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Did anyone get section C question where you had to work out the ROCE and RI of division C the same way it was worked out for Division A and B?
I couldn’t figure out how it was calculated?
Anyone knows?ROI was operating profit/(current assets + non current assets – current liabilities). RI was final profit – (non current assets + current assets – current liabilities)*0.08
Exam was really tough though what did people get for the section B answer for variances?
I had that section c question, I think I managed the ROI but my mind went blank on the RI. Does anyone remember what they calculated?
And what where the shortcomings of their performance evaluation- was it specific to the calculations of ROCE and RI or where they the generic reasons (cons of ROCE and RI e.t.c)
I took it as the non financial performance objectives and the fact the equipment was old in one depot, size of departments and the manager being in control of revenue costs and volume was my 4
I did similar too and included that head office was responsible for investment decisions and the fact that customers were complaining about waiting times so could use the use of non financial performance indicators as well as financial…
What about the budget question were you supposed to flex the fixed costs or keep them the same?
I took everything the same as the old budget divided by 2 and only changed the ones that they mentioned
I think we should took budgeted and flexed based on actual level units. And simply dividing by 2 doesn’t mean that it is flexed. Am I right?
Regarding multiple choice question, the one which required to calculate throughput accounting ratio, As I remember selling price was 30, materials was 10, labour was 3.5, factory cost per day was 250,000 and there was 1500 units per hour, and the limit was 10 hour per day. How did you calculate it?
You needed to divide by two to reflect the fact that we are budgeting for a half year
What flexing the budget means that we need to calculate actual level which was for 6 month already, isn’t it
This exam attempt was awful – definitely will be resitting in March 😐
Had transfer pricing in section C, which I find extremely difficult!I thought the columns for the budget needed to be budget divided by 2 as it’s for 6 months. Flexing the budget as per what the mentioned in the question, actuals and the difference between flexed and actual
You needed to revise the original budget to half year and then flex that to the actual quantity
I got 1.8 as the factory costs was for all 3 so needed to divide that by 3 and then take it as normal not sure that is right though
Ah not good for the budget I just divided by 2 for it all in the flexed except for the things that they mentioned. That is causing a resit because that’s going to be like 8 marks dropped
If thats the only mistake you wont loose eight marks as you get marks for revising the original and for working out variances even if the figures were wrong so you might have just lost 2 or 3 marks!
I got the variance calculations, one on shadow pricing of the 2 products and can’t remember the last one
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