[nyozi]

@shehzadhussain said:
Mcq question 2 about lifecycle cost was the ans 75 I mean the option D ???

i got $56 …..think that was C

lifecycle costing is different from relevant costing principle so i included all the cost …………i made this mistake March

[nyozi]

ROI MCQ ………..i cant remember the exact % however i calculated like this:

Net Profit/ (Cost – Acc Dep) = NBV + Inventory (since its part of working capital)

[nyozi]

Rolling Budget (D) $2,181,000 …………Remember a rolling budget is always for 12 mths (4 Quarters)…….Therefore quarter 1 had to be omitted since it the time has already passed and a new quarter had to be calculated ………..i saw a similar question somewhere last week

Target cost ….. Cost had to decrease by 30 % inorder to maintain the gross profit margin of 30%. consider this:

current S.P =150 ….Cost = 120 (25% mark up) = profit 30 ………
revised S.P = 120…..Cost = 84 ……..= profit 36

Hence to maintain Margin of 30% = P/S.P =36/120 = 30
% decrease = 36/120 *100 = 30%

I basically played around with figures in the exam

Learning rate ……..120/150 = 80% ……i’m not confident with this

BEP = I guessed A = 24,000

[nyozi]

It was a surprisingly simple exam. I tried my best but I’m not sure if my effort was enough to score atleast 50 marks. I deeply regret not working enough past papers…… If I had, this would’ve been an easy walk over.

[Author]

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