• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Performance analysis – Kaplan revision kit page 73 – question 204

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Performance analysis – Kaplan revision kit page 73 – question 204

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 29, 2022 at 1:02 pm #656780
    Jshaq93
    Participant
    • Topics: 2
    • Replies: 11
    • ☆

    Hi John,

    The finance director of Paint Mixers Ltd has produced the table below showing the variance results for the first three months of the year:

    Materials price Variance

    Jan – £3K adv
    Feb – £2k adv
    March – £1k adv

    Material mix variance

    Jan – £2k adv
    Feb – £2k adv
    March – £100 Fav

    Material yield variance

    Jan – £4k adv
    Feb – £2k adv
    March – £50 Fav

    Which of the following interpretations of the variance analysis exercise above is NOT correct?

    A – The purchasing manager should be able to threaten to switch suppliers to a get a better deal and address the adverse mat price variance.
    B – The materials mix variance is entirely under the control of the production manager.
    C – The fav yield variance in March could be the result of operational efficiency.
    D – The responsibility for the initial poor performance must be borne by both the the purchasing manager and the production manager.

    The correct answer is D, as apparently the production manager controls the mix and production process so must be the one to take sole responsibility. However, I do not understand why the purchasing manager doesn’t bear any responsibility for the 3 adverse price variances. Is he/she not responsible for spending too much on the required materials?

    Many thanks in advance.

    May 29, 2022 at 3:32 pm #656799
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54680
    • ☆☆☆☆☆

    I do not have the Kaplan Kit (only the BPP Kit), but I do not think that this is a past exam question.

    Unless there is more information given in the question than you have typed (especially if this is a Section B type question and there is more information in the stem at the beginning), you are correct and the purchasing manager should also bear some responsibility.

    May 29, 2022 at 4:43 pm #656807
    Jshaq93
    Participant
    • Topics: 2
    • Replies: 11
    • ☆

    Many thanks John. I was scratching my head for a while with this one. It’s actually a section A OTQ in Kaplan’s kit so no further info is given.

    I will assume it’s a typo/mistake on their end.

    May 30, 2022 at 8:31 am #656824
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54680
    • ☆☆☆☆☆

    It seems so 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Performance analysis – Kaplan revision kit page 73 – question 204’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • poojam on Objective of financial reporting – ACCA Financial Reporting (FR)
  • mm3677 on IAS 16 Accounting for a revaluation – CIMA F1 Financial Reporting
  • Anastesia123 on MA Chapter 1 Questions Accounting for Management
  • John Moffat on MA Chapter 26 Questions Variance Analysis
  • acowtant on Changes in group structure – examples – ACCA SBR lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in