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P5 Mock paper answer

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › P5 Mock paper answer

  • This topic has 2 replies, 3 voices, and was last updated 14 years ago by Anonymous.
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  • May 29, 2011 at 10:12 am #48734
    sharkulon
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    In the mock paper made available on ACCA global website(https://www2.accaglobal.com/pubs/students/acca/exams/p5/past_papers/p5_2006_dec_ppq.pdf) upon question no 3 Creative division we have the following answer for part b(1)
    “A fall of 12% from the current level would result in a unit cost of £41.21 x 88% = £36.26. However, the combined probability of this cost level being achieved is only 18% (this can be abstracted from the probability matrix). This might,
    therefore, be seen as a ‘risk seeking’ stance if management decide to proceed with the re-design”
    Can someone please guide me how this 18% came about?
    I will be most grateful

    June 4, 2011 at 5:44 pm #82619
    shazran
    Member
    • Topics: 2
    • Replies: 4
    • ☆

    36.26 is below 35 & .5 cuts from de matrix
    i.e .04+.04+.02+.03+.03+.01+.01=.18 = 18%

    June 6, 2011 at 2:31 am #82620
    Anonymous
    Inactive
    • Topics: 2
    • Replies: 9
    • ☆

    Could you please share me with Mock P5 June,2011 at 596872744@qq.com?

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