Answer to F5

I will post them up in the next day or two :-)

Well Mr Moffat...I for one am very much looking forward to seeing them!!!!

You can point out whatever mistakes I make :-)

Thanks, Mr Moffat! Will be waiting for them, especially for MCQs! :D

lol! Between the two of us (Gvt and I) we can probably get this thread up to 600 posts within an hour of your answers being presented!!

Haha Chris, I think we had evetything almost the same on mcqs, regarding open ones, i think we have already identified that minor deviations as well ;))

can you pliz tell me where i can have mcq answers f5? Thank you

Which answers? Answers to the ACCA specimen paper, answers to the OpenTuition mock exam, or answers to the real December exam? (if you mean answers to the real December exam then read the earlier posts in this thread)

Hi John Thanks so much for posting your provisional answers up. general consensus on the forum are that 9 and 20 are raising eyebrows. Us minions believe the answer to number 9 to be A. Main reason is that option 2 states tradiational...tends to under estimate overheads to high volume products. I would suggest it tends to allocate to higher proportion to higher volume and to lower to low volume and therefore correct answer is A. Number 20 - we don't seem to agree with statement D - that penetration pricing is suited to short life cycle and therefore most have answered A - that (ii) and (iii) are correct. Kind Regards Chris

I cant find ans in this thread?? Can sum body help.???

@sudir said: I cant find ans in this thread?? Can sum body help.???

F5 Answers are on the ACCA page: https://opentuition.com/acca/

Chris: 9 and 20 should both be A - a corrected version will be posted up soon. Sorry about that (I must have been sleeping while I typed :-) ) I noticed your comment asking why the ACCA could not post up their answers. To be fair, the reason is that often the Section B answers can be calculated in more than one way. (In this exam for example, the workings for mix and yield variances can be done in more than one way). What happens during the marking process is that if markers report people doing it in a different way than the model answer then the examiner decides whether the approach is valid and deserves marks (and will often add bits to the official answers to make this clear). Also, however many times the original answers are checked, there is always the possibility of mistakes, or ambiguous wording in the question that nobody had spotted. Again, it is during the marking that these sorts of things will be discovered and the marking scheme adjusted where necessary.

Thanks John for taking the time to put up the answers for us & thank you for your very helpful lectures.

Agree with Michelle - so much thanks us all - again!

Where are the provisional answers of F5 Proff. John ? Chris commented that he saw them but I can't find where ?

Answers are on the ACCA page: https://opentuition.com/acca/

Dear Mr Moffat, First of all, thank You very much for the answers! :) Secondly, I'd like to clarify one point. In open question 3 regarding relevant costing, it is said that the order given yo us should be completed in two weeks. It requires 50 m of wood. Currently, the company has 500 m of wood, 480 are used for other existing projects, 20 are left for free until 4 weeks. Why did we include the replenishment cost of these 20 m as relevant? The order is for two weeks, you dont have use for 20 m until 4 weeks pass, so i thought about it as the spare capacity, only included the purchase cost of additional 30 m. Isnt time range the most important factor here? Please, have a look. Thanks!

Dear Mr Moffat, First of all, thank You very much for the answers! Secondly, I’d like to clarify one point. In open question 3 regarding relevant costing, it is said that the order given yo us should be completed in two weeks. It requires 50 m of wood. Currently, the company has 500 m of wood, 480 are used for other existing projects, 20 are left for free until 4 weeks. Why did we include the replenishment cost of these 20 m as relevant? The order is for two weeks, you dont have use for 20 m until 4 weeks pass, so i thought about it as the spare capacity, only included the purchase cost of additional 30 m. Isnt time range the most important factor here? Please, have a look. Thanks!

And even if my logic is wrong, approximately how many marks will I lose on this question if did not calculate the replenishment cost, and included 10% apportionment to final answer, while my all other calculations on this question are right and I made some comments as well?

With regard to the relevant costing, since the material is in regular use it will need replacing - it makes no difference as to when it will be needed. If we use some for this contract then more will have to be purchases for normal work at some stage. I have no idea about the marking scheme - it has not been published yet. However each part is marked separately (the final total counts for virtually nothing) so you are not going to lose more that a couple of marks.

Thank you!

You are welcome -)

Dear Mr Moffat, I am referring to the answer to question 1 of F5 exam. The ROI of the investment of Div1 is 13.3%, the current ROI of division is 15%. Is it correct to choose to invest in the project? Thanks and best regards, bertos

Question 1 of which exam???

Question 1 paper f5 december 2014. Thanks and regards bertos

Isn't answer D correct? Neither Div1 nor Div2

The ROI is irrelevant, because the question says that residual income is used as the basis for the decision. Answer A is the correct answer (and you can find the workings if you look at our suggested answers - they are linked from this page:https://opentuition.com/acca/f5/ )

Thank you very much, really! bertos

You are welcome :-)

December 2014 exam Hi sir could you tell me if my answer is correct and worthy of marks for this question. question 5. part a) Material mix variance arise when there are a multiple number of ingredients which go into making a product and they are interchangeable to some extent. a favourable mix variance arises when a greater proportion of cheaper materials have gone into making a product and adverse when a greater proportion of expensive materials have gone into making a product. and if the mix is altered from the std input this effects the yield. a favourable yield arises if less inputs have gone into making output then expected and vice versa. specfically to this situation a adverse material mix variance has arose becuase a greater proportion of expensive ingridents have gone into making the soaps specfically more lye and coconut oil which cost more per kg in comparison to shea butter leading to an overall adverse material mix variance. as a greater proportion of expensive matierals have been used this has led to less wastage and hence more yield from the materials used in making soaps. giving a favorable yield variance. i also mentioned how the mix variance has further decreased from 5827 to 6000 from september to october. and how the yield has further increased from 9899 f to 1000 f. part b)ii i think the sales manager can be justified in his view that the change in material mix has caused a adverse sales volume variance due to the fact that less shea butter has been used into making the soaps which accounts for almost half of the input which goes into making the soaps this might of have had led to the quality of the product decreasing and hence customers being dissatisfied. there fore the production manager should be forced to change the mix of inputs which go into making the product or other wise the business faces the risk of losing customers which can have long term negative effects on the business. Can you please tell me what you think of my answer and how many marks do you think it deserves if any, Thank you very much.