[premsaikatta]

Thanks for the beautiful explanation John. Will surely consider this and plan accordingly.

[premsaikatta]

Thanks John. You are just gold to the ACCA community. Will surely practice the way you told.

With regard to AFM I got exemption in FM due to my CA here in India. So do u suggest writing both AFM and PM or only PM?

[premsaikatta]

Thanks John. This is my second attempt I scored 42 in my first. Do I need to watch lectures again or do I need to read the lecture notes and practice more and more questions now? Your suggestions are valuable

Second query is I am planning to write PM and AFM this june 2021. Is it possible to write both subjects in 2 months preparation? I will have 8hrs time daily on average to prepare

[premsaikatta]

Thank you so so much sir

[premsaikatta]

Yes sir you are right even though scenario consists of 3 products ,in this specific question they told that out of three products one product has been shut down and since there is two limiting factors and 2products linear prgramming can be used Right sir..?

[premsaikatta]

Yes sir got it thank you

[premsaikatta]

So unless question specifies use throghput accounting for any limiting factor problem we always use key factor analysis and rank based on contribution per labour hour

[premsaikatta]

Yes sir that means since 20hours of unskilled labours are idle i.e. we are paying even though they are not working is irrelevant , but we since require 56 hrs of labour for the work anyways we pay for balance 36hrs at overtime to complete the concerned work Am i right sir.?

[premsaikatta]

And in the above question even though we require 56 hours of unskilled labour for the concerned work we pay for 36hours only i.e total time less idle time so that means 20hours is inclusive of 56hours and the relevant cost is the amount for which they worked and paid Am i right sir.?

[premsaikatta]

I too felt the same thing about the wordings but thanks fro clarifying ,by the way the wordings are from kaplan revision kit

[premsaikatta]

thank you sir you clarifies doubts so effectively

[premsaikatta]

Sir but in one of the answer in kaplan revision kit it is stated less idle time in the non bottleneck process will not improve throughput accounting ratio..?

[premsaikatta]

okay okay now i got it sir I am vexed up from morning thank youu is the small word. So finally Since the qn specifies it can be stained and we know it has to stained we included 4.5*10 for old teak and new teak Am i right sir..?

[premsaikatta]

The answer for that part is the unskilled workers are guaranteed work for $420/$12=35hrs.
They are currently working $372/12=31hrs There are 5 workers therefore 20hrs of week will have no cost,Leaving balance 36hrs(56-20) to be paid for a time and half

My doubt is how those 20hrs will have no cost.I did not understood that point.

[premsaikatta]

Yes sir kaplan it is.The qn is which of the following only but to my query I asked why it is .Thank you

[premsaikatta]

Hi sir

I did not understood the point you explanied.In the question it is stated clearly that the new teak can be stained with no preparation so that means we need to colour only the existing teak since purchasing of new 5m teak is inclusive of desired lighter colour.? so it is 4.5*5 (for old teak)Am i wrong sir.?

[premsaikatta]

okay thank you sir

[premsaikatta]

Thank you sir,Grateful

[premsaikatta]

yes i did watch thank you sir.

[premsaikatta]

Thank you so much for the clarity sir

[premsaikatta]

Yeah sure sir from next time…

Coming back to your answer it means redundancy payments are some type of salary or wages and if we buy, it indicates supervisor is no longer needed and therefore no redundancy payments to the supervisor.So it is the indirect cost of buy option and hence requires consideration because such costs would have been incurred if we had made that product. Am i right sir..?

[premsaikatta]

okay thank you sir.

Another query from the revison kit.
1-How redundancy payments to the supervisor of the product in question is a consideration in a make or buy decision?

[premsaikatta]

So that means since a tax calculator predicts tax payables for different scenarios ,it means it is giving the indirect decisons so that is why tax calculator is a expert system .Is it right sir..?

Thanks in advance sir

[premsaikatta]

Thank you sir now I got clarity..

[premsaikatta]

Sir an ATM is also programmed with all relevant rules to disburse cash or deposit cash na..?so why isnt ATM machine is a expert system..??

And why material would not normally be used to describe a relevant cost for a decision..?

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