PM*** F5 June 2014 Exam was.. Instant Poll and comments ***

Hi all. How do u think u done? I thought it was easier comparing to ones I have seen, but time time time. Surely lots of mistakes just in silly things

Same here I just couldn't finish the last variance question :( But it was a fair paper so fingers crossed

I managed to answer all questions, except the third one, which I find it the most dificult. I did only calculations for that and poor answer in commenting. Yes, it was a fair paper.

I did a payoff table for q4 but I don't think it mattered aslong as you stated 6 different profits. I thin q3 the transfer pricing was really hard. How did everyone tackle that?

Question with payoffs - yeah, was pretty easy, you just needed to find profit based on level of sales volume, var.costs, advert.costs and fixed. 2nd part of this question is just multiplying payoffs of each decision by the probability, pick the higher one (option 1 right? $30). and for the maximin i guess the answer was also option 1. pick the worst outcomes and choose the highest among them. Am i right? :D

The paper was very easy although i made silly mistakes in ABC and Variances. The Risk & Uncertanity and Linear Programming questions were the best. I think maximin answer was $35

Think it went well overall. Q1-Q3 took 2 hours. Q4-Q5 1 hour. Transfer pricing was hardest bit. Think full marks on ABC and linear programming. x is 20000 and y is 66000 i think . There were bits in ABC q to trick you up like on batches and purchases per batch both needed sorting out to get correct cost driver nunbers. Wrote loads on the last bit of Q5. I totally blanked on tranfer pricing decision, wrote something down in last 5 mins of exam. 1 down 2 to go!

@Essem : LOL i did exactly the same used C/S ratio to calculate Std Mix :P hoping to get some marks atleast

As for variances, to find Standard profit margin aka contribution (in order to multiply it by budgeted and actual volumes of sales) i did: Sales prices were given at the beginning and i put it here - C/S = 50% and 44.4% (as long as i remember) to find C. Anyone?

In Linear Programming My Result is X=20,000 & Y=66,000 But Most Of The Students Saying X=55,000 & Y=66,000 So Whats The Correct Answer Guys?

Anyone remembers Q1 a) b) answers? at least for product X. For me the difference between Absorption and ABC was in 10-15ish Cents. very similar answers under both methods...

Aleksandr & Essem: For Product X ABC Is Jus a Little Bit Higher (Both Are 90 Something) For Product Y ABC is 83 Something & 92 Something in Absorption For Product Z ABC is Higher

hi guys, it was really stressing mainly question on transfer pricing. For the paysoff table i was confused i didnt know if Advertising should be added for the six outcome or not. Concerning linear preogramming x= 20000 and y=66000

I thought it was a fair paper, 1,3 & 5 were all pretty easy. I thought I did well in Linear Programming but no-one has got the same result as me :( Did crap at Q3, really expected Not For Profit to come up instead

redz, i think i got pretty much the same answers) high chances we are both correct.

essem - you subtract FC to find profit. X times X's contribution + Y times Y's contribution - FC. My guess. Though i got very different quantities for X and Y from those mentioned above. Pretty sure i f*cked them up somewhere))

Essem: In Linear Programming Fixed Cost is i Think 640,000 or 64000 Given in The Question. But It Was PER MONTH & We Were Working On For The QUARTER So i MULTIPLIED The Fixed Cost By 3.

I got something like that too :) woohoo!

i really fluffed linear programming, payoff table, transfer pricing and variances…..so basically 80% of paper. i still cannot believe how every one seems to have solved linear programming ? can someone be kind enough to say what were the two scarse resources? 1 was direct labour hours , what was the other one ? and how did you all solve linear programming in general. i still can't believe i fluffed linear programming which was my fav topic

Heeyy For question 1 x didnt change much y reduced z increased 2) y=66000 x=20000?? 3) Was a terrible question. 4) for maximin it was between 742000 nd 740000 i think so you go for 742000 which is $35 5) you used the contribution to sales ratio to get the standard contribution per unit for the first two calculation i think. The mix I got an adverse and the quantity I got a fovourable variance. Anyone got the same?

In my Linear Programming Q I got X=0; Y=90000 Max Contribution = 3.6 mil Less fixed costs for quarter: 450000x3 to get profit.

does any one remember the linear programming constraints ?

i Think 24x+10y<1800000 10x+30y<1680000 42x+20y<720000 X<70000 Y<85000 X,Y>0 Contribution=30x+40y

There were 5 constraints 2 of them were for demand. I got y=66000 but dont remember x

And my profit in the linear programming question was 1,360,000 i think

Mine Was Same Ahmed :)

i completely forgot about the equation for the linear question but did my calculations based on contribution per minute and my answer gave me x - 20000 & Y 66000. I mixed minimax & maximaxi up and talked about the rule being choose the best outcome and chose £30 then worked out the totals for each and deducted the fixed costs and advertising costs and chose the best out of the 2. hopefully will still get me some marks. question 3 - i did the transfer pricing same kind of example we have learnt through this lecture. Gearbox division could save 5% so i calculated 5% of 7550 (i think that's the amount) and deducted from the sales figure which would give the maximum price they are willing to pay. and then worked out the 40% of the 7550 to give the variable costs and deducted that from the 7550 to give minimum C co would be willing to transfer at. Absorption costing - i added both products total costs together then added the indirect costs - as reading the question it said calculate full production costs and then divided by total number of labour hours which gave me 31.something question 5 i put actual units at budgeted contribution actual units at actual contribution sales budgeted units actual units then mulitplied the answer with the actual sales per unit. ROCE used revenue instead of operating profit but discussed that it was a way for the managers to look at the income based on their investment, how much money they are making to the investment amount. asset turnover - i used operating profit/ capital employed - as i couldn't see a total asset figure - discussed that it was a way for management to see how much money the assets were generating. fingers crossed though.

Yo Redz Linear Programming was the best question probably risk and uncertainity and ABC will give some marks too(Even with the silly mistakes) Variances was just a misunderstanding by me and performance measurement was a disaster!!

Absorption & Abc Requirements Are CALCULATE FULL PRODUCTION COST PER UNIT

Yes Performance Measurement Was Such A Disaster :<