Attribution Non-Commercial (BY-NC)

12 views

Attribution Non-Commercial (BY-NC)

- S1 Papers to Jan 13
- Accountancy-I subjective .pdf
- Marginal & Absorption Costing
- CostCH1-5-62-102-21-41-1
- 35. Applied-The Readiness of Prospective Physical Education Teachers-gunathevan Elumalai
- Mid Term Mgt402 Vu-new
- Var - Monte Carlo Simulation
- MA_MID_1_W10_EC_KEY
- 35939311 Midterm Version 1
- Pre Class Review Power Point Cost Concepts Chap 1
- Prisoners Light Bulb
- AMegaFileofMGT402 Solved MCQS Solved Papers
- COST AND MANAGEMENT NOTES
- Cost & Mgmt Accounting
- SMch05Beams
- Cash Costs
- BackFlush Costing2
- Kunci Tutorial Uasnew
- ed105 a-ppt
- Cost Accounting (13)

You are on page 1of 2

F2 Management Accounting

December 2007

The following questions are ones where less than 30% of the candidates selected the correct answer. These

questions carried 2 marks each.

Example 1

A company uses standard marginal costing. Last month the standard contribution on actual sales was $10,000

and the following variances arose:

$

Total variable costs variance 2,000 Adverse

Sales price variance 500 Favourable

Sales volume contribution variance 1,000 Adverse

A $7,000

B $7,500

C $8,000

D $8,500

The correct answer was D ($8,500). The most popular choice made by candidates was B. More than twice as

many candidates chose B than chose D. Those choosing B had overlooked the fact that the ‘standard

contribution on actual sales’ (given in the question) would have been obtained by adjusting the budgeted

contribution by the sales volume contribution variance. Therefore this variance should have been ignored in

answering the specific question set. The correct answer is obtained as follows:

$

Standard contribution on actual sales 10,000

Add Favourable sales price variance 500

Subtract Adverse total variable costs variance (2,000)

Actual contribution $ 8,500

This question tested Section E5(b) in the Study Guide – the reconciliation of budgeted and actual contributions

under standard marginal costing.

Example 2

The probability of an organisation making a profit of $180,000 next month is half the probability of it making a

profit of $75,000.

A $110 ,000

B $127,500

C $145,000

D $165,000

This short calculation question caused many candidates a lot of problems. Both choices B and D were very

popular – many more candidates chose either B or D than chose the correct answer A ($110,000).

The correct calculation is:

[(180,000 × 1) + (75,000 × 2)] ÷ [1 + 2] = $110,000

[(180,000 × 2) + (75,000 × 2)] ÷ [2 + 2] = $127,500

This approach has weighted the two profits equally and not in the ratio described in the question.

[(180,000 ÷ 2) + 75,000] = $165,000

This approach indicates a poor understanding of what an expected value is, namely a weighted average.

This question tested Section C1(a) in the Study Guide – the calculation of an expected value.

Example 3

Two products (W and X) are created from a joint process. Both products can be sold immediately after split-off.

There are no opening inventories or work in progress. The following information is available for last period:

units units per unit

W 12,000 10,000 $10

X 10,000 8,000 $12

Using the sales value method of apportioning joint production costs, what was the value of the closing

inventory of product X for last period?

A $68,992

B $70,560

C $76,032

D $77,616

The correct answer was D ($77,616). Both answers B and C were more popular choices by candidates and A

was selected by more than 12 % of the candidates.

Product W : (12,000 × 10) = $120,000

Product X : (10,000 × 12) = $120,000

Amount apportioned to product X is (776,160 ÷ 2) = $388,080.

20% of X’s production is in closing inventory: (0.2 × 388,080) = $77,616.

Answer B has split the joint production costs on the basis of sales prices and Answer C has used the sales value

of sales to apportion joint production costs.

This question tested Section D6(k) in the Study Guide – the valuation of joint products .

- S1 Papers to Jan 13Uploaded byraydenmusic
- Accountancy-I subjective .pdfUploaded byM Umar Mughal
- Marginal & Absorption CostingUploaded byChethaka Lankara Silva
- CostCH1-5-62-102-21-41-1Uploaded byMichael Lance Morales
- 35. Applied-The Readiness of Prospective Physical Education Teachers-gunathevan ElumalaiUploaded byImpact Journals
- Mid Term Mgt402 Vu-newUploaded byjamilbookcenter
- Var - Monte Carlo SimulationUploaded byKomang62
- MA_MID_1_W10_EC_KEYUploaded byEric Agudelo
- 35939311 Midterm Version 1Uploaded byfaensa
- Pre Class Review Power Point Cost Concepts Chap 1Uploaded byMichelle Lam
- Prisoners Light BulbUploaded byoxhuangfei
- AMegaFileofMGT402 Solved MCQS Solved PapersUploaded byZeeshan Ahmed
- COST AND MANAGEMENT NOTESUploaded byRamchandra Murthy
- Cost & Mgmt AccountingUploaded byTalha Idrees
- SMch05BeamsUploaded byAtika Darety
- Cash CostsUploaded byRogelio Curo
- BackFlush Costing2Uploaded byVenn Bacus Rabadon
- Kunci Tutorial UasnewUploaded bymuhammadmakhrojal
- ed105 a-pptUploaded byapi-268563289
- Cost Accounting (13)Uploaded byNitin Rajotia
- 1FEASIB. - Chapter I- VI (FINAL).docxUploaded byDavid Jhan Calderon
- Solutions to Assignment Chapter 6Uploaded byMohamed Refaei
- Copy of CU Offseason 4day Per Week LiftUploaded byZachLoving
- Lec 3 Konsep Dan Klasifikasi BiayaUploaded byMaulana Hasan
- stats notes review6-9 fill inUploaded byapi-311540719
- q07.pdfUploaded byZeneth Griffith
- California Creamery Inc_Sesi 4Uploaded byTrie Lovelyz
- 5 Steps to Understanding Product Costing- Part 2 Activity Rate CalculationUploaded bySantosh Rothe
- MAS 1 Activity Based CostingUploaded byRoselle Cabañero
- b.com_-_ii_-_2012r.pdfUploaded byAdnan Kazmi

- Using SystemUploaded byDiegoMendivil
- Uribe Notes Civil Review 2Uploaded byGrace Riguer
- generalpharmacologyandpharmocokinetics-161113065319.pdfUploaded byBheru Lal
- SARA Anyconnect TroubleshootingUploaded bymozollis22
- Guideline-huawei 3g Dbs3900 (Rru) Deployment ScenarioUploaded byAkhmad Faruq Bayasut
- FREE Kaspersky Antivirus 2012 Offline Database Updater Download _ TechnoJourneyUploaded byninara_wadhwa
- ots1Uploaded byDeepak Kaushal
- I, Who Shall Not Be NamedUploaded byTheLight WorkersMedia
- manual infinityUploaded byAlfonso Sanchez Verduzco
- SimMechanics Getting Started 2014bUploaded byengrasheed
- 3FM AnswerUploaded byRenz
- ch11Uploaded bySyedAshirBukhari
- Sap PresentationUploaded byPreeti Sharma
- EN 15242Uploaded byDragan Veselica
- Market Segmentation is the Process of Dividing Consumers Into Different Categories Based on Distinguishing CharacteristicsUploaded byabdul_wahab_2
- 1763-5890-1-PB.pdfUploaded byputra
- ProposalUploaded bySayeed Ahmed
- BKKY_010813EUploaded bydileepkr97
- B-737-NG-WALKAROUND.pdfUploaded byadonisshamleh
- Friction Loss TablesUploaded byHyder Ali
- Hybrid Maintenance ACIAA 10-9-09Uploaded bymmcsw75
- f3 Ffa ExamreportUploaded byAina
- HPZBook15G4ServiceManual.pdfUploaded byjohn_jebiteselopovi
- Art and design of PhotographyUploaded byVishwanath Reddy
- The Philippine Monetary System and PolicyUploaded byArrianne Zeanna
- Air Start SystemUploaded byPaolo Ferjančić
- Certification of BIM Competency for Individuals and Companies in singapore.pdfUploaded byAmar Nath
- Cebu Marine Beach Resort vs NLRC,YAMBAOUploaded byMaCai Yambao
- Design and Testing of Unbalanced Mass Mechanical Vibration ExciterUploaded byesatjournals
- Coke's International Marketing StrategyUploaded bySyed Hassan Raza