Hi are these lectures also suitable for the september 2026 exam
J
John MoffatTutor·
Yes they are :-)
C
Chandel·
Hi Sir,
Are these lectures valid for June 2025 exams?
J
John MoffatTutor·
Yes they are - the syllabus has not changed.
J
John·
Hi John,
So I don't get the part where the fixed cost of each unit is multiplied by the demand in getting the TFC. I'm wondering why. Because that seems to make it vary as and when demand units changes. Can you please throw more light on that?
J
John MoffatTutor·
It is multiplied by the budgeted demand because that is what will have been used when calculating the absorption rate. That total is the budgeted fixed overheads and that total will be the same whatever the actual production is.
J
John·
Thank you. I'm good
M
Muhammad Ali Mohsin·
Are these lectures up to date for 2024?
N
Nishant·
for the profit part, can we just take $2 and multiply it by the number of units produced ?
K
Kriszta·
Hi John,
thank you again for the lectures, very useful!
When you say "In a situation where we are manufacturing several products, all of which use the same limited
resource, then we need to decide on how best to use the limited resource in production." how best, meaning maximising profit?
J
John MoffatTutor·
Yes, maximising profit :-)
A
Apeksha·
Hello Sir,
The solution in the free notes for example 2 is different there they have taken only material cost as the variable cost and other cost i.e. labour & other variable costs as fixed cost. Is it because they have mentioned in the question that "in the short-term only material costs are variable"? Is the solution behind the notes for example 2 wrong??
A
Apeksha·
okay got it i was seeing example 2 and you were explaining example 1. Lol sorry
F
faiza·
loved the lecture i had so many doubts (very basic but were annoying )
A
Aasif·
Thank you Sir..God bless you and Team Opentuition
M
Muhammad·
Is anything wrong with the website? I can't play the video in this website. I need to go to YouTube to watch the video.
J
John MoffatTutor·
The video is working fine. Have you tried again since? If you are still having the problem please post in the 'Technical Problems' forum and admin will try and help you.
https://opentuition.com/forum/technical-problems/
S
Sohan·
Sir, in case the question doesn't provide the fixed costs, we assume that the costings were done before having the knowledge about the limited resource. Do we also assume that volume was the basis for absorption? Couldn't we have absorbed it on the basis of machine hours?
J
John MoffatTutor·
We assume that the absorption was done on the budgeted figures before knowledge of the limit on the resource, as I explain in the lectures.
If you are required to absorb the overheads (which is not the case in this example) then the question will tell you the basis to use.
H
Hermela·
hello sir i am appreciating ur effort as always..
the thing that i cant understand is why we dont use absorption costing in this lesson? why we used the fixed cost per unit here?
J
John MoffatTutor·
Just as in Paper MA, it is marginal costing that is relevant for decision making because total fixed costs are not affected by the level of production by definition.
C
Claudia·
Hi John!
Thank you for the lecture.
To decide which product the company should produce full demand I calculated the Throughput per hour. Can I use this method interchangeable with the contribution or is there specific context for each one?
Thank you for your time!
Claudia B
J
John MoffatTutor·
They are not interchangeable. Exam questions will make it clear if they require you to use throughput accounting.
C
Claudia·
Thank you John!
J
John MoffatTutor·
You are welcome :-)
V
vivek·
Hi,
sir john hope you are doing great! i really appreciate the way you teach us but sir there is a humble request to solve more variety of questions in the topics so we can have an extra edge over the topic thank you.
A
adu·
Sir Please assuming for a example if you were told in the question that the company has a policy to produce at least 20,000 units of A, will the company ignore their policy?
J
John MoffatTutor·
It depends what the question is asking. Normally a company will not ignore its own policy!
A
adu·
Well Noted Sir Thanks.
S
shakir7385·
Dear John,
I am not able to sort out the difference between throughput accounting and key factor analysis.
J
John MoffatTutor·
Key factor analysis is to maximise the contribution. Throughput accounting assumes that in the short term the only variable cost is materials and that all other costs are fixed.
Have you watched the second lecture on this chapter?
In exam questions it is always ket factor analysis unless the question specifies to use throughput accounting.
I
Ikenna·
what text do you get the questions from.
i find it hard to follow the calculations when i don't have access to the question that is being solved
I
Ibrahim·
Hello sir, thank you for your effort and your appreciated time
J
John MoffatTutor·
Thank you for your comment :-)
T
tpile·
Sir is key factor analysis another name for limiting factor analysis?
If it is, how are we suppose to do calculations when there are two limiting factors?
For an eg: both material and machine hours are limiting factors
J
John MoffatTutor·
Yes - key factor analysis is another name for limiting factor analysis.
If there are two limiting factors then we use a technique known as linear programming - this is covered in a later chapter.
T
tpile·
Thankyou sir
S
saraheme·
Thank you sir. These lectures are amazing.
J
John MoffatTutor·
Thank you for your. comment :-)
K
Karina·
Hello, thank you very much for the lectures!!! I have a question with regards to the contribution per unit when using Throughput accounting. Isn't it calculated as Sales - Direct Material cost and not all variable costs? Thank you!
K
Karina·
Apologies, just realized that indeed this was an example of generic contribution and not for TRPA :) Ignore my question!
J
John MoffatTutor·
No problem :-)
M
May·
Sir,
If we calculate maximum profit by product. Is it same amount 60,000 for A and 20,000 for B?
If so, there is loss result for Product A.
Thanks.
May
J
John MoffatTutor·
Sorry, but I have no idea what you are asking. The maximum demands are 20,000 and 10,000 units and so I don't know where you are getting your figures from.
K
khavipriya12·
why is the fixed cost assumed to be calculated on the actual demand?
J
John MoffatTutor·
It isn't!!
It is calculated on the budgeted production, because by definition the total fixed cost will not change just because the actual production is different from the budgeted production.
J
John MoffatTutor·
johnak30: Yes, what you have done is a mistake.
As I make very clear in my free lecture, the total fixed overheads do not (by definition) change with the level of production and they are therefore the budgeted fixed overheads as calculated using the budgeted production.
J
jonak30·
When calculating the max. profit, I would calculate fixed costs using the quantities of optimum production: A 19.000 u x 3 $/u and B 10.000 u x 2 $/u
Is it a mistake?
Thank you in advance for your answer!
S
spyakurel·
I could not find the video of bottleneck but it is on the notes. Is it possible to get the video of bottleneck?
J
John MoffatTutor·
There is no video at the moment. However what is written in the notes, together with the example (and printed answer) should be sufficient.
J
joelsasi·
Well Explained! Thank you.
S
Siddiq·
Explained very well indeed
L
Lindelwa Sithole·
how long does it take for F5 self study
J
John MoffatTutor·
It is impossible to say - it depends on how much time you have available (whether you are working full time, for example) and how easy or difficult you find the topics. Most people manage to study for the paper within 2 or 3 months.
(In future please ask this sort of question in the Ask the Tutor Forum, and not as a comment on a lecture.)
Are these lectures valid for June 2025 exams?
So I don't get the part where the fixed cost of each unit is multiplied by the demand in getting the TFC. I'm wondering why. Because that seems to make it vary as and when demand units changes. Can you please throw more light on that?
thank you again for the lectures, very useful!
When you say "In a situation where we are manufacturing several products, all of which use the same limited
resource, then we need to decide on how best to use the limited resource in production." how best, meaning maximising profit?
The solution in the free notes for example 2 is different there they have taken only material cost as the variable cost and other cost i.e. labour & other variable costs as fixed cost. Is it because they have mentioned in the question that "in the short-term only material costs are variable"? Is the solution behind the notes for example 2 wrong??
https://opentuition.com/forum/technical-problems/
If you are required to absorb the overheads (which is not the case in this example) then the question will tell you the basis to use.
the thing that i cant understand is why we dont use absorption costing in this lesson? why we used the fixed cost per unit here?
Thank you for the lecture.
To decide which product the company should produce full demand I calculated the Throughput per hour. Can I use this method interchangeable with the contribution or is there specific context for each one?
Thank you for your time!
Claudia B
sir john hope you are doing great! i really appreciate the way you teach us but sir there is a humble request to solve more variety of questions in the topics so we can have an extra edge over the topic thank you.
I am not able to sort out the difference between throughput accounting and key factor analysis.
Have you watched the second lecture on this chapter?
In exam questions it is always ket factor analysis unless the question specifies to use throughput accounting.
i find it hard to follow the calculations when i don't have access to the question that is being solved
If it is, how are we suppose to do calculations when there are two limiting factors?
For an eg: both material and machine hours are limiting factors
If there are two limiting factors then we use a technique known as linear programming - this is covered in a later chapter.
If we calculate maximum profit by product. Is it same amount 60,000 for A and 20,000 for B?
If so, there is loss result for Product A.
Thanks.
May
It is calculated on the budgeted production, because by definition the total fixed cost will not change just because the actual production is different from the budgeted production.
As I make very clear in my free lecture, the total fixed overheads do not (by definition) change with the level of production and they are therefore the budgeted fixed overheads as calculated using the budgeted production.
Is it a mistake?
Thank you in advance for your answer!
(In future please ask this sort of question in the Ask the Tutor Forum, and not as a comment on a lecture.)