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Future projected losses

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Future projected losses

  • This topic has 4 replies, 2 voices, and was last updated 11 months ago by alawi sayed.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • July 24, 2024 at 12:05 pm #708815
    alawi sayed
    Participant
    • Topics: 301
    • Replies: 352
    • ☆☆☆☆

    Hello Tutor,

    In the last exam there were one point which I was not sure about relating the controllable profit before calculating the ROI,

    The point was telling about the allocation of the future projected losses (some thing like that )
    these losses ware allocated fully to one division and not to the other

    So what I did I allocated it properly based on some criteria which was giving in the exam

    But unfortunately showed clearly but was not added to the total figure because I had to update the total again .

    So if the the total controllable profit was missing this figure and the ROI became a little bit different
    will I lose all the marks
    and all the explanation giving based on it as well as the calculation of the bonus to the divisional manager which is based on the ROI

    ROI was a part of the question which in total worth 20 marks

    the other part was for calculation of ratios and analysing the performance of both division

    which I have done completely

    So my main mistake was the allocated projected losses which was not affected in the profit figure

    will that cause the performance to be 28% for the whole question of 20 marks

    It means I got only 5.5 marks for the two parts

    The question said clearly that there are six maximum marks for the calculation of ratios

    Which I have done. All my explanation was relating to the scenario ,

    Is it worth for me to claim Administrative review specially for this question.

    Thanks,

    July 24, 2024 at 10:40 pm #708832
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1515
    • ☆☆☆☆☆

    In simple terms.. I would not recommend a review.

    July 25, 2024 at 4:08 pm #708846
    alawi sayed
    Participant
    • Topics: 301
    • Replies: 352
    • ☆☆☆☆

    Hi,

    Regarding the future projected allocated losses to one of the divisions only, are they considered controllable or uncontrollable?

    because this bit was confusing.

    Thanks,

    July 25, 2024 at 11:14 pm #708850
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1515
    • ☆☆☆☆☆

    Future projected allocated losses to one of the divisions only are considered uncontrollable.

    This is because these losses are not under the direct control of the divisional manager.

    When assessing the performance of a manager, only costs and revenues that the manager can control should be considered. Therefore, these allocated losses should be excluded from the controllable profit calculation.

    July 26, 2024 at 11:52 am #708862
    alawi sayed
    Participant
    • Topics: 301
    • Replies: 352
    • ☆☆☆☆

    Thanks a lot.

  • Author
    Posts
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