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Hi, yes, the same here.. The transfer price question is quite different from the ones which I practised before..
Overall, I find it easier than the precious exams..Maybe there were elements of relevant costing in transfer price question? I certainly wrote it in my answer
Essem, I don’t think there was anything to do with relevant costing in the TP question. But I might be wrong…
Q1 – quite a few calculations but really straight forward. Price of X hasn’t changed much, only few pence, price of Y has decreased, therefore volume of the sales will increase as well as revenue (elastic demand), price of Z increased, however because the demand is inelastic, volume will not change much, and revenue will increase due to higher prices.Q2 – linear programming, optimal point on the line Build and Y<66000.
Found it difficult to identify slack, I was thinking only about direct labour, so said there was no slack. However now I think that the maximum demand for Y would be non critical constraint.Q3 – straightforward ratios. When analyzing the financial performance I have pointed at COS as an important element that should be looked into as the Gearbox division had a really high 60% cos compared to others of 30-5%
For the transfer price I took the cost of £7550 (if I remember correctly), 40% of it would be variable cost – minimum TP accepted, -5% the maximum price accepted. No idea whether that is any close to the truth.Q4 – I calculated all 6 profits separately (however I haven’t noticed anything about advertising costs saying it shouldn’t be included in any?) maximin rule, I have compared two of the worst profits and chose the higher one. In both the same option was selected.
Q5 – this one I found really difficult, didn’t really calculate the variance, didn’t explain the definitions…. I did make an attempt to analyze budgeted sales compared to actual and tried to link this to the scenario.
I really hope this will be enough!
Did exactly the Same on q4.
Why do you think, that advertisment shouldnt be included in the Profit calc?Guys i wasted a lot of my time on Q1 which i do believe will regret. But for the Q2 which was Linear programming was it a must to solve in Hours or Minutes as they did put in brackets? I want your assurances please!!
Linear Programming could have been done by either taking hours or minutes it doesnt really matter. Secondly How can expected value answer be 35. The question asked for each of the two pricing options workout the answers using EV or maybe i missed something 😛 The answers for the questions are released 15 days before the result so its a long wait and we would have forgotten everything by then 😛
I have been thinking I should not have included fixed costs except the dollar change in the ‘pay off table’ question 4 as they occur any way ? I thought I might have done enough to pass when came out of exam but now I am sure I will be retaking
@ jelly: in the Sales mix variance the contribution of the small Package was higher as of the Full pakage or Not? And wasnt actual Sales Portion of small higher than full (Economics Crisis, Chapter etc.).
Does someone remember the cs ratios?
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i have draw the graph with pencil rather than pen am i going to get marks for that?
Just saw some comments of not including advertising costs… but I havent noticed anything apart from two different costs depending on the price.
The paper was relatively easy to fully prepared candidates,cannot complain.Got most marks in question 2,4 &5.
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I have a question to the experts students of F5 this June Exam.
i got confused with the question related to calculating the ROCE, Asset Turnover and Operating Profit Margin of Co C and Co W Design Division and Gearbox Division
the question was that Co C and Co W companies belong to one company something called Renold or whatever.
now Co C sold some manufacturing items to Co W Gearbox division and in the Co C that amount was shown in the sales value, on the other side, in Co W Gearbox division the items purchased from Co C was shown in the Cost of sale.
i got confused in the part, on how to calculate the ROCE and Asset Turnover,Operating Profit Margin. becuase when i studied F3 i recall that inter-sale and inter-purchase between two companies belonging to the same owner are declined.
can anyone comment, how this question could have been answered. was the rationale on this question stating the purchase and sale between Co C and Co W companies.
i think i made mistake in this question.any comment and advise is greatly appreciated.
hi all, for those that sat this paper, am interested in knowing how accurate the tips were, please comment
The Tips were very very accurate! And June 2014 f5 questions are now posted (Without Answers) https://www.accaglobal.com/gb/en/student/acca-qual-student-journey/qual-resource/acca-qualification/f5/past-exam-papers.html
Hi,
Tanks Ahmed,
Can someone explain how to calc. the limiting factors simultaneous equation on Minute Basis? Iam always getting Otter values?Thanks
For part A) the Optimum Point was y=6600 and build stage in minuted the equation would be 24x+20y=1800000 Minutes.(build stage)
To solve this for maximum Contribution
Sub in y=66000 into equation for build stage
so you would end up with 24x+20(66000)=1800000
24x+1320000=1800000
24x=480000
x-480000/24
x=20000Contribution function= 30x+40y
units of x which can be produced at the optimum point =20000
for y=66000
therefore 30(20000)+40(66000)=3240000
less fixed cost per month x 3 as profit for quarter =650000 x 3=(1950000)
Profit therefore equals =3240000-1950000=1290000(for the quarter)Hope this helps you.
Lol i got the same as you on the basis that
you done the c/s ratio given as a percentage and multiplied it by the selling price for each of the vallet thingy’s:P@ feroz: Tranks !
Could You please explain whey optimal Point was 66000?
I calc. Booth points with the constraints formula…
For mix i think both full and mini were 1130 A & F respectively. (1130) x (50 x .446) + 1130 x (30 x .55) for total variance. That’s what I had in the exam I believe.
omfg just saw the note under the table about the % contribution per sales
hate this examiner
although to be fair should have spent maximum of 7 minutes on question 4
Think quantity variance was 1530 F for full and 850 F for Mini times (C/S x sales prices) Again that’s just what I did in the exam but fingers crossed that’s right as it will hopefully make up for the incredibly daft mistake I made in linear programming of ignoring the maximum demand line for y and working out a simultaneous equation instead. Thin Q’s 1 and 4 I should score highly on as well.
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