*** F5 December 2014 Exam was.. Instant Poll and comments ***

What did everyone get for q1 section b as the price to be charged?

cause they were spending the most time – 3 are not enough

I think it was hard in a sense of time. You can actually get enough points by completing the big cases if you are good at those topics. But MCQs – each gives you only 2 marks, but most of them require calculations – very time consuming in total.

Very fair paper and mcq’s easy in comparison to bpp and Kaplan. I got TAR as 1.4 and 1.6 repectively. I left that question to last as hardest as far as I’m concerned. Finished the mcq’s in around 20 mins. In my opinion if you put the effort onto study then this was a very fair paper from acca.
Only one question on transfer pricing for goodness sake!! Agree with $16 and don’t take on manager as $1300 loss and all costs for target costing. Wish every paper were like this. So many tips on balanced scorecard you had to get this sorted prior to the day. Happy days and good luck all

Ps the $56 someone answered above ignores the $2 cost so $16
Is right!

Thought it was a pretty fair exam…
Mcq’s most I thought were okay, ended up having to guess a few, what did people get for the 60000 target profit?
Got the 16 shadow pricing, 1300 loss also b and d for the decisions of what to make due to dividing the contribution by the labour hrs.
Transfer pricing decrease of 78, just accept investment as ri calculation would have gave a negative for b

Got both TPAR less than 1 may of gone slightly wrong however still got most the method marks. Learning curve, realised I did wrong but only a few marks. Relevant cost was straightforward got 9000 something.

Balanced scorecard I thought was a fair question, and the variance question got 5k adverse mix and 9k yield.

Regarding the bottleneck activity – if you divide the number of salon working hours for, say, one week, on a time spent by every specialist on a client, you can see, that the number of clients senior stylists can serve is much less than other specialists do.

Tfr price decreased profit in closing div a as $140 to buy in and only $100 to make. Therefore loss was $65 per unit from memory less $10k saved for closing division and fixed costs saved etc.

I got a decrease of 78000 as the mc was 100 and they were considering buying it in at 140 so the 165 transfer price effectively netted out until nil between A and B
That’s what I thought anyway

$40 loss per unit x 2200 units and then add back saving on fixed costs

I guess when you say increase in profits, you forget that question asked the companys profit, not divisions. WHen division A made profits when it sold to B, company made profit. so when it shut down, company made a loss

Because you can make for $100 and you’re now going to buy for $140. As a company this is more expensive.

Really this is a make or buy decision, not a tfr price decision.