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It was horrible. I thought of that too but I decided on this approach because I reread the question a few times and it seemed like the school had decided on the design change and the material and the production manager did a good job of securing the material without any adverse variance but the favourable variance can’t be attributed to him either cause it was a planning variance based on the school’s choice of material…at least that’s what I wrote
I had seen a similar question before in one of the practices I had done and the answer scheme needed both the operational and planning variances to be calculated and under discussion to evaluate production manager’s performance, it was important to point out that the planning variances existed because the standard cost card was not updated and as such the production manager should not be held responsible for the adverse planning variances
thatgirl,
I actually thought I was quite well prepared for f7 and was fearing f5 more, but I feel like that paper took me by surprise and I was more positive about f5. Won’t know for sure till I get the results though. Hope we all pass
Khaikasu71,
Yeah, I do self study as well with notes on here and my kaplan books and exam kits. I was pretty comfortable with the material and the past year papers as well as the questions I attempted on exam kit but these exams took me by surprise. I feel like a lot of things not previously questioned (and some not even mentioned in the books – like the operational gearing and input output analysis questions in f5) had come out and the wording of the mcq was quite tricky.
This is my first ACCA exam after the first 4 CBE’S (f1, f2, f3, f4)…took two papers this session f5 and f7. Hopefully I can pass both but learned my lesson, might just stick to one exam per session next time
thatgirl,
yeah that might be right, I’m not sure. Cause the way I did it was to identify the breakeven point on the chart and the point where the line z met the x-axis… thought at the point, it looked to me like revenue was lesser than total cost, so it should have been a loss but since the line was at 0. I assumed it was revenue-fixed cost. It’s quite confusing because I can’t seem to find a reference graph
@adam94 said:
What about the maximum price for element in target costing Mcq?I got 75 for the target cost. I think it was 130 and 30 (target price) and gross profit margin for the total was 64 and for the food alone was 9, so the gross profit margin desired on the accomodation was 55. So 130 – 55 = 75
Lolabun, I wasn’t sure about that one so I had to guess. Didn’t include the clerk’s salary because it was directly related to collecting and collating the information so chose the apportionment of the insurance cost only,9….I’m probably mistaken
For MCQ 2, I don’t think it’s fixed costs. Because fixed costs is a constant horizontal line on the graph, just checked the books to reconfirm. It should be either profit or revenue – fixed cost. I think revenue- fixed cost made most sense to me at the time
Yeah, got 12000 for relevant costing as well. I am not entirely sure the graph is revenue – fixed cost, but that was my answer
Can’t remember the figures or which option I chose but I remember calculating the operational variance by using the revised quantity (I think it should have been 9500 to produce the same amount of output after the 5% loss) and standard price vs actual quantity x standard price
@adam94 said:
What was the answer for ABC mcq in part A? Was the answer all options 1,2,3?I think I chose 1 and 2…the third one isn’t right because if large proportion of the cost was volume based, absorption costing would be better suited and cheaper to implement, I think
from what I can tell online debt/equity and debt/ debt + equity is both financial….apparently operational gearing is the effect of fixed costs on the relationship between sales and operating profits, but I have no idea how to calculate that
I chose the one that it was the maximum price the company would be willing to pay for one extra unit of the scarce resource…wasn’t too sure about that one