ACCA ETHICS AND PROFESSIONAL SKILLS MODULE unit 7/unit 8

For EPSM 2023, I am stuck on Telford Engineering question (unit 8- question pertains to new accountancy department cost under 2 options), which has 2 options to select from- Option A and Option B. The calculation seems to be easy, however, I have tried all permutations and combinations but still unable to crack or maybe I am making some mistake understanding the question. If anyone is able to explain where the general mistake is made, it would be a great help. I am not asking for the answer, but a little help would be highly appreciated. Thanks in advance.

If you start at the beginning of this thread you should find sufficient advice https://opentuition.com/topic/acca-ethics-and-professional-skills-module-unit-7-unit-8-2

Unit 8 Accounting Department Cost Quiz. MEXIT

This is a new question that has never been asked in the previous old EPSM

Question 1

Calculate and compare the forecast total accounting costs in the year following MEXIT under the restructured in-house option (A); to assess which option will be most economical for Telford Engineering in the future.

Enter the accountancy department costs for Option A (to the nearest $M’000). For your answer only provide the first three numbers and do not include any symbols, for example, “543”.

Question 2

Calculate and compare the forecast total accounting costs in the year following MEXIT under the outsource option (B); to assess which option will be most economical for Telford Engineering in the future.

Enter the accountancy department costs for Option B (to the nearest $M’000). For your answer only provide the first three numbers and do not include any symbols, for example,

I am not asking for an answer! I am asking how I can answer such a question.

Reading the thread does not provide any answer because it is completely different from the previous epsm versions

I used the scenario and worked out the in-house cost and the outsource cost. I can email you the scenario to have a look at my work. none of the answers is correct. I have been stuck in this quiz for almost 10 days and I cannot find anywhere to help.

Hello saldhaheri,

can you please connect with me on DELETED for the understanding on the unit 8 questions plz

Hi. having issues with the two options question. Have calculated all possibilities yet answer remains incorrect?

Hey I’m stuck on Unit 8, Creating the report quiz.

Calculate the current sales profit margin percentage pre-exit (before MEXIT). State your answer to the nearest whole percentage and do not include any symbols, for example, “54”.

I cant see any figures talking about sales in either of the exhibits…

am i missing something

Question 2

Calculate and compare the forecast total accounting costs in the year following MEXIT under the outsource option (B); to assess which option will be most economical for Telford Engineering in the future.

Enter the accountancy department costs for Option B (to the nearest $M’000). For your answer only provide the first three numbers and do not include any symbols, for example

The achieve this answer

Take out the cost cost for the staff would resign pre MEXIT

The staff that remain calculate the cost for those that will be made redundant then find 25% i.e
– 2 partially qualified staff @ 30
-4 technicians @ 20

The other staff accounting cost will be amortization and non current assets which will be 40% less than their current cost or 60% of the current cost

Staff to be retained the cost will be increase by 20%

To the above remember to add the outsourcing cost and HOA

As a result of MEXIT, Telford Engineering had lost 30% of its pre-MEXIT export sales to CETA customers, due to increased trade and tariff barriers with CETA. (See P/L account before MEXIT in the spreadsheet). A new opportunity has now been negotiated to sell the original 30% post-MEXIT loss in CETA exports to a range of customers in alternative export markets on another continent. These can be sold at the same price, bringing the factory back to full capacity. The materials cost of these additional sales, as a percentage of sales to the nearest whole percentage, will be the same as it is currently (See P/L account one year after MEXIT under the outsource option in the spreadsheet).

Calculate the effect on net profit (to the nearest $M’000). For your answer only provide the first three numbers and do not include any symbols, for example, “543”.

Please I need help with this. Someone please guide me.

@Pawel321 please read the posts in this thread.

Yes “effect” is change. And if you read through the posts on this thread you should be able to solve.

@msadhan – please see this post about the outsourcing cost https://opentuition.com/topic/problem-in-calculating-outsourcing-cost