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BPP question 66 on Plot Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › BPP question 66 on Plot Co

  • This topic has 3 replies, 2 voices, and was last updated 2 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 14, 2022 at 7:41 am #668578
    guyver101
    Participant
    • Topics: 33
    • Replies: 28
    • ☆☆

    Is the reference to short term financing at 5% a red herring? I added 5% onto annual cost but the answer doesn’t.

    Qu: what is total annual cost of current purchasing policy?

    Set up:
    annual demand 300,000
    Order placed every month
    Order cost £267
    Holding 0.10 per unit per year
    Buffer 40% of one month’s sales
    Short term finance cost 5%pa
    365 days pa

    Book answer $5454
    my answer $5727 (ie 5454*1.05)

    Thanks

    October 14, 2022 at 3:09 pm #668609
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    It is a bit unfair in that the intention was for the 5% to only be relevant to a later part of the question.

    Something similar happened in a Section C question in the real exam, and the examiner realised it was wrong of him and so made it clear that full marks would have been given if the 5% had been taken into account. So he will have learned from his error and you do not need to worry about this happening in the real exam 🙂

    October 14, 2022 at 4:48 pm #668633
    guyver101
    Participant
    • Topics: 33
    • Replies: 28
    • ☆☆

    Thanks John, much appreciated

    October 15, 2022 at 11:40 am #668679
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘BPP question 66 on Plot Co’ is closed to new replies.

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