- This topic has 3 replies, 2 voices, and was last updated 11 years ago by
.
- Posts
In the June 2013, June 2010 and Dec 2012 exams there is this very popular question asked, phrased as “Identify and discuss the factors to be considered in formulating a trade receivables management policy for ZSE (or whichever) Co”
And then in the Dec 2010 sitting there was a question phrased as “d) Discuss the factors that should be considered in formulating working capital policy on the management of trade receivables. (8 marks)”
Aren’t the above two questions the same? I thought they are but the examiner doesn’t think so. He says the later question deals with the framework to be set up within which the former question will be considered. I don’t get the difference between the two. Looking at the F9 marking schemes, it is clear the two questions have different answers so the two questions are different but why are they different? What’s the logic and rationale behind them. Please explain.
Thanks.
They are effectively both the same. The answers are more suggestions and points from all of them would get marks.
I thought the same but reading the examiner’s reports (from Dec 2010) as reproduced below says this
“Part (d) required candidates to discuss the factors that should be consideredin formulating working capital policy
on the management of trade receivables. Poorer answers offered a list of actions that could be met in trade receivables management, such as “send out
letters to trade receivables”, “call customers on the telephone”, “produce an aged receivables analysis regularly”. Working capital policy on trade receivables management should consider what period of credit to offer, how to
determine the amount of credit offered, when creditworthiness needs to be assessed and to what extent, and so on, and it is often informed by the trade receivables management policies of competitors. The policy should provide the framework within which the actions referred to above would be undertaken. ” ( I think this last sentence is the differentiation explanation). “The policy he says”So it appears that writing the same answers for both such as (sending out reminder letters and producing aged receivables analysis) is being, in the examiner’s eyes, problematic. Also, he didn’t write the same usual answers as he always writes for this question so I understood, from your above comment, that maybe he wanted to give extra ideas but could you please explain the effect of the above examiner’s comments.
Thanks.
- You must be logged in to reply to this topic.