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- This topic has 7 replies, 4 voices, and was last updated 4 years ago by John Moffat.
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- September 22, 2020 at 7:34 pm #586420
The finance director of Paint Mixers Ltd has produced the table below showing the variance
results for the first three months of the year:
January February March
Material price variance $3,000 A $2,000 A $1,000 A
Material mix variance $2,000 A $750 A $100 F
Material yield variance $4,000 A $2,000 A $50F
Which of the following interpretations of the variances analysis exercise above is NOT
correct?
A The purchasing manager should be able to threaten to switch suppliers to get better
deals and address the adverse material price variance
B The materials mix variance is entirely under the control of the production manager
C The favourable yield variance in March could be the result of operational efficiency
D The responsibility for the initial poor performance must be borne by both the
purchasing manager and the production managerThe answer is D.. The production manager controls both the mix and the production process and must
alone bear responsibility for this initial poor performance.But the above question has material price variance also which is adverse.. isn’t it the responsibility of the purchasing manager also? so does the purchasing manager not responsible for the poor performance?? Why only production manager?
September 23, 2020 at 8:42 am #586445Assuming that you have typed out the whole question correctly, then I agree with you that the purchasing manager also bears responsibility 🙂
If this is a question from the current edition of the BPP Revision Kit, then tell me the number of the question so that I can check the wording myself.
October 17, 2020 at 11:53 am #589505sir, it is from the kaplan revision kit … the question no. is 153 page 52. I have the same problem.
October 17, 2020 at 2:11 pm #589536I do not have the Kaplan Kit and cannot add anything to my previous answer 🙂
October 22, 2020 at 6:54 pm #591134ACCA PAST EXAM
MARCH/JULY 2020How was AQBM calculated ?
RLE. ICL. Total
AQAM 4,130 960. 5,090
AQBM 3,764.79. 1,325.21 5,090???
BQBM 3,750. 1,320. 5,070October 23, 2020 at 8:14 am #5929045,090 is the actual total number of treatments.
The actual quantity at budgeted mix is for RLE: (3,750/5,070) x 5,090 = 3,764.79 and for ICL is:
(1,320/5,070) x 5,090 = 1,325.21Have you watched my free lectures on mix and yield variances? The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
October 23, 2020 at 9:27 pm #592988Thanks a bunch 🙂 I just started watching your videos
October 24, 2020 at 10:50 am #593008You are welcome 🙂
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