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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?
Screens were awful. I have complained about it as also spent so much time scrolling and resizing. If they are going to offer computer based exams then you need to provide adequate equipment where you can answer and be able to see the data/scenerio you are calculating/commenting on!
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
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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 xxxxAnd 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
I answered the Profit Table question the same although I made a mess of the selling price. Do you still get a lot of the marks even if you use the wrong selling price but follow through the workings correctly and laid out the table correctly ?
@ranganaherath said:
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 xxxxAnd 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?
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. 84,400Cost 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
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