because we are trying to calculate all sorts of cost incurred from cradle to grave.

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