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TAW question – June 08

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › TAW question – June 08

  • This topic has 2 replies, 2 voices, and was last updated 7 years ago by Edward.
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  • Author
    Posts
  • November 14, 2015 at 3:53 pm #282354
    Edward
    Member
    • Topics: 21
    • Replies: 17
    • ☆

    Hi,

    For part A of this question I classified production testing under prevention costs rather than appraisal costs and classified transportation costs under internal failures rather than external failure costs. As a result my total costs is different to the solution. Would I lose marks for this in the exam as its unclear from the solution whether there is scope for this to be different?

    Thanks,

    Ed

    November 14, 2015 at 6:17 pm #282401
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10194
    • ☆☆☆☆☆

    I think that their ‘product testing’ could be calssified as prevention. It depends what they mean. As part of marketing research, product testing is used before production to ensure that the product is liked by customers and that it works well. So if that’s what they mean, the that would be prevention.

    However, I find it hard to see how transportation could be anything but an external failure as the assumption would be that units failing internally did ot have to be transferred anywhere.

    At most you would lose a couple of marks.

    December 2, 2015 at 8:47 pm #287079
    Edward
    Member
    • Topics: 21
    • Replies: 17
    • ☆

    Thanks for that.

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