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Dear Sir,
Q.1: Could you please explain in plain English “the key characteristics of services” with example
e.g
*Intangibility
*Inseparability/simultaneity
*Variability/heterogeneity
*Perishability
*No transfer of ownershipQ.2: In ACCA F5 flashcards, set 1″List four methods that may be used to account for environmental costs.” the first answer is written Inout analysis
1 Inout / output analysis
2 Flow cost accounting
3 Life cycle costing
4 Activity based costingWon’t it be Input analysis?
Q.3: In ACCA F5 flashcards, set 1″What is meant by the term ‘bottleneck’ in the context of throughput accounting?” the answer is written
“The bottleneck is the operation that is limited the rate of production”Won’t it be …..limited to/by the rate of production.
Q.4: In ACCA F5 flashcards, set 1″What is meant by the term ‘cost driver’ in the context of activity based costing?” the answer is written
“The cost driver is the unit of an activity that causes the activity cost to change”My opinion is will that be …. cost to charge instead of cost to change. If “cost to change” statement is correct then please clear me with an example how?
Please let me know as soon as possible since I am stuck with study.
Q1: You need to watch the free lecture – I cannot type it out here 🙂
Q2: I am not sure what you mean – the first one should be “input/output analysis”. (They are all explained in the free lecture notes)
Q3: It should read “…..is limiting the rate of production”. Again the free lecture on throughput accounting will help you.
Q4: Causes cost to change is correct. For example, if the cost driver is the number of set-ups, then the more set-ups there are then the more the cost will be. The free lecture on ABC will help you.
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