*** F5 June 2013 Exam was… Post your comments ***

What recommendation did you gave to the gym on the decision tree? My result showed that it is better to do the expansion and the best outcome was on the branch of increasing the memberships to 6500. I roughly remember that the benefit was at about 480 000. What did you receive on this Q?

i forgot the formulas of sales mix and quantity variance and value of perfct info and some difficulty with dacision tree also

🙂 :-* :O

it is good to know that most people liked the paper,

<cite> @malikhasnain said:</cite>
when the solutions will be available ? 🙁

did you find out anything about solutions or draft solution available or marking scheme available?

decision tree should be multiplied by 3 ?? or not ?? as it wax written that info for next 3 years is as follows … and if multiplied by 3 so ans were too long ??

<cite> @rameezkirajih said:</cite>
question 5 …. inflation should be added or not ?? coz board of governance said new budget to be prepare on notes .. so no inflation was given or cited in notes there was just increament or % used plz any 1 reply….

I did not multiplied twice on 2% and 3% as decided that it was already given in notes, but overlooked 6%

<cite> @anastell said:</cite>
The Q5 says that
$30,000 of the costs for the year ended 31 May 2013 related to standard maintenance checks and repairs that
have to be carried out by the school every year in order to comply with government health and safety standards.
These are expected to increase by 3% in the coming year. Also it is given that the inflationary adjustment is 3%.
My understanding is that the maintenance checks and repairs would increase for the year of 3% *more maintenance will be performed) and also there is inflation of 3%. So I have adjusted the amount with totally 6%. The same with the other 2 point in that question.
Is it correct?

I thought the same as you, they play some tricks(given the same number) with the number of inflation rate and the incremental cost(in percentage) next year.

IMO, I done all the calculations including incremental cost. After all I add all the inflationary rate to come to the final figures.

I think no inflation rate should be added in ZBB variant. It doesn’t make any scence! Because the principle of ZBB is to review all the costs you have and put the final number in the budget! It’s like: “all right, in the following year we have to do that and that, and we expect it will cost us X”. Why would you add any inflation to that?

oh yeah! mighty Zeus, have a mercy!

No, we were not.
a) considering the views of the board of governors… recalculate the surplus/deficit (no incremental budgeting is mentioned).
b) discuss
c) outline
d) discuss

<cite> @opentuition_team said:</cite>
Post your comments about June 2013 F5 exam.
How did you do? How did this paper compare to previous exams?

Vote in our Instant Poll
[polldaddy poll=7146480]

It was hard for me but i discovered this open tuition late. I thing If i start early using this open tuition i will succeed.

q1) decision tree
a) go ahead with expanding as overall ev was 585 after deducting capital cost of 360 compare to not expanding was 420
b)to get max price need to calcuate ev with perfect information less ev without perfect info from part (a) which was about 184

q2) was wholly discursive

q3) revised life cost per unit

material 7.20+14.40 = 21.40
labour =10.60
warranty = 1.8
something else = xxx
total mc was about = 65.xxx or 67

extra unchanged cost =60

expexted selling cost was 192 compare average market price of 150 so it was suitable to use market skiiming price for com

Q4) variance analysis was easy as component 1 planning was fav and operational was fab and comp 2&3 vice versa, generally performance of business was good as well purchasing managers cos overall mix and quantity was favourable due to more use of quality product which help boost of sales quantity

Q5) revised budget was deficit of around 87000 and it was advisable to use zbb for newtown school.