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Divisional pricing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Divisional pricing

  • This topic has 3 replies, 3 voices, and was last updated 2 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 26, 2022 at 9:20 pm #669923
    aakarsh715
    Participant
    • Topics: 27
    • Replies: 7
    • ☆

    Can you make me clear what does this learning objective is about? I have some trouble understanding it.

    It’s from syllabus area E and learning outcome 4.

    Compare divisional performance
    and recognise the problems of
    doing so.[2]

    Does it mean we have to compare the divisional performance using one of the two models specified in the pm syllablus? Or we have to compare divisional performance using ROI , RI and other metrics enlisted by examiner.

    I have no idea about the second outcome. Recognise the problems of comparison?. Does it mean the problems with metrics used for comparison or the problem with divisions itself?

    November 4, 2022 at 1:35 pm #670662
    ashiraf@acca2020
    Participant
    • Topics: 0
    • Replies: 1
    • ☆

    hi John ,how does delay in payment of suppliers decrease capital employed of a division?

    November 4, 2022 at 5:58 pm #670676
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    aakarsh715: Exam questions specify which method(s) to use to compare.

    As far as the problems are concerned, it means the problems that each of the methods have (not the problems with the divisions).

    November 4, 2022 at 5:59 pm #670677
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    Ashiraf: Please open a new thread to ask new questions.

    Delaying payment to suppliers will increase payables, which decreases the net assets, and therefore decreases the capital employed.

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