*** F5 June 2015 Exam was.. Instant Poll and comments ***

The Question of Pricing I did not do part and transfer pricing i ran out of time…..All the others were ok….I pray to God i pass this EXAM….Thank John you helped me through this paper I will keep you posted on my results.

For multiple choice wow I went blank on RI and ROI like could not remember anything I had a senior moment…………lol

Hi, should the ROI be calculated using the gross profit or the operating net profit times the asset turnover? That’s one of the mcqs

Vc*

It was a easy question but i did’t answer well 🙁
The 2nd and the 1st question was little tricky. This two killed my valuable time. Don’t know what gonna happen. My pass depends on MCQ. 🙁 🙁 🙁

Hi Gladys, we were given both gross profit margin and operating net profit margin so was not 100% sure but having googled it just now the ROI should be calculated using the operating net profit margin times the asset turnover. Agree?

Hi, question said company policy may change so to max profit as a whole the variable cost should only be the price charged to division S and 500 bought from the external supplier, correct?

Truly, the exam was fair….all areas were covered except financial/non financial performance management… I our invigilator upset us and I dont know how to complain this to ACCA Admin…..I told us to start after 30minute gone….and We asked him to allow for extension but refused…it became take it or leave it!!!!!!!!!!!

My expectation is high…I have done, all parts except Question three on variance analysis which I did partly….. The ABC question was big but okey…i concluded that ABC is the best approach for the Company,,,,,

q2, pricing was okey….got variable 3/unit and 800K Fixed cost….optimum price calculated was $156.5 AND quantity demanded was 153500 units…then used all this to find total profit=$ 22,762250. part C of q2….Market skimming…after much detail concluded that its okey tO adopt because the product was new and innovative and company can charge high prices and carry out strong market campaign to boost the sales and convince customers that product is worthwhile though the demand was 2/2000 elastic…..

question 5– ZBB was okey…and mostly got the idea of telling benefits and limitations of ZBB linking it to the sceneria.

Transfer pricing was tricky…..after explaining the approach of transfer pricing I said that division M should supply 30000 units to Division S because division M had only 30000 for external and external is more beneficial for her, therefore sell 30000unts to external, 30000units to Division S and then S can get the 5000 units remaining from external…. the price that should be set between divisions should be the marginal cost of division M less internal selling cost which was $740(770-30) and market price of $800 that S can get else where…..

Question 4- labour variance—- efficiency planning variance— Original (460*7*12)-revised(2.756H*460units *12)=$23426.88F and labour operational variance= revised(2.756H *$12*460-1860H*$12)=$7107A…… the part b did not worked, because of time……

Yes brain you are right…each division would want to maximize profit so Division M will sell 30000 to external and 30000 to S, so that S can get the remaining 5000 from else where….I tried to calculate the effect on this to the group but could not because Divison S selling price was not told and hence though the question should be discesive rather numeric….. and the ltranfer price should be set should be between $740 to $800

Exactly same for me.

for me at Q1(ABC) one of procedure’s ABC cost is higher then the original, and the other’s is lower than the original cost.

I totally messed up my ABC question by changing it…..But for my answer which i was confident with but crossed outtttt….*screams*,my ABC results for both companies were lower than original…so i stated the company should go with ABC.