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

1000 customers Year 1
1000 new customers + (1000 last year – 500 left) = 1500 customers Year 2
1000 new customers + (1500 last year – 500 left) = 2000 customers Year 3
1000 new customers + 2000 customers last year = 3000 customers Year 4

You ignored the fact that customers left in Y2 and Y3. There was no revenue from them, and no costs.

i’m actually confused on where to start. All the sections were difficult. I’ll confess i was not well prepared but nevertheless i still HOPE for a 50%

section A, was okay

section B – CVP,ABC and Rolling budget; though these questions were not bad, i just struggled with the computer, the screen was small, i spent 30mins probably maneuvering the screen for the whole exam, it really pissed me off
tbh we should be given a choice of paper based or computer, and if its mandatory we use a computer, the screen should be big enough to view the content of the questions at once, this really got me soo annoyed yesterday to the point i lost concentration and i couldnt get back in to my head.

There is exam pressure already and i dont need anymore pressure from the computer. itsfrustrating

section C
i had relevant costing and transfer pricing, questions were not so bad

TP – 6
profit – 20,000 packing
radio- 1380000
total 1400000

when TP- 4
loss of 20,000
group still maintained profit of 1400000

when they bought from external supplier at price of 4

group profit reduced by 40,000

i think…

nope didnt get protein.

had relevant costing ;/

I got the Payoff Table too Did anyone considered the fc per batch where batch =500 units?
I Had Selling price – VC got the results and the i had minus the FC depending on the level of 3000 /3500 /4000 unit demand. What do you think?

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…

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.

@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

@treadstone417 said:
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.

Was it the one were you had 4 costs and you had to match it to the cost category? Cause I had that question too. In any case, here you go my friend!

I must say, I am bit surprised with the BPP study text not having the environmental cost categories….very strange. I thought that Kaplan didn’t have them either to be honest but as it turns out, it was 1 single page in the entire chapter…hence it might be a bit difficult to find them.

https://www.accaglobal.com/in/en/student/exam-support-resources/fundamentals-exams-study-resources/f5/technical-articles/Env-MA.html

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”