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there was a question to compute ROI of division so it appears to be acceptable ,a profit and loss statement was given including gains of assets sold ,allocated head office cost,dep relating to uncontrollable asset. It was said in q that Head office sold equipment also division was engaged in selling of goods to overseas buyers subject to exchange rate variance ,managing trade receivables
Non ca AND CA of both division and head office is also given
am I right in computing profit just by including revenues and cost that are controllable by division since division doesnt seem to involve in buying equipment so gain belongs to head office records and exchange variance is beyond is control and i took dep which on controllable asset …since only controllable divisional elements are taken assets AND ca of divisional are only one i took as denominator ,
Head office Assets and ca were given in ques
It would help if you said which question it was and then I could give you a more precise division.
Controllable profits are relevant when we are measuring the performance of the manager – then we only look at what the manager controls.
When measuring the performance of the division as opposed to the manager then normally it is irrelevant whether or not things are controllable by the manager.it is question 32 in today ‘s exam paper …The sub section of this particular question asked what are the assumption you made !!! so you mean to say i wont b rewarded for this ? no marks will given ?entirely wrong ?
this question weighs 20 marks 4 sub section
1)To calculate ROI of both division perfo
2)assumption you made in the case above
3)disadvantage of roi (4marks)Hi, what is the right answer for the question: Which one is not helpful about the information security in a company: – giving universal password for all users or monitoring e-mails? I chose universal password as everyone can access all information which is undesirable
I am sorry but I have not seen todays exam paper and so I cannot really help.
Your answer about the passwords seems correct, but again I have not seen the question or the other choices of answer.
With regard to question 32, again I have not seen it but why on earth should what you wrote be entirely wrong? I don’t know what you wrote but in the long-form questions you will get marks for anything you wrote that is correct – it is not 4 marks or 0 marks.
Will the exam question and its answers be published ? 🙁 atleast I can access my marks
I am not sure what will happen this time.
Normally they do not publish the questions and answers for each exam. Instead they publish a ‘hybrid’ exam questions and answers every six months, which contains a selection of questions from the two previous exams.
So usually, in a few weeks time they would publish a selection of questions from the September and December exams.
However, because of the change in the exam format, they published the whole of the September 2016 exam. Whether they will therefore publish the whole of the December 2016 exam remains to be seen. I think that they might just publish the two long-form questions from Section C.
“With regard to question 32, again I have not seen it but why on earth should what you wrote be entirely wrong? I don’t know what you wrote but in the long-form questions you will get marks for anything you wrote that is correct – it is not 4 marks or 0 marks.”
As you said to evaluate the performance of division both cost(HO &DIVISION) are taken irrespective of it being controllable or not and my assumption and calculation were based on controllable elements by the manager so how would they award me the marks …?
“Hi, what is the right answer for the question: Which one is not helpful about the information security in a company: – giving universal password for all users or monitoring e-mails? I chose universal password as everyone can access all information which is undesirable” “Your answer about the passwords seems correct, but again I have not seen the question or the other choices of answer.”
Sorry to butt in ,but doesn’t monitoring emails too least useful in securing confidential information ?/as emails too can be accessed by the company so do universal passwords after all information transmitted or records will be kept in company’s server right …so doesn’t this one too least useful?
Because presumably you proved that you knew the ‘formula’ for ROI, and that alone would get marks, even if all the figures used were wrong.
With regard to the emails, again it is difficult for me without seeing the whole question and the choices of answers, but monitoring of emails could make sure that confidential information being sent to the wrong people was discovered and stopped.
Ohh thank you for the valuable time.I came across this(below) in student forum seems like question was to calculate performance of the manager .So in that case i got it right ^_^. Only thing I have doubt on is exchange rate variance . Students say that since manager giving 60 days trade credit they would have already made provision and hence controllable.But it is still external and beyond its control,how can he made be responsible for its cost :/ i excluded that item in ROI calculation 🙁 just like why we have split variance to planning and operational…Managers are responsible for operational variance and exchange rate appeared to be planning.I guess i applied concept of standard costing here 😛 besides this ,other elements which i excluded seem right
forum -{“””q32, Gain on sale of asset, and cost of closure of company were both excluded because we were supposed to assess the divisional managers performance as asked in the question and both of these decisions were made by the head office, thus uncontrollable. Excluded depreciation on exchange rate too.””””}
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