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The best advice I can give is to practice as many past exams that you can. With tax it is difficult as the rates change so often but I got a revision guide from Kaplan which updates past exams to current rates etc. I have a young child so I self study and cannot attend any college days, but I make sure I do 2 hours a day on a weekday and a whole Sunday. Learn the rules but more importantly learn how to apply them in all situations. Good luck!!
Passed first time with 83%, no more exams for me I’m now an affiliate 🙂 🙂 good luck everyone!!
Yes @Farai that is the correct method. However as format C had the highest c/s ratio you should have found that at the highest demand this was most profitable, as the higher contribution covered the increased fixed costs. At lower levels of demand A was better as it had lower fixed costs.
Yes the question asked you to choose the most appropriate method. Takes the same time to calculate all three as calculating one as you use the same pay off table. There was an almost identical question in pilot paper and the same method was used. Calculate all using the one table and then comment on which is best for company.
From looking at the layout of previous exam papers, I believe the correct approach was to calculate the maximax, maximin, min regret and EV. The question asked for the methods for risk and uncertainty and these are the four methods as stated in the syllabus. I found the calculations to be straightforward and did not take particularly long. Once you have used the percentages to calculate variable costs then you can make up a standard cost and use this to multiple by the relevant demands. Using this approach project C was selected under maximax criteria as they were risk seeking and all methods showed positive returns regardless.
I feel this paper was fine, hoping for a good pass!