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On ABC in section B the last question asked how change from absorption costing to ABC will increase or decrease cost per unit for either procedure A or B and the solution obvious is the precedure with more units of cost drivers will have more cost per unit.
Was is procedure A or B with more units in all cost drivers or more patients?
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agboolakenny84 wrote:The Transfer pricing question was so confusing. I chose a decrease of 50000 because there was no direct attributable fixed costs from not selling to the other division. I’ve forgotten the names of the divisions. Same here, I had to read the ABC question numerous times. It looked easy but mehn there were big distractors.
I chose 65 000.
What did you choose on ways to reduce target cost gap in section A
citylane2013 wrote:On ABC in section B the last question asked how change from absorption costing to ABC will increase or decrease cost per unit for either procedure A or B and the solution obvious is the precedure with more units of cost drivers will have more cost per unit.
It was A as i remember that A will be allocated with more costs compared to B
dont we take the actual sales and the budgeted sales and then whatever the answer is multiplied with the standard contribution?
i arrived at 1200000 (adverse or favourable not sure ) for sales mix variance and for sales quantity i got 40000 adverse
could anyone confirm the sameyes i got the same answer too and for the target cost gap i chose increasing the staff training
I got the same. but i quest it should be fair, i have perform practice questions on them with past papers. all fingers cross best of luck to all of us.
Did anyone get life cycle costing question? if yes did you arrive at 7290000 as your answer
also did anyone get a question on required sales with a target profit of 130000?- Topics: 2
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nmenon3 wrote:yes i got the same answer too and for the target cost gap i chose increasing the staff training
What about buying more efficient machinery as a way of reducing target cost gap. Didn’t you see it?
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nmenon3 wrote:Did anyone get life cycle costing question? if yes did you arrive at 7290000 as your answer
also did anyone get a question on required sales with a target profit of 130000?Yes. Saw both of these.
Yes I did… But in that the answer was stated as “will not reduce target cost gap” where as buying machinery reduces the target cost gap
Do you remember what you got the answer for the required sales!?
And also did you receive the same answer for the life cycle costing!?Did anyone get the question about high low method and also not for profit organisations, if so what is the answer that you got?
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nmenon3 wrote:Yes I did… But in that the answer was stated as “will not reduce target cost gap” where as buying machinery reduces the target cost gap
On target cost gap can you narrate what the question asked for? Did the question say what will reduce target cost gap or what will not reduce target cost gap?
Myself I dont remember now.
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nmenon3 wrote:Did anyone get the question about high low method and also not for profit organisations, if so what is the answer that you got?
I dont remember the answers that I chose for not for profit and high low method, but I did see the questions. What answers did you choose maybe I can remember.
which of the following reduces target cost gap the options were
1) investment in training staff
2) investment in new technology will not reduce target cost
3) increase in the profitability will reduce the target cost
and fourth i dont rememberfor not for profit they asked to choose two
i chose it is difficult to arrive at performance decisions ( the wordings im not sure) and the second one was not all stake holders views can be prioritised
and for high low method i chose not reliable since they dont account for all the values and the second one was something about not producing value outside the range …again not sure about the wordings- Topics: 2
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nmenon3 wrote:which of the following reduces target cost gap the options were
1) investment in training staff<br>2) investment in new technology will not reduce target cost<br>3) increase in the profitability will reduce the target cost<br>and fourth i dont rememberMy question was not like that. So we wrote different questions on this one.
My options where
1. Increase staff training
2. Purchase more efficient machineryI forgot the other 2 options
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nmenon3 wrote:which of the following reduces target cost gap the options were
1) investment in training staff<br>2) investment in new technology will not reduce target cost<br>3) increase in the profitability will reduce the target cost<br>and fourth i dont remembernmenon3 wrote:for not for profit they asked to choose two
i chose it is difficult to arrive at performance decisions ( the wordings im not sure) and the second one was not all stake holders views can be prioritised<br>and for high low method i chose not reliable since they dont account for all the values and the second one was something about not producing value outside the range …again not sure about the wordingsI remember now. I selected the same answers. On lifecycles costing I got the same.
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nmenon3 wrote:for not for profit they asked to choose two
i chose it is difficult to arrive at performance decisions ( the wordings im not sure) and the second one was not all stake holders views can be prioritised<br>and for high low method i chose not reliable since they dont account for all the values and the second one was something about not producing value outside the range …again not sure about the wordingsIf you dont mind you can contact me on my email (hillaryjohns85@gmail.com) then we exchange contacts and discuss further. Here on this platform everyone is now silent and we are the only two now chatting.
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nmenon3 wrote:Did you have to choose two options for the target costing?
No. In my case I had to choose one option.
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