*** ACCA P5 March 2017 Exam was.. Instant Poll and comments ***

@chullbulla said:
Yes It was not easy to find KPI’s. I just mentioned about how many people visiting superstores and what parentage of young people buy and blah blah.

I can’t remember 3a or 3b tho

Sorry dear am confused.. u talking about confermance n non confirmance cost this relates to TQM.. target costing is somthing else… Am i right?

Rasib, yes this relates to TQM. However TQM here is used as an instrument to reduction of cost gap which is target costing issue.

Guys, how do you answer to this question #2, part b? I just want to know the main idea 🙂

Tommy, right i also suggest stuff like yours.. ?

i thinking the same too… why no one did Q2….

I have the very same frustration. 🙁

@chullbulla said:
If primary currency weak you receive more money means revenue increased by 15% for six months 4000 X1.15 = 4600 for six months and 4000 for first six months

I did it this way:

x = per month cost

6x + 6x(1.15) = 4800

I found this paper very tricky…all the questions required one to think a lot and that resulted to me running out of time.

If i happen to pass this paper – i shall praise the Almighty God – with God anything is possible.

Meanwhile i have started studying the same paper ..so that if i don’t make it – June 2017 will be my another exams session.

For those of you who are in the United Kingdom, please be my study buddies – i need help to go through this paper. I need to do alot of mocks and other exams materials.

Please help a brother.

For Q4a, I said she does not deserve any bonuses, as:
1. The total revenue should have been adjusted by 600 (4000 + 4000x(1-0.15) = 7400), so a (600) c.u. less to profit;
2. Depreciation – I’ve adjusted 350 c.u. as (385 – 350), assuming that purchase and put in service of new equipment has impacted significantly the npm, whilst took 35 c.u. charge from domestic unit as a reference point. Anyway, it’s an assumption;
3. As for HQ costs’ allocation – i did nothing, however I was very clear in supposing that both domestic and export divisions are in the same conditions (same split structure, based on revenue approach), so even if not controlled by the manager, it’s more or less fair to charge the Export division, also considering that Domestic division has been charged too, however it has reached the 8% threshold. I can’t recall the exact figures, but I got around 5% npm. Anybody followed any of my steps?

The domestic currency depreciated, and the firm sells overseas. Therefore the revenue is INFLATED as the foreign currency earned has appreciated. Therefore 600 additional revenue (and profit as cost in domestic currency) meaning she does deserve the bonus.

This is very topical, and probably based around brexit. Anyone with any business knowledge will know the £ has recently tanked against all world currencies by c. 15%. The effect of that has been a boom in revenues and profits for exporters, such as dometically based manufacturers) which was the case here.

This is also partly the reason why the FTSE 100 rallied so strongly after brexit. The £ tanked, and many firms like shell pay dividends in $. A weakening domestic currency led to an appreciation of the dividend yield making it more attractive for uk investors when it was converted to £- exactly the same concept as for the firm in the question who was selling abroad and their domestic currency tanked 15%.

@vitalbutnaru said:
For Q4a, I said she does not deserve any bonuses, as:
1. The total revenue should have been adjusted by 600 (4000 + 4000x(1-0.15) = 7400), so a (600) c.u. less to profit;
2. Depreciation – I’ve adjusted 350 c.u. as (385 – 350), assuming that purchase and put in service of new equipment has impacted significantly the npm, whilst took 35 c.u. charge from domestic unit as a reference point. Anyway, it’s an assumption;
3. As for HQ costs’ allocation – i did nothing, however I was very clear in supposing that both domestic and export divisions are in the same conditions (same split structure, based on revenue approach), so even if not controlled by the manager, it’s more or less fair to charge the Export division, also considering that Domestic division has been charged too, however it has reached the 8% threshold. I can’t recall the exact figures, but I got around 5% npm. Anybody followed any of my steps?

SO I can remember what was in the March exam (as I will undoubtedly be resitting it):

Q1 Based on a Facilities Management Company (not a business I’m familiar with)

KPI’s (operating profit margin, secure orders, manager retention, order book)

mission statement was to maintain profit for shareholders and retain staff to become world class and maximise efficiency (or something like that)

Q was to evaluate assumptions & definitions built into KPI’s, how do performance indicators link to mission statement/strategy, evaluate rewards of staff (2 options)

Q2 target costing & Kaizen

Q3 Geeland – Jayland KPI suitability
retail store & rewards for staff (bonus)

Part A) 5 marks B) 8 marks Part C) 12 marks

Pick 3 social performance indicators for Jayland to measure against mission (mission to take advantage of increasing incomes & population movement into Jayland)

and to increase brand, promote quality products in right geographical areas of Jayland

Q4 Net profit (divisions) export manager (reward/bonus) & EVA