• 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

20% off ACCA & CIMA Books

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

ROCe

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › ROCe

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 3, 2021 at 2:36 pm #639847
    Anonymous
    Inactive
    • Topics: 44
    • Replies: 26
    • ☆☆

    I do have a problem that how the ROCE in both division is same?

    Question#1

    Division X:
    Revenue = 50,000
    Operating costs = 20500
    Fixed cost = 11000
    Profit = 18,500
    Capital employed = 150,000

    Division Y:
    Revenue = 40,000
    Operating costs = 18000
    Fixed cost = 12000
    Profit = 10,000
    Capital employed = 100,000

    Half of the Fixed costs for each division are allocated to head office expenses.

    November 3, 2021 at 3:33 pm #639861
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    Given that half of the fixed costs are head office expenses, they are not controllable by the divisions.

    Therefore the controllable profit in division X is 18,500 + 5,500 = 24,000, and the ROCE is therefore 24,000/150,000 = 16%.

    For division Y, the controllable profit is 10,000 + 6,000 = 16,000, and the ROCE is 16,000/100,000 = 16%.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

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

  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)
  • Hsaini on Accounting for Management – ACCA Management Accounting (MA)
  • kennedyavege@2023 on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)

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