- This topic has 3 replies, 2 voices, and was last updated 2 years ago by
.
- Posts
Sir, why was there a lock on my previous topic tile? Is that represent the topic is closed?
Sorry for my typo, it should be Question 100 not 101, breakeven point is where the total contribution is equal to the total fixed overheads; i.e. $20k ($40 x 500) and selling price $60; what does it mean profit mark-up would need to add to the marginal cost (sales-variable cost) to break even?
Question 134, why need to consider the opportunity cost of skilled labour of $8,000 as the contract only requires 800 hrs of skilled labour paid at $9.5 per hour, and the question has not mentioned the skilled labour for manufacturing product P shift to work for the new contract. Also I am not understand the calculation of such opportunity cost of $8,000.
Regarding the risk and uncertainty, I always mix up the horizontal line and vertical line of the table to find out maximin/maximax and minimax regret. Is that we need to define the demand (uncertantity) or choices first?
Question 142-144, $425, $500 and $600 are our choices whereas 1000, 730 and 420 are the expected demand, so we need to compare vertically to find out the maximin/maximax. But for finding the minimax regret, why we look horizontally? Can give some hints.
Examples in the PM lecture notes are easy to understand the concept behind but it is quite difficult for the revision kit. 🙂
Thank you very much for your time and kind assistance.
When I have answered a question I leave the topic open until there is a reply. If the reply asks more then I reply to that also. You just thanked me for my reply and when someone thanks me I assume they are happy with the reply and then the post is always closed. (Otherwise other students start adding different things later which gets ridiculous – it is better that they ask whatever questions they have separately 🙂 )
We do not provide free private tuition and so we cannot answer multiple questions in one post because many students use the search box to see if their specific problem has already been answered.
For the same reason I must ask that in future you ask about different questions as separate posts – not all in one post.
You write that you have worked the examples in the lecture notes, but have you also watched the free lectures working through each of the chapters? There is no point at all in using the notes without watching the lectures because the notes are not a Study Text and it is in the lectures that I explain and expand on the notes.
Q100. The profit mark-up is (as in Paper FA earlier) the % of the cost that has to be added to the cost as profit in order to arrive at the selling price. (The question does actually define it for you by asking what needs to be added to the marginal cost and requires it as a %)
Q134. The question says that all available skilled labour is employed making P. Therefore to make the contract they will have to take labour that is currently making P and will therefore use production of P’s. As a result, for every until of P not made they will lose the revenue of $100 but will save the other variable cost of $22 (they will still be paying the labour), so they will lose a net $78. Each unit of P takes 4 hours and therefore every hour they take is losing them $19.50, so this is the relevant cost per hour.
Risk and uncertainty: It does not matter whether which way round you show the rows and columns. All that matters is understanding what you are doing, and why. I cannot really add anything to what I explain the lectures where I do explain the logic of each of the different decision making approaches.
I am a part-time learner and need to work in the daytime and take care of my family. I have watched all the free lectures after work every day and during the weekend. Maybe sometimes, I have been distracted and lost my memory in some important areas.
I will post the question under a specific subject/topic and not be posted by multiple.
Sorry for my trouble, and really hope I can pass the coming exam.
Thank you
- The topic ‘Queries on ACCA Practice and Revision Kit-Part II’ is closed to new replies.