[nzrn89]

Thank you so much for the explanation
But however I am a bit confused, because i thought if we negotiate a cheaper rent wouldn’t the total fixed overheads for the rent reduce? Thus leading to lower cost per unit for the fixed overheads?

[nzrn89]

Brilliant! Thank you so so much.
I truly appreciate your help.

The same concept applies when calculating the capital employed for ROCE?

[nzrn89]

Thank you so much for your response:)

Makes sense now.

But i am still a bit confused, may I ask if its for the initial investment at the beginning which is the reason we did not deduct the depreciation for the capital employed. Then why then for the operating profits we still deduct one year depreciation to get to pre-tax profit?

And if the question did not mention “the initial investment” would we have deducted the depreciation from the capital employed?
Thank you so much

[nzrn89]

Thank you for clarifying that Sir.
Brilliant! 🙂

[nzrn89]

Thank you so much sir! Brilliant!!

Yes i copied the question correctly. Unfortunately the suggested solution and my understanding was wrong at the beginning.

But now I have fully understood

Thanks so much! 🙂

[nzrn89]

Thank you so much! You are awesome!

[nzrn89]

Thank you so much sir, this was the answer from ACCA’S FMA Examiner report December 2011 in the ACCA website. In BPP along with the ACCA website all have written this answer so I am confused why all use $1.8m as part of the new quick ratio. Is it because of any financial accounting terms I am not aware of?

[nzrn89]

Hi, when do we know we should apply standard gross up rate? Because some questions just use the normal standard rate.

Thank you

[nzrn89]

Thank you so much John! Truly appreciate your help 🙂

[nzrn89]

Thank you John

[nzrn89]

Hi John,

I have a question its q142 in the bpp revision kit.

The question is:
The following statements have been made about learning curves.
(1) learning curves are easier to apply in companies with high labour turnover than those with lower rate of staff turnover
(2) learning rates are not affected by time gaps between the production of additional units of a product.
Which of the following statements are true?

A. 1 only
B. 2 only
C. Neither 1 nor 2
D. Both 1 and 2

Answer from BPP – D
But i do not understand the logic behinf the answer. Can you help me? Thank you

[nzrn89]

Thank you so much for your answer. Truly appreciate it! 🙂 I have a better understanding now.

[nzrn89]

Thank you so much! Highly appreciate the feedback 🙂

[nzrn89]

Should I still buy the new book?

[nzrn89]

Can i use the bpp study text up to june 2015 book for the june 2016 exam?

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