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Ratios

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Ratios

  • This topic has 2 replies, 2 voices, and was last updated 11 years ago by ajaved5.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • February 11, 2014 at 2:51 pm #158132
    ajaved5
    Participant
    • Topics: 10
    • Replies: 18
    • ☆

    Hi people,

    First of all I took a CBE test and got 42%. One of the questions was something like efficiency ration is 82% and Capacity ration is 82%. What is Production ration? Is it a case of just adding the 2 to give me Production ratio?

    Can any one point me to which are the main areas to revise?

    Thanks

    AJ

    February 11, 2014 at 3:28 pm #158146
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    The production ratio is the efficiency ratio x capacity ratio (not ration!).
    So using your figures it is 82% x 82% = 67.24%
    (see page 34 of the course notes).

    The exam is likely to test everything, but if you are retaking it after 26 February then there is a different format (if you go to the main ACCA page you will find a link to a note giving full details).
    In addition to the multiple choice questions, there will be 3 questions of 10 marks each – one will be on budgeting, one will be on standard costing/variance analysis, and one will be on performance measurement.
    The note on this website also gives a link to the specimen paper on the ACCA website.

    February 11, 2014 at 3:53 pm #158149
    ajaved5
    Participant
    • Topics: 10
    • Replies: 18
    • ☆

    Thanks for the answer John. I did notice that I spelt ration is the last sentence of the first paragraph so I edited it but didn’t realise about the others.

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