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Hi Everyone,
I am new to this account. I gave my exam on 10th June and here to discuss one concern with you all. In Section C, working capital calculation question, I happened to get a question on calculating the total cost of ordering inventory using EOQ and Bulk Purchase Discount. I did well on the bulk purchase part and made a mess on the EOQ calculation. I am getting EOQ of 6000 units after calculating in my calculator. But in spreadsheet, it’s showing a different answer. Is there any chance, I’ll be awarding the step marks or will I be penalised for that? Because of this, my other calculation part also different ( Ordering Cost and Holding Costs).
If the further calculation is right (despite the first wrong figure) they will give you marks. For example, they give 6 marks for this question. You have wrong answer for EOQ, but during calculation of holding cost and ordering cost you have used the formulae right, so you get marks for this two.
Hey LuxetVeritas
What was the answer where the question was limitations of business valuation?
Were all 3 options correct?i did not come across a question concerning business valuations
why do not we discuss FM Paper as you said?Guys how would you calculate sale price?
Year 1 the price is 14$ excluding inflation.
The inflation is: Year 2 – 5%, Year 3 – 4%, Year 4 – 0%.
I thin I made a mess here(.
What I’ve done was:
Price Year 1 – 14$
Year 2 – 14*(1,05)^2
Year 3 – 14*(1,04)^3
Year 4 – 14.@yanadubro
Same here. They did not give inflation for year 1. So, I started inflating from year 2. which means right from second year, we need to inflate like,
Year 2: 14*(1.05)^1
Year 3: 14*(1.04)^1Because, in one of the mock paper I remember the calculation for inflated selling price or cost in year 2 was solved in this way. In mock question paper, they gave only inflation information right from year 2 to above, which means, ignoring the year 1 and start inflating from year 2, we can get figures like, how you calculated. But here the inflation price is different for each year. So I calculated in the above way.
For Year 4, I did same like you since, 0 doesn’t have any value right.
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