PM*** ACCA Paper PM December 2019 Exam was.. Instant Poll and comments ***

nope didnt get protein. had relevant costing ;/

I got the rental cars question for section c which had for us to calculate ROI and RI for the first 4 years and discuss problems on the using ROI and also the profit for the protein bar company using a payoff table and find the expected value and also the value of perfect information Section B had a throughput and a rolling budget one and also another question I can't remember what it was? Sec A was abit tricky

This is what I done for the pay off table Price Demand $35. $33 3000. 69,000. 63,000 3500. 80850. 73850 4000. 92400. 84,400 Cost was I think was $11.90 (. This includes distribution 4000x 35 – 4000x 11.90 I didn’t use the FC Let me know your feedback on the expected values I used the results above n worked the probability for each demand

I also got the payoff table in section C questions and the performance analysis as second question in this section. The payoff was so confusing... I've done some calculations but I am not sure. For the profit calculation I took into account the contribution (calculated based on selling price and variable costs) and both distribution and fixed cost. For section b I got ABC question, rolling budget and linear programming - pretty ok, from my point of view. section A was pretty weird, and at the beginning I was worried about the theory questions from this section and I was thinking that if all the exam will be so confusing it will be a mess, but things improved so I hope I will pass. we'll see in January...

On section C got the question on variances usage, mix and yield on plants. Hey couldnt even see wether l was coming or going. Then another question on ROI and RI. Hoping for a pass come January.

In section c I got the ROI and RI for rental card question and the payoff table. I took into account the distribution cost and fixed cost for the payoff table. Does anyone remember the results for this two questions? In section b I got throughtput, rolling budget and I can't remember the third.

@alexf said: I have same question about Golden Ave The scenario was something like this "The bank introduce Golden Ave card for four year. Total advertising costs was 50000. Every year new 1000 customers coming and paing for each year $300. 500 customers cease card after 1 year and another 500 customers cease card after second year. Bank spend $400 for first year support and $50 for second year support". The question was something like this: What is life-cycle profit per customer? Answers somthing like this A $12.5 B $15 C $22.5 D $25 I'm spend time and at the end decide to guessing $12.5. Today my solving is: Costs: 1000customers * 4 year * $400 = $1600000 500customers * 4 year * $50 = $100000 Advertisement $50000 Total costs: $1750000 Revenue: 1000customers * 4 year * $300 = $1200000 500customers * 4 year * $300 = $600000 Total revenue: $1800000 Total profit: 1800000-1750000=$50000 Profit per customer: $50000 / 4000 customers=$12.5 I think my guess was right

Hey alexf, I didn't get that question in my exam, but there is a question exactly like this in the BPP P&R kit, which I attempted a few days ago. The P&R kit states that it appeared in the March 2018 exam. The answer debrief is in the examiner's report linked here: https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f5/examinersreports/f5-examreport-march-2018.pdf Good luck!

I do not think that I will pass the exam. I underestimated the difficulty of this exam and I did not allocate sufficient time to study.

Is there anyone who can explain me one thing: In A section was question about Internal environment failure cost????? What the hell is that???? I can find nothing about these costs in BPP study text.

@patrykk6 said: What was your profit for packing and radio divisions and for company as a whole in sec C question with TP? Anyone remember?

Radio division $138 000 Whole company $140 000

Did anyone get the rental cars question for section C and what were the ROIs you got Were they 12% for year 1 and 24% for year 4? And ROI 100 for year 1 and -500 for year 4?

And in Section A Question 1 relevant costing for a 1 off contract price of material were 1280? Question 5 margin of safety which had a sales commission which is considered as a variable cost the percentage was 44%? Question 12 Market size variance Market share variance Sales price variance "fill in the blanks"

I got this results for ROI 12 in year 1 and 24 in year 4, for RI I got different than yours

@ranganaherath said: Did anyone get the rental cars question for section C and what were the ROIs you got Were they 12% for year 1 and 24% for year 4? And ROI 100 for year 1 and -500 for year 4?

I got this results for ROI 12 in year 1 and 24 in year 4, for RI I got different than yours

The interest charged on cost of capital doesn't change with depreciation right? If cost of asset was 10000 and cost of capital was 11% it is the same for all the years right? 1100 for all 4 years?

It seems we got the same paper. Got stuck with the ABC questions. Got 1 secB on ABC and 2 ABC in secA . I got relevant cost and transfer pricing in sectionC. It was quite hard to do. Really struggled with that paper. Thought i would get NFPerformance variance or budget in sectionC in vain. There was absolutely no questions on TP accounting, learning curve ,LCC. Hope we pass ?

i think we should take a away the deprecation from the cost capital and the cost capital should be calculated at the cv(begining of the year)so lat year it was i think 2500*the cost capital ithink it was 12%or 11% then deduct it from operating profit and my answer was the same a yours for the ROI was 12%and 24%for last year

so isnt there a way ACCA could make CBE optional? i really dont like this CBE.

PERFECT! You got it right! that's exactly what I got :)

In the budgeting question for sec B, for the question where the management didn't know what was the use of that division was it zbb to be implemented or incremental budgeting?

i dont know, i chose incremental, changes in prices and activity were relatively small

True, but they had mentioned that they wanted to reduce costs also that they didn't know what exactly was the benefit the company had from that division so shouldn't it be zero based budgeting as it is a discretionary spending. It would be great if someone could help me out here cause I struggle with the concepts of budgeting

And for the profit table it should be demand vs supply right? Supply Demand 3000 3500 4000 3000 xxx xxx xxxx 3500 4000 xxx xxx xxxx And also the profit should be the same if the supply was 3000 for all 3 demand levels and if supply was 3500 it should be the same for 3500 and 4000 demand level but for 3000 demand the costs should be reduced Did anyone use this approach for the profit table?

This was the approach I used. Spent more than 30 mins on this one wondering how to present the working.

True it took alot of time, and still found it hard to get the correct answers there was alot of work that needed to be put in so time was a constraint. I would like to hear how others felt about the paper. How confident are you on passing cause even though I know I tried my best I have a feeling I've not done enough to get through

If you got the selling prices wrong it means you have gotten most of your profits wrong so you'll lose marks for the answers but you will get marks for other calculations like if you had calculated the contribution from 33 price and 35 price separately and also if you used the value you calculated as profit to find the expected value you'll get some marks for using the figures you calculated correctly though it won't be full marks you will be awarded some marks

This is what I done for the pay off table Price Demand $35. $33 3000. 69,000. 63,000 3500. 80850. 73850 4000. 92400. 84,400 Cost was I think was $11.90 (. This includes distribution 4000x 35 – 4000x 11.90 If I remember the question they didn’t know which price to charge . But loOking at yours it makes more sense .

I really messed up that question. At first I setup the table as you did, then I second guessed myself, re-read the question several times. In between talking about how risk averse the director is, it does say something to the effect of "prepare on the Probability method", or at least that is what I then focused on, after re-reading the question several times. I then redid the calculation on the Expected Value method but ran out of time. I will get marks for the selling price but I rate I messed up the decision making portion of the question