*** F9 December 2013 Exam was.. Post your comments ***

@muneebbabar No, you have to include it. The holding cost is always paid on the buffer stock plus half the quantity of the inventory ordered.
But don’t worry, it is not like it is the end of the world. I am sure you will not lose a lot of marks, it is considered only one error and you will get credit for the rest.

Maha

@muneebbabar – I am very surprised that you read an article that says we should ignore the buffer. As per what I learned, the buffer inventory is always included in the holding cost and it does make sense because surely you will be paying money to hold this buffer inventory.

Anyways, regardless of what is really correct, I wouldn’t worry much about it, it is only one error, it will not mess up your whole answer.

Maha

I don’t know exactly what would happen if you give two different answers to the same question. But it seems unlikely to me that they’d ignore the wrong one and give you marks for the correct one. If that were the case, if I wasn’t sure of the answer, I could give a whole range of answers, in the hope that one of them would be correct! My guess is that if you gave more than one answer, unless you crossed one of them out, then they’d both be ignored. However, if either contained correct workings, then I’m sure you’d be awarded marks for that.

However, that’ just my guess, I don’t have any idea.

@clevergirl well i guess ill be seeing you around in the Ask F8 ACCA Tutor forum then next semester 🙂

my F* lecturer was one of the markers for ACCA, she always told us then don’t waste time giving 2 answers for the same question, for example, while calculating after-tax WACC, but you calculated the before-tax WACC and you just realized that you’re doing it wrong, and you make another calculation for the after-tax WACC, and did not cancel the wrong answer, the marker will just simply(did not mark the part) or give you mark based on which on you wrote first (like a FIFO basis ahaha), first in first marked.

Thanks!

@muneebbabar no no you cant ignore buffer !!!!! is part of the formula

hOW COULD YOU DISCOUNT THE LEASING WITH THE LOAN DISCOUNT FACTOR WHEN THE QUESTION CLEARLY STATED THAT THE LOAN WAS ONLY USED FOR PURCHASING PURPOSES..THE LEASE SHOULD HAVE BEEN THE LEASE AMOUNT FOR THE NUMBER OF YEARS..I THINK IT WAS 5 YEARS THEN PURCHASING AT THE LOAN DISCOUNT FACTOR.YAH I ALSO HAD A TOUGH TIME CALCULATING THE BUFFER STOCK,WASTED ALOT OF TIME THERE

I said the same as you Christina85 regarding interest rates on longer term loans. I said debt holders expect to receive higher interest on longer term loans, because of the inconvenience of being without their money for a longer time, and also to compensate for the extra risk. In my opinion you gave the correct answer.

@neilsolaris – i hope sooo my friend did the same but i read in my tution notebook the other way around…..so i am not sure , i hope is correct and gain that 5 marks …..

@generations – i hope we all pass no matter how many silly mistakes we did is awfull to re take any paper ….i am not sure though – ignore me ….

best of luck to all !

Yah about the interest rates i too wrote about “Risk” “security” and other things i don’t remember..on WACC/capital structure i wrote about Modigliani & Miller theory,traditional theory and threw in abit about pecking theory…under working capital talked about the objectives of working theory(liquidity and profitability) then conservative,moderate and aggressive methods for both working capital investment and financing(the marker can pick some sense out of all that LOL) then under the question in the lines of (what a company should do to encourage directors work hard towards the company’s long term objectives) i think question 1.C..i talked about how the company can solve “Agency problem” where directors are offered shares,bonuses and Executive share option schemes…Then under Riba(i only read about it ounce ages ago and managed to remember abit about it..in that muslim law does not allow it for the 3 disadvantages it has towards the borrower,the lender and to the economy..managed to scribble something on advantages of leasing as long term and short term finance…I REALLY HOPE THEORY SAVES ME…

Time management issue with me .

i did the saem as bonerura