[tit1112]

Section B got rolling budget, which was a disaster. Then life cycle costing and CVP

Section C got Fitzgerald and Moon model and operational and planning variances.

Anyone got these questions pls?

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I put rolling budget as well.

The thing is that it was not stated in the question whether they were actually using a rolling budget.

And I also thought about ZBB

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Why have they have added the fixed costs of $620,000 to division A? If it states that it has been included in the fixed costs, please

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Ok, I understand. Maybe I am not preparing well and I have poor exam technique. Thank you

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Thank you so much

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I thought to do the same thank you for the advice

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failed for the 4th time with 45 marks.

Feeling very discouraged and disappointed

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thank you and for the legal fees should we add it as well to the cost of investment please?

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Can you explain why we take the market price of the parent when calculating the share exchange rather than for the subsidiary market price please?

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Thank you

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Hi, I still not understand.

Does it mean we have to remove the goodwill in the workings 2 of net asset of S at AD and RD? And as a result impact the workings on goodwill as we have to deduct the net assets of S at AD please?

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Thank you so much now it is more clear !

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thank you and concerning the deffered cash is it good?
and how to identify whether we have to multiply by the % of holding or not.(concerning the shares)

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even I spent too much time on linear programming and for the building block was very time consuming.

For section A and B it was quite good but i realised that i made 2 mistakes in mcq which were available in the mock exam 4 of the BPP book.The question was exactly the same!

Let’s hope for the best

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Ok.Thank you so much

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Allright sir! Thank you so much

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therefore incremental profit or loss means that we have to compare the price offered by external suppliers with the actual cost that the supplying division incur when manufacturing component L

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Thank you so much for your advice,that means a lot for me.

Actually, on my 3 last attempts I always got 1 question on section C that I couldn’t work out properly and score at least half that’s why i am focusing on section C for the remaining 2 weeks.

Last attempt ive got 44 and I left unanswered a question worth 20 marks on relevant costing

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oK thank you, i am actually working on some section C question and started reworking out the mcqs that I got wrong. For me I recognized that it is weak technique as I know the basics but struggling when I have to apply it in a question

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A manufacturing company, Man Co, has two divisions: Division L and Division M. Both divisions make a single standardised product. Division L makes component L, which is supplied to both Division M and external customers.

Division M makes product M using one unit of component L and other materials. It then sells the completed product M to external customers. To date, Division M has always bought component L from Division L.

The following information is available:

Component L Product M
$ $
Selling price 40 96
Direct materials:
Component L (40)
Other (12) (17)
Direct labour (6) (9)
Variable overheads (2) (3)
Selling and distribution costs (4) (1)
Contribution per unit before fixed costs
16 26

Annual fixed costs $500,000 $200,000
Annual external demand (units) 160,000 120,000
Capacity of plant 300,000 130,000
Division L charges the same price for component L to both Division M and external customers. However, it does not incur the selling and distribution costs when transferring internally.

Division M has just been approached by a new supplier who has offered to supply it with component L for $37 per unit. Prior to this offer, the cheapest price which Division M could have bought component L for from outside the group was $42 per unit.

It is head office policy to let the divisions operate autonomously without interference at all.

Required:
(a) Calculate the incremental profit/(loss) per component for the group if Division M accepts the new supplier’s offer and recommend how many components Division L should sell to Division M if group profits are to be maximised. (3 marks)

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ok thank you sir therefore i should not practice questions on study hub?

Should I practice only from both kits ?

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ok. thank you so much sir

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Thank you so much and for section C as it is my fourth attempt I have been tested on different topics.

So, is it possible that I might be tested on topics that were given to me in the previous attempt or other topics

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I have another question sir, there are only 2 weeks left for this paper and I have only been able to practice section A and B BUT still there are topics that i need to review again so i think that i would not be able to practice enough Section C questions on both kit. Will that be an issue for my exam preparation

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Thank you

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