*** F5 June 2011 Exam was … Post your comments here and vote in Instant Poll ***

Exam paper was very difficult,i have practice nearly all possible exam question,non of them looks like Flexible Budget and Throughput Accounting questions.This two make me feel up sad,remain Question 1,2 & 4 was OK.I pray that i will at least get 50 :)).

any body remember the ansure of TPAR ???????
Q3 was veryyyyyyy difficult,,,, the rest of paper was really lovely…..

To b honest with u guys, that was a fair exam, it was just the time factor

how did u solve the pay off table?

yeah question 5 was ok

@dianaa said:
how did u solve the pay off table?

I had the three different production levels on the right hand side (350,000 bags, 280,000 bags and 200,000 bags), and the three different weather conditions along the top.

The contribution per bag was $5. Depending on the amount produced and the weather, I basically did (Production x $5) – (Difference between Production and Demand x $0.50), as if they weren’t sold it cost $0.50 to be scrapped.

That’s what I put, I hope it is right as I’d like the 8 marks!

Can anyone remember their answers for Question 4 part b), when working out the return on investment and residual income?

I think I got 15% for Division A, and 18% for Division B (ROI)

The residual income came out somewhere around $2.2 – $2.5m for each I think, although Division A had the higher RI.

With Question 5 and the Throughput accounting, I think I worked out procedure C’s ratio as 8.7 something?

Then for the mix I recommended that they fulfil demand for procedures B, then A, and then use the balance of the surgeon’s time on procedure C, as C had the lowest TA ratio.

There wasn’t enough surgeon’s time left to completely fulfil the demand for C. It think there was about enough left for ~500 procedures.

I do not think this is a difficult paper. If you did 5 revision Qs in this open tution alone you can get atleast most parts of 3 questions correctly ( maximax, learning curves and throughput). that alone will give you enough to pass. Also flexed budget is so easy so 4 out of 5 questions can be done easy.
Q4 was the only one tricky for me.
Thank you open tution

I got enough time to do 504 C procedures…

The question about the Air Conditioning company, I think I got:

P = 750 – 0.0015Q

My mind went blank with learning curves, but I got 1.06…ish hours from the equation. I’m not sure this is right though, as that would be the cumulative time instead of the actual time for the 100th unit. Although, even if I get it wrong I should still be able to get marks for the next bit?

Using the adjusted labour time I got the marginal cost to be about $50.54 ish and put that into the demand equation to get something like a selling price of $400.

Finally I after talking about the pricing strategies I recommended that the company use skimming as their patent prevented any competition for 2 years, and they should use a higher price to recoup the R&D costs and emphasise to customers how much more efficient their product is.

no u did not miss anything. that was the right thing to do in no 5

@nomipk3 said:
Hi,

How did you work out demand? Based on probabilities?

For part a) I didn’t work out demand at all. It said the company was going to choose to produce at one of those three demand levels. So I worked out the contribution at each production level, but where the weather meant that the demand was less than what had been produced, reduced the contribution by the unsold units x $0.50 to get the profit.

If that makes sense. It is hard to explain, and it took me a while to get my head around it in the exam.