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Sir,
In the lecture on quantitative analysis for budgeting you mention that calculations relating to time series and regression analyses are not included in F5. But there’s a revision lecture related to time series analysis (the revision notes don’t include it). Is it part of the F5 paper?
Sir,
MCQ 13 of the June 2015 paper states that the quick ratio of a company is as follows:
In 2014: 1.4
In 2015: 1.3Inventory turnover period:
In 2014: 38 days
In 2015: 45 daysCurrent ratio:
In 2014: 1.3
In 2015: 1.1Is the following statement true?
Inventory levels have increased and this may have contributed to the decline in the company’s quick ratio.The answer provided says that it’s false.
Is it not true, sir? When inventory levels increase a larger proportion is removed to form the quick assets which would lead to a reduction in the quick ratio.
So isn’t the statement given true?Sir,
A question says:Budgeted sales for 2008 : 5000 units
Standard contribution: $9.60
A recession in 2008 meant that the market for the products declined by 5%.
Market share also fell by 3%.
Actual sales were 4500 units.Calculate planning and operational variances for sales volume.
The answer provided is as follows:
Planning Variance:
Budgeted Sales : 5000 units
Revised Budgeted Sales : 4750 units
Variance = 250 units @ $9.60 = $2400 (A)Operational Variance
Actual Sales : 4500 units
Revised Budget Sales : 4750 units
Variance = 250 units @ $9.60 = $2400 (A)I understand and agree with the answer. My question is, where is the market share decrease of 3% accounted?
Sir,
My previous doubt was cleared from the next calculation. Sorry for disturbing you and thanks for the previous reply. 🙂
Sir,
The answer to sales mix variance states that
actual total sales* actual selling price – actual total sales* standard profitBut the answer shows
actual total sales of actual mix at*standard profit – actual sales of standard mix at standard profitWhich is the right one?
Thank you, sir!! That was a very big doubt you cleared. Thank you so much for helping all of us and especially for free, in a world where almost nothing can be done without a price!!
THANK YOU SO MUCH!!!
Sir,
A Bpp question states the followingThe maximum capacity of a health centre is 50 clients per day for 350 days in the year.
Clients will be invoiced at a fee per day. The budgeted occupancy level will vary with the client fee level per day and is estimated at different percentages of maximum capacity as follows.Client fee per day Occupancy level Occupancy as a percentage of max. capacity
$180 High 90%
$200 Most likely 75%
$220 Low 60%Variable costs are estimated at one of the three levels per client day. The high, most likely and low levels per client are $95, $85 and $70 respectively.
The range of cost levels reflect only the possible effect of the purchase prices of goods and services.
Prepare a summary which shows the budgeted contribution earned by Stow Health Centre for the year ended for each nine possible outcomes.
The answer was given as follows:
Variable cost Client fee per day
per day $180 $220 $220
$
95 1338750 1378125 1312500
85 1496250 1509375 1417500
70 1732500 1706250 1575000No of client days:
Maximum capacity = 50*350 = 17500High occupancy level = 90% of 17500 = 15750
Most likely level = 75% of 17500 = 13125
Low level = 60% of 17500 = 10500Contribution = No of client days * Contribution per day (fee – variable cost)
Sir,
I get 03 values when I calculate myself (1338750, 1509375, 1575000)
But I don’t understand how the rest have been calculated. Can you please explain it to me. I’m not sure where I went wrong. This is my answer:Client fee High ($95) Most likely ($85) Low ($70)
$
180 1338750 1246875 1155000
200 1653750 1509375 1365000
220 1968750 1771875 1575000The figures within brackets are the variable costs.
Sir, please look into this problem and advise me!!Sir,
I’m sorry if this is a silly question. A bpp book states that we should use a ruler to draw the decision trees in the exam. Is it really necessary because obviously it’s time consuming. Would it matter if I drew the branches without using the ruler, yet neatly?
Thank you so much, sir!! I didn’t realize that the $45 per hour was actually an income that the employee was earning to the company. I’m sorry for misleading you initiallhy
Sir!!
This is an extract of the question:The job would require the following:
30 hours of work from one member of staff, who is paid on an hourly basis, at a rate of $20 per hour, but who would normally be employed on work for clients where the charge-out rate is $45 per hour. No other member of staff is able to do the member of staff in question’s work.I hope this doesn’t change your answer!!
Thank you, sir. I thought that it was about the elasticity assuming that the current price was the answer we got in example 2 which is 15 and therefore I thought that we had to calculate the PED if the price changes from 15 to 16.
This is also why I thought that part (b) was mistakenly given as 15 to be the current price. Thank you, sir 🙂
Thank you, sir!! Now I get it. I read it all over again and it makes sense. Thank you very much!!
Thank you, Sir!! I really thought that it was something too deep and too hard to understand.
1. IDENTIFY the system’s constraint(s).
2. Decide how to EXPLOIT the system’s constraint(s).
3. SUBORDINATE everything else to the above decision.
4. ELEVATE the system’s constraint(s).
5. If in the previous steps a constraint has been broken, go back to step 1, but do not allow INERTIA to cause a system’s constraint.Sir,
What does the fifth step mean? I don’t understand the term ‘inertia’. Can you please clarify it for me.Sir,
The part 2 of the throughput accounting article in the student accountant hub states that bottlenecks should first be exploited (step 2) and then elevated (step 4). I don’t understand the difference. Can you please explain it to me.
