PM*** December 2023 ACCA PM exam – Instant Poll and comments ***

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

What did you all get for section B questions?

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!

Anyone remember what the section b questions were

What is barrier in this exam? 51?

I got the variance calculations, one on shadow pricing of the 2 products and can't remember the last one

Pass mark is 50

I had transfer pricing in section C, actually found section B okay but struggled with A & C Actually left some of section C blank which I’ve never done before!! Hate this exam soo much??

Part C also involved description of profit center, investment center and revenue center. This wasn't included in LSBF material study, am I right?

I think you may have had the same exam as me… Section C I could have cried when I saw it was transfer pricing!

Always interesting to see what other people had in their section C, and I'm writing a decent detailed impression of mine here below cause I for one really find it useful when others do so. I also had transfer pricing, calculating the revised profits of the two divisions (10 marks) then asked to comment on how would the transfer price change if one division has doubling demand in the next years (like another 6 marks maybe), and then finally to discuss three benefits of transfer pricing (4 marks). Here on the last one I got completely flustered and went, "for the purpose of goal congruence when it comes to maximising profits of the parent company" and also "for taking advantage of price discounts or other brand deals that a division would not normally achieve elsewhere on the market" (sounds like complete Waffle to me and I couldn't come up with a third) Then my second question was on activity based budgeting. The reading and planning part of this exam took me SOOO long because it was not in the usual layout (when it comes to the cost pools and the cost drivers). Very confusing and it had a couple of sub sections on it with extra bitty calculations, probably like 16 marks altogether I'd say. Then finally the 4 marker was to discuss ways that companies deal with risk and uncertainty so I chatted a little about attitudes to risk, expected values, perfect information, trying to tie it back to the study case. I reckon having seen what some of you guys had in the other version of the questions, (with ROI and ROCE) I'm considering myself a little lucky today. Praying for a pass! Also section A and B were SOLID. I think I was only absolutely sure on the answer on 15 or 16 questions... x_x BTW. This is a resit for me. I genuinely genuinely am starting to believe that's its all down to luck of the draw. (Which is a really sad realisation lol)

Yeah you flex based off activity level and the fixed costs you do for 6 months

Yeah same section c tp question ?. What was the profit tho ?