Management Accounting by Kit

Please add any questions you have about standard costing here

kirsten_greenhalgh — 2021-10-06 09:31:57 UTC

2022-10-09 14:21:37 UTC

Hello😊

Does the order of elements in the formula matter? In other words, I think (AP-SP)*AQ is the same as (SP-AP)*AQ because we use A/F to express the nature of the result instead of the sign (+/-).

Therefore, can I get the mark for whichever formula I use?

Thanks a lot😊

lecture 1.1 and 1.2

2022-10-11 10:39:02 UTC

Hi Kit,
when calculating the pohr in the question we divided by the number of units as the question said on a per unit basis so we did 270000/90=£3000
however if a question said it was based on labour hours and for example the labour hours were 4000 would we do 270000/4000=67.5 or would the question always be based on a per unit basis. i hope you understand what i mean. Thank you

variances in exam

2022-10-11 17:14:43 UTC

also in the exam could we still be asked to compute the variances we learnt last year eg material price, usage, labour rate, efficiency or would we only be questioned on this year's content?

lecture engagement q

2022-10-11 17:35:51 UTC

Hi Kit, in the lecture engagement question we are not given a should cost for fixed cost budgeted so do we do
2.50x4x14500 to find it or 2.50x4x15000
would it be based on the actual or budgeted units? this is for fixed costs budgeted. in 1.1 we were given the value but i am unsure if it is based on actual or budgeted? could you also explain why? thank you

lecture engagement planning and operational regarding the new £11.50 rate

2022-10-11 18:06:03 UTC

is planning rate variance right to use as the rate is now 11.50 per hr
so would it be
AH(SR-RSR) so 60000(10-11.50)=90000 U
and operational rate variance
AH(RSR-AR) 60000(11.50-10.50)=60000 F

or have i confused myself. i am not sure if this is right?

seminar 1

2022-10-12 15:08:51 UTC

Hi Kit, i was attempting the seminar questions but i don't know if i should base the SQ on sales or production units? which would it be and why?

hi，i still dont understand whats the difference between volume capacity and volume efficency.like the lecture engagement question，when caculating the volume efficency variance，why using actual sales 14500，not the budgeted quantity15000?and this 15000 is used for caculating for capacity?many thanks

2022-10-14 17:37:51 UTC

Should cost did cost method

2022-10-16 18:59:04 UTC

When using the should cost did cost method. How do we know if we should put did cost on top or should cost on top when working out sub-variances such as material price variance, variable overhead expenditure variance etc. thank you

2022-10-18 09:41:44 UTC

Hi Ahmed and Kit,

I do not know why the total input (units to account for) must be equal to the total output (units accounted for) in the production report. what is the logic behind this?

Thank you very much for your time!😊

2022-10-18 10:19:02 UTC

Hi😊

I want to ask a general question about our course. Do we need to read the textbook before studying materials on Moodle? There is so much so I am afraid I have no enough time if I do so.

Thanks very much💗

WA and FIFO

2022-10-18 10:54:05 UTC

I have really been struggling with process costing. There are a lot of steps and a lot of work.
I wanted to ask if we would ever be given 3,4,5 stages of production.

eg in the example we were given cooking and packing. Could this be made even longer or would we be expected to only do 2 in the exam.

I am asking this because it has taken me a lot of time only to do 2 parts so would it be even possible to do more than the steps in the example in the exam? especially as in the exam there is a lot of time restraints.

2022-10-18 15:30:09 UTC

hello😊

I am confused about the number in the green circle. I wondered why it isn't 1300 because all 1300 units have completed the cooking process. Therefore I think for the 'transferred in' cost we should consider 1300 units.

Thanks very much!!😄

Are all the lectures later in the semester as long as process costing?

2022-10-18 16:05:52 UTC

It seems like a lot of content and i am struggling to keep up

Layouts

2022-10-18 18:28:23 UTC

Are the layouts provided or do we have to remember all the layouts?

Lecture engagement Part 1

2022-10-22 16:21:03 UTC

I just wanted to check if i have the traditional method right before i start the ABC method.
Is the standard tanker unit selling cost: £36.50 and the customised tanker unit selling cost £52? Or have i gone wrong somewhere?

i'm not sure if i was meant to be using the 2.3m or using the individual 0.7m and 1.6m? How would i determine this because normally you do it with the total overhead cost but the way the question is worded i assumed it would be 1,600,000/400,000 = £4 per labour hr
and 700,000/70000 = £10 per machine hr
I was confused due to the wording of the question?

ABC Lecture engagement

2022-10-23 09:55:15 UTC

in the lecture engagament we are given production runs and number of inspections.
eg for quality inspection if we are given noth production runs and inspections how would we choose the cost driver. It makes more sense for the no of inspections in this case but i was confused about this.

Lecture engagement

2022-10-23 10:15:54 UTC

i'm quite confused with understanding the cost drivers. For materials handling would the cost driver be material movements or purchase orders? Please could this be explained

2022-10-24 16:00:43 UTC

Hello Kit😊

I do not understand the 'short product life cycles'. Could you please give some more detailed explanation?

Thanks very much for your time😊

Lecture engagement Q

2022-10-24 19:47:02 UTC

For the calls handling what would that be the cost driver of?

Predetermined Overhead Rate

2022-10-27 10:34:33 UTC

Hi Kit,

For the POHR, may I know is it Budgeted Overhead Cost / Budgeted Allocation Base or Estimated Overhead Cost / Estimated Allocation Base? Is there any difference between them or is it the same?

Much thanks.

TP

2022-10-31 16:48:59 UTC

In transfer pricing would there be more of a numerical question or written question in an exam style? Most of what we learnt was written? What would you say the percentage is written to formulas?

do we need to learn all the articles for transfer pricing for the exam?

2022-10-31 18:52:15 UTC

hi，kit，will you put solutions about the bennet ltd questions?many thanks

2022-11-01 17:01:03 UTC

Lecture Engagement Question Solution - Standard Costing

2022-11-04 13:25:57 UTC

Hi! I know this is pretty late, but I think the solution uploaded on Moodle for the lecture engagement questions for Standard Costing is a wrong one? I guess you have accidentally uploaded the solution for Activity Based Costing rather than Standard Costing >o<

hi，ahmed and kit.for the james group plc，i m quite confused about the question b(1)，i think that for the alpha，it should be384000-480000=96000 loses and the same for b(2),(30-17)*10000=130000，130000-74000=56000 saves given that the beta buy all requirements from brown.so total net loss for james is 40000.i dont know why thinking like this way is wrong?many thanks

2022-11-05 20:30:28 UTC

Cost Drivers

2022-11-07 11:11:13 UTC

Hi there Kit,
Will it always be clear in a question what the drivers for a specific cost are? It's quite clear in the ABC Ltd question but I wanted to know if it may be less obvious in an exam.
Thank you!

Process costing

2022-11-09 13:49:28 UTC

Hi,
i was reviewing process costing again and wanted to ask in the exam would we be expected to work out WA and FIFO in one question or would it just be one or the other?

Transfer in in process costing

2022-11-09 13:57:45 UTC

if a process has 2 stages for example cooking and packing, does this mean there is always a transfer in in the second stage? Should transfer in always be in a 2 stage process? I am unsure of this?

FIFO Questions

2022-11-09 14:07:13 UTC

is there more FIFO questions because we did not have these in the seminars or lecture engagement questions?

q4-q6 on 2018/2019 exam paper

2022-11-11 11:15:34 UTC

Hi,
I do not understand how to do these divisional style of questions. If possible please could you upload some working out so I can try to understand it.

ROI and RI questions

2022-11-11 16:52:05 UTC

Hello Ahmed and Kit😊,

I am confused about the difference between the option b and c. Does 'use the proceeds to pay off debts' mean decrease the investment?

Thanks very much for your time❤️
Best wishes

practice questions

2022-11-13 10:01:03 UTC

is there any more practice questions because i cannot find any longer questions in the past paper for part b or c on this?

There are only linear programming ones?

2022-11-13 14:51:24 UTC

9. Pautner Company had the following historical accounting data per unit for Division A: £ Direct materials 60 Direct labour 30 Variable overhead 15 Fixed overhead 24 Variable selling expenses 45 Fixed selling expenses 9 The units are normally transferred internally from Division A to Division B. The units also may be sold externally for £210 per unit (after incurring the £45 variable selling expenses per unit detailed above). The minimum profit level accepted by the company is a mark-up of 30 per cent. There were no beginning or ending inventories. If Division A has enough excess capacity to supply the number of units needed by Division B, the minimum transfer price acceptable by Division A would be
a) £150
b) £210
c) £105
d) £129
Can you provide the working out for this as doesn't show in the exam solutions?

Will the real exam be just as hard as the 2020/21 take home examination?

2022-11-13 15:04:30 UTC

I am asking this because the 2020/21 paper has a lot more harder maths based questions in the multiple choice than the previous year? Also would the 40 mark questions be as long because it is in person? I am really struggling on how to work out the TP on multiple choice as well as the relevant cost?

hi，kit，will you put solutions about the lecture engagement question?many thanks

2022-11-15 14:08:11 UTC

L6.4 Quiz 3

2022-11-16 14:08:18 UTC

Hi Kit😊

I do not know why the answer is zero. I thought it would be b or d because if we do not make it there will be no variable cost or we could sell the raw material to the market to gain a profit.

Thanks very much for your time❤️

Best wishes

hi，kit，for the lecture question d.when caculating the cash inflows，why use the contribution6000008.5%12months.many thanks

2022-11-16 22:13:57 UTC

FIFO Questions

2022-11-18 08:46:47 UTC

Is there a possibility to get some FIFO questions? We didn't get any in the engagement, seminar or past papers. There is no questions I can find

LC

2022-11-20 09:01:51 UTC

Hi Kit, in lecture 7.3 we learnt the equation method so the questions we did in the previous lecture 6.2 can also be done with the equation method. In the exam would we be allowed to use either method because the equation method is much quicker, or would we be told that we have to do the table method we learnt in the first and 2nd lecture.Thank you

Reasoning behind using log 2

2022-11-20 09:14:34 UTC

Hi Kit,
I was wondering what is the reason behind using log 2?

Engagement question

2022-11-20 15:03:09 UTC

hi，kit，for the lecture question d.when caculating the PV of sale proceeds，why use the $200000*0.683?What is 0.683?

Doesn't LC phenomenon lead to reduction in unit cost?

2022-11-25 00:01:21 UTC

Hi Kit,
You mentioned in the lecture 7.1 that LC phenomenon is not the same as the reduction in unit cost with increase in production(economies of scale). I understand that the concept is different, but surely, if labour becomes more efficient and leads to a reduction in the time take to produce a unit, it leads to a reduction in unit cost as well?

I was slightly confused after the lecture engagement and why we did batches because it still does not show what 1 unit is?

2022-11-26 08:36:56 UTC

hi，kit，i cant watch the 8.4 video recording，so could u re-upload it?many thanks

2022-11-27 11:48:04 UTC

Seminar 4 Q1

2022-11-28 18:06:26 UTC

Hi Kit😊

I have three questions related to the first question of Seminar 4😁

The first one is about the 5th tip. I am not sure why the supervision cost is irrelevant. I think it is relevant because the expression is like this '200 hours of supervision will be required for this order' which I think if we do not have this order we do not need to think about it.

The second one is about the 8th tip. I do not know why there is no relevant cost. In my own opinion, I think we should use the replacement cost when we use the relevant cost method because it is mentioned that 'All other machinery required for this contract is already being used by Hartley' which I think means we need to replace them if the new project needs them because all other machineries are busy.

------ (8) ‘All other machinery required for this contract is already being used by Hartley. The original cash price of the machinery was £12,000; depreciation is over 10 years on a straight line basis. The resale value of the machines is standing at £6,000, and the current replacement cost is £14,000. For the purposes of charging depreciation, the scrap value of the asset is zero.’ --- From seminar 4 word dobument

The third one is I do not know why the general overhead in the 9th tip is irrelevant because I think there are fixed and variable overhead and the former is irrelevant while the latter is relevant

------(9) General overheads (to cover other costs not discussed above) are normally recovered at a rate of 100% on direct labour costs.

Thanks very much for your time!!!😊

Best wishes

it cannot to be looked

2022-11-28 20:23:03 UTC

Lecture engagement question

2022-11-28 22:24:52 UTC

Hi Kit,
I was trying to attempt the lecture engagement question and once I calculated the cost I saw that in the lecture engagement solution the profit margin calculated is at 25% for every part in the cost section. Shouldn't we be calculating the profit margin at 20% for that?

lecture engagement

2022-11-29 13:54:15 UTC

Hi, does it matter if we put H on the x or y axis for the graphical drawing? And the same for P, does it matter if p is x or y axis? If it does matter, please could you explain.

RESIT PAPER 2020/21

2022-11-29 18:28:52 UTC

Is there a resit paper for 2020/21?

Lecture engagement question

2022-11-30 17:39:17 UTC

d) advise the management of Ginnie Ltd on the purchase of additional quantities of Annealing and Finishing Labour.

The shadow prices for Annealing and Finishing are 0
10-0=10 and 15-0=15 you aren't losing or gaining contribution so I think I am lost on this question. I am not sure how to start it?

Conventional historic cost statement

2022-12-02 19:27:42 UTC

Hi Kit😊

I am wondering that whether we will be asked to prepare a 'conventional historic cost statement' during our exam which is required in out seminar. I thought we would not be required to do this because we only learn the relevant cost statement in our lecture.

Best wishes

why is there no lecture engagement video for this?

2022-12-02 19:36:32 UTC

hi，for the seminar4，question2(c),when caculating the material z for the manufacture.the following is what i did 1750-1000=750kg，7505.40.85=3442.5，1000*5.4=5400，so 3442.5+5400=8842.5which is different from the answer.so why i cant caculate like this?thanks

2022-12-02 21:27:58 UTC

Do we need to know about operating gains because we only did operating losses in the lecture?

2022-12-03 08:39:18 UTC

lecture engagement question -- unit solution and batch solution

2022-12-03 09:34:45 UTC

Hi Kit😊,

I am wondering why can't we use the learning curve formula to calculate the time spent on the first unit in the cutting department.

My logic is we know the cumulative total time of the first 25 units then we can calculate the cumulative average time which is the value of Y. Additionally, we also know X which is 25, and b which is (-0.234). After plugging these numbers into the formula we can calculate 'a'

However, the result is not the same. I know how to use the batch method I am just confused about why I can't do something like that. Is there something wrong with my thinking?

Thanks very much for your time😊

Best wishes

hi，for the seminar4 question1，how you caculate the depreciation which is 100?thanks

2022-12-03 11:46:08 UTC

Exam revision materials

2022-12-03 13:25:02 UTC

please could you provide some more revision materials like in FFMA. we had loads of questions in revision folder. is there the same for this

Could short term pricing and long term pricing be put in one exam question together because they are linked topics?

2022-12-04 13:10:09 UTC

Lecture engagement Q

2022-12-04 16:01:34 UTC

Hi Kit, As you said the lecture engagement is shorter is the lecture engagement question too short for an exam question?

L9.2 Question (a) (2)

2022-12-05 20:51:52 UTC

Hi kit😊

I am confused why we do not consider fixed production overheads there.

Thanks very much for your time❤️

Best wishes

L9.2 lecture question (a) (3)

2022-12-06 16:24:28 UTC

Hi kit😊

I am confused why we use budgeted BMK's data (100,000 units and 1000 rupees per bike) instead of new order's data such as 25,000 and 750 rupees per bike to calculate the full special order.

Thanks very much for your time!!!❤️

Best wishes

The demand function

2022-12-12 14:23:45 UTC

Hi kit😊

I am wondering do we have to follow the method mentioned in the lecture of calculating the equation of demand. I mean if I firstly get the slope of the function and then plug one point into the equation I can get the same function but without using the formula mentioned in our lecture. Is this ok?

Thanks very much for your time💗

Best wishes

hi，for the 2020-2021 resit exam，mcq 10.how to caculate the sell price 32.5.think maybe like this 19.5/(1-40%)=32.5?if so，i am quite confused.thanks

2022-12-14 16:38:01 UTC

for the 2018/19 paper why does it say error no link in capital. Was some info taken out?

2022-12-15 09:51:37 UTC

Q24 2018/19 PAPER

2022-12-15 10:25:41 UTC

Hi Kit,
New profit = (75*180)+(80*50.16) = 17512.8 Less LP profit 17,500 Shadow price of Material A 12.80

I do not understand where the 17500 LP profit came from?

Past papers 2021

2022-12-15 14:02:41 UTC

Hi, can you release the 2021 papers please because I would like to print them off to do in the holidays? Thank you

fixed overheads in standard costing

2022-12-16 08:48:52 UTC

Please can you cover this again. Thank you

Process costing operating gains and losses with WA method

2022-12-16 08:49:54 UTC

Process costing FIFO

2022-12-16 08:50:03 UTC

hi，for the 2021-2022 exam resit paper，mcq8.i dont know whats the meaning of 'mid-point process'?and how to caculate the answer d?many thanks

2022-12-16 21:55:41 UTC

Standard costing seminar q3

2022-12-17 14:46:19 UTC

Hi, i was doing the seminar questions again and I was wondering if the questions in the exams would always provide no of units, q3 does not have any units and still tells us to work out all the variances. Thank you

topics we need to know

2022-12-17 14:55:21 UTC

I am still confused which parts are relevant in this topic to the exam?

Revision drop in

2022-12-17 14:57:35 UTC

Are the revision drop ins for asking individual questions or is it like a lecture answering questions that are emailed beforehand? I mean is it 1 to 1 or everyone together?

lecture question Bradshaw

2022-12-18 10:21:58 UTC

When doing the bradshaw question it says Materials handling | Number of material requisitions on the table made for deciding the cost drivers
but then when answering the question it says materials handling cost driver is purchase orders.
This does not make sense to me as the table outlined in lecture 3.2 says the cost driver should be material requisitions. I got the whole question wrong using material requisitions which was 80 as the cost driver for materials/handling dispatch
please can you explain this to me

7.2 review question

2022-12-18 13:20:22 UTC

hi, for the follow on order of 4 units why do we still add the set up cost of 400.00?

i thought the set up would only be for the 1st 4 units so it would not be added on but why do we still add it when we are only working out the further 4 units? Please could you explain this to me
. Thank you

is graph paper provided to draw using the graphical method in the exam if it comes up?

2022-12-19 13:08:17 UTC

calculators

2022-12-19 13:17:03 UTC

does the fx991 family include the a level mathematics calculator?

In the exam do we answer the multiple choice on the cross a line sheet or write it in the answer book? Also is it ok to do the exam in pencil or is pen required?

2022-12-20 09:08:44 UTC

Prepare the main process account for the Mixing Department for July

2022-12-20 14:57:35 UTC

Hi, i am not sure what this means? We did not learn this?

thank you

ABC 2020/21

2022-12-21 10:35:07 UTC

Hi, in this question why does expected quantity not add up to the drivers.
There are 14 set ups in total but why do we use the 1200 set ups to divide by?
Thank you

hi，for the extra question bingly.why the rent for premises and equipment is a kind of fixed cost?thanks

2022-12-21 11:23:30 UTC

Bingly Q

2022-12-21 11:26:52 UTC

Hi, I am not sure why when calculating the profit in part b we do not use the 258500 as the quantity?

2020/21 resit paper

2022-12-21 13:34:58 UTC

Hi Kit, on the 2020/21 resit paper for Q11 part b it says find the unit profit but
55- 65.88= (10.88) Plymouth
45-46.27= (1.27) Newquay
65-45.42- 19.58Scarborough
95-83.95=11.05
only the last 2 are profits so shouldn't the question say find the unit profit/ loss?

is the question in the 2021/22 paper on process costing not applicable to us because it is about FIFO with operating losses which you said we do not need to cover?

2022-12-22 14:26:54 UTC

Please could you cover transfer pricing questions

2022-12-22 14:49:56 UTC

Longer transfer pricing questions please

Relevant costing

2022-12-22 14:50:16 UTC

ie 40 markers

Q14 2020/21

2022-12-22 19:26:39 UTC

please can you provide the working out for this. I also wanted to ask about the way of working it out

I did
absorbed (7900*180)=1422000
Incurred 1389825
so got the same 32175F

but then for volume variance I did
7721*20*9 = 1389780
7900*20*9 = 1422000
so i got 32220F but the answer is 32175. I don't understand what i've done wrong

same with volume capacity variance
SR(BH-AH) 20(69489-72000)=50220F
For the BH i did (7721*9)
whereas the answer is 50175F

Step7

2022-12-22 19:44:11 UTC

We did not cover step 7 and I thought it would not be in the exam as you said in the lecture we were only going through steps 1-6.
However, the above was in the revision slides

2021/22 Resit paper

2022-12-23 14:34:20 UTC

I do not understand how to work these 2 questions out? Please can you provide the working?

hi，for the 2020-2021exam paper，question13(a),we know the pricing is based on 20% margin and have already caculated the total cost which is 39165.5.so why the answer for sell price of 30 units isnt 39165.5*(1+20%)=46998.6?thanks

2022-12-23 15:54:34 UTC

XYZ

2022-12-23 17:19:59 UTC

Why is the answer not 80000?
BWIP 20000
Put into production 100000
Total Inputs 120000
C&T ?
Ending WIP 40000
Total outputs 120000

(120000-40000)=80000 units ?
Why is it not 80000? c

NPV method

2022-12-23 17:40:29 UTC

hi kit😊

I am wondering whether the NPV used in the lecture engagement session will be tested in our exam.

Thanks very much for your time❤️

Best wishes

Transfer cost for closing WIP

2022-12-24 14:55:16 UTC

For process 2 of closing WIP, why do we not use EUP for transferred in but use it for P2?
Can you explain the reasoning behind this?

2019/20 question about profit maximisation (Hagrid)

2022-12-25 13:17:45 UTC

The quantity unrounded is 171666.66667 but why do we round up to 171667 units and not round down to 171666 units. Because I thought you cannot assume you can make more of something and that we always should round down if there is a decimal in the quantity. So why did we round up in this question. If i rounded down to 171666 would it be marked as wrong? Thank you

Hi, where does the 207700 come from?

2022-12-26 13:20:59 UTC

2020/21 paper question on process costing

discursive element

2022-12-27 09:06:31 UTC

How much should we be writing for the discursive element? A page or half a page ?

2020/21 resit relevant costing

2022-12-27 14:29:11 UTC

Please could you provide a recording on the relevant costing question or please could you go through it in the drop in session?
thank you

Can we use FX991EX classwiz calculator,is it part of the FX991 family still? Thank you

2022-12-28 09:22:47 UTC

on this paper for MA it says we can use FX991 but

Hi Ahmed and Kit,

2022-12-28 09:44:52 UTC

I am doing seminar 2. and on question 3, I noticed sv of normal losses was subtracted from Total costs to get the cost of production. Should I do samely if the question offers the losses value. Thank you.

2022-12-28 11:30:40 UTC

but here it says we cannot

Process costing

2022-12-29 11:47:22 UTC

I have looked at the solutions for this but i do not understand it still
Mixing Bottling
Beginning WIP 10000 3000
Put into production 61000 67000
Total inputs 71000 70000
c&t units 67000 62000
Ending WIP 4000 8000
total outputs 71000 70000

I have included my working out but i am not sure why it would not be calculated in this way. Why is it not 62000 and why is it 69000? Thank you

19-20 Exam Past Paper Q21 Process costing

2022-12-31 11:44:01 UTC

Hi Kit😊

I am confused about the calculation here and I am afraid that I have no idea on dealing with negative abnormal spoilage.

Additionally, I am not sure how to prepare the process account. I can only remember that we mentioned this a little bit in the seminar. Could you please explain the method more detailedly?

Thanks very much for your time💗

Best wishes

how do we calculate a transfer price

2022-12-31 15:13:49 UTC

I seem to always get confused on how to work out minimum transfer price or the expected transfer price
Thank you

19-20 resit exam past paper

2023-01-02 10:01:59 UTC

Hi Kit😊

I am not sure why the answer of this question is (b). In the PPT (a) is mentioned as the usage of overhead rate. Is this because 'Work in process'?

Thanks very much for your time💗

Best wishes

hi，for the 2020-2021 resit exam，question14，how to caculate the traditional cost for the glass(10400) and wood（54900）？and for the relevant cost of glass，is 54200=10800 and same for wood is 381200+72*200=60000.i m not sure whether what i think is right?thanks

2023-01-02 16:05:35 UTC

Question 21 (a), Paper 2019/2020

2023-01-02 22:59:35 UTC

Hi,

I was wondering if you could explain why the units accounted for in the completed and transferred out is 40,000 for started and completed, and 10,000 from beginning WIP. For the 10,000 Beg, WIP is that from the 1st May?

Also, why is the normal wastage 3,000 and abnormal gain 1,000?

Thank you!

Question 21 (d), Paper 2019/2022

2023-01-02 23:00:39 UTC

Hi,

Why is it that the Normal wastage has a value of £0?

2019/20 paper

2023-01-03 11:19:43 UTC

I do not understand this part why expected output is 49000 and i also do not understand why you do the equivalent units times 0.95?

Practice Papers

2023-01-03 19:28:33 UTC

Hi Kit,
For Q21 part b) in the 2019/20 exam paper, it asks to find the EUP. In the lectures it says to add the C&T units, adjusted Ending WIP and normal and abnormal spoilage, but in the answers, it does some other method that gives another answer compared to what I would expect if I did what the lectures told me.
Thank you for your time

19-20 resit paper Q21

2023-01-03 23:10:08 UTC

Hi
Is the number 175500 wrong? For Beg. WIP in the question, I think it should be 17,500 instead?
Thank you.

FIFO Method

2023-01-04 01:11:30 UTC

Hi,
Will the FIFO Method be examed under the situation of no operational losses?
Thank you!

Hi Kit, do you know about if we have to do the multiple choice in the answer book or cross a line sheet?

2023-01-04 08:58:32 UTC

Process account

2023-01-04 09:09:59 UTC

Hi, do we have to prepare a process account because we did not cover this in the lecture or lecture engagement?
Thank you

20-21 exam past paper section c Q14

2023-01-04 09:56:34 UTC

Hi Kit😊

I am confused about the the C) question asking about the total fixed cost variances.

Why can't we use actual labor hours times predetermined labor rate (72,000*20) to calculate the absorbed fixed cost which is not the same answer calculated by using unit (1,422,000)

Thanks very much for your time💗

Best wishes

2023-01-04 11:34:28 UTC

Hi, here in the table the cost driver for materials handling is materials requisition but when we did the example why is the cost driver purchase orders for materials handling? I am quite confused. please can you explain this? Also can you explain what a material requisition is? I thought it would be a list of the materials that would be used in the production/ manufacturing process? Thank you

Traditional Costing Method

2023-01-04 13:35:05 UTC

Hi ^^
Why is the traditional method appropriate when the information costs are high? What does it mean by information costs?
Thank you.

Question

2023-01-04 14:32:41 UTC

i keep getting 62000 which is not even an option and i do not really understand the working out

2023-01-04 14:34:18 UTC

Traditional costing lecture engagement question

2023-01-04 15:05:58 UTC

When doing the lecture engagement non production overhead for traditional costing can we do
990000/ (36.50*200000)+9%2*50000) instead of the method shown to get the £0.10 per production cost . Is this correct?
Thank you for your time

Lecture engagement question

2023-01-04 15:17:49 UTC

Using ABC, calculate absorption rates for each of the 5 types of overhead cost AND c calculate the full unit cost for each type of tankard.
Why have we calculated 8 costs in the answer instead of 5 it says
is that extra part for part c where you need to find the unit cost hence you need to use all the data?

Just for clarity, could you please confirm what parts are examinable in this topic? Am I right in presuming calculations for FIFO and operating gains is not required

2023-01-04 19:33:56 UTC

How do we calculate transfer prices?

2023-01-05 09:10:54 UTC

NPV method in performance management

2023-01-05 12:59:35 UTC

Do we need to know this method we did in the lecture engagement because it did require the annuity factor which we do not have a table for in the exam?

21-22 Resit Exam Q11

2023-01-06 14:07:28 UTC

Hi Kit,
In this question,
Standard Direct Labour Hours=82000
Actual Direct Labour Hoours=85000
Fix Overhead Rate=0.15

Normally, to calculate Absorbed FOH, we use Actual hours * Fixed Overhead Rate.

But why here use Standard Labour Hours *Fixed Overhead Rate?
Thank you.

21-22 Resit Exam Q12 Transfer Price range

2023-01-06 17:49:42 UTC

When calculating the lowest acceptable price for East, does 38 here means an opportunity cost? If there's no idle capacity, does that mean that East can not sell any units to the external market?

By the way, when calculating the lowest acceptable transfer price when there's no capacity, should we always use variable cost+opportunity cost?

20-21 exam past paper section A Q6

2023-01-06 17:53:49 UTC

Hi Kit😊

I am still confused about the calculation there after looking at the answer sheet. I am not sure the logic behind the second and the third steps shown on our answer and the reason we need to consider the finished goods inventory.

Thanks very much for your time💗

Best wishes

20-21 exam past paper section A Q9

2023-01-06 17:58:09 UTC

Hi kit😊

I am confused why we don'y consider the variable selling expenses in this case. I thought the minimum price should include all variable cost.

Thanks very much for your time💗

Best wishes

Could you please explain what binding and non binding constraints please? getting a bit confused. thanks!

2023-01-07 22:30:34 UTC

Could you please explain a bit more about price setters and price takers and the linkages?

2023-01-08 09:46:33 UTC

learning curve

2023-01-08 14:21:46 UTC

When doing learning curve calculations for example
20*150^-0.152=9.33822...
is there specific decimal point we need to round to or can we just round to 9.34*150 or should we keep the full answer 9.33822...*150
This rounding gives the same answer but for some questions the rounding makes the answer a lot different? sometimes a few hundred difference in the hrs.

part c 2021/22

2023-01-08 14:28:54 UTC

to find the price if the contract was placed together
why do we not use the figure for 250 and then the learning curve ceases for a further 400. I do not understand this? if the order was placed together sure you would just order till the learning stop and add the ones from after the learning ends. I am quite confused why we do not do it this way?

hi，for the 2020-2021exam，mcq8，why use 850000/25000 rather than(850000+125000)/25000=39，thanks

2023-01-09 10:49:34 UTC

19-20 Exam paper section A Q1

2023-01-09 12:28:33 UTC

Hi Kit😊

I am confused about this question because I think there is not a right answer. I thought B should be measured by variable overhead efficiency variance and variable overhead spending variance is effective in measuring the change of wage (if it is measured by labor hours)

Thanks very much for your time💗

Best wishes

Exam Topics

manavmander03 — 2023-01-09 13:41:21 UTC

So is there a chance that I revise a whole topic and cover the seminar question on it and it only comes up as a 2 marker in section A ?

L 9.3. Question of YNQ

2023-01-09 16:55:00 UTC

Hi Kit,
In the example of YNQ, I was just confused about where we account for the £10k cause in the solution we only take £30k.
"The cost of this inspection process would be £40,000 per year (including £10,000 allocation of existing factory overhead)"

I am struggling quite a lot on transfer pricing and specifically the longer examples in past papers and working out the minimum transfer price

2023-01-09 18:21:36 UTC

Mills Company

2023-01-10 09:42:25 UTC

2021/22 paper. Hi Kit, i found this question particularly difficult because the format was very different to the questions we had done on this before. How do we know what do put as variable and which are fixed?

Process Costing (2019-20 Paper)

2023-01-10 11:59:31 UTC

Hi kit,

I am doing the 2019 paper for Management Accounting and am attempting Q21 in section b. I understand how to do it but am unsure why the abnormal loss is used as a balancing figure? Wouldn't you add that to the ct, closing and normal values to find total units accounted for? Perhaps to do something with normal, ct and closing already exceeding the total inputs but am unsure when to balance and when to not? Thanks

Cost Drivers

2023-01-10 15:44:14 UTC

Hello,

I am quite unsure about how to calculate the cost drivers. I was attempting the lecture engagement question, I am confused about how you get 17000 for material mvmts and 7000 for no. of inspections.

Many thanks

Hi, are there any more questions for practice? Thank you

2023-01-10 16:59:00 UTC

seminar 4 q2

2023-01-10 18:49:31 UTC

Hi Kit,
I was just wondering for Q2. ii, why do we only take £15000 of fixed cost? We would have absorbed the £10k in making of the first 150 units and then to make another 350 units , why do we not include the whole £25k instead of just 15k?
thanks :)

Seminar 4 LC

2023-01-10 20:13:39 UTC

Hi Kit, I am unsure of the bit i have highlighted and how we came to this figure. Please can you explain why we do not apply the discounted price to all of the requirement? Thank you

Linear Programming Graphical Method

2023-01-11 00:54:09 UTC

When we calculate the objective function and formulate it LP, I know this may sound simple but kinda struggling to plug those values into a graph. Could you please go over this in the next revision session please? I think you mentioned in the LE you would go through this but I can’t see anything. Thanks!

Paper 2020-21 Q13c

2023-01-11 13:21:38 UTC

When we calculated the price for 30/ 170 nutcrackers in parts a/b we included the 20% margin in the final price. However in part c, (the cost for the combined 200 units) we don't add together the profits+margins, we add together just the profits without the additional margin cost

Why is this?

Thanks!

Hi Kit, when will the recording for relevant costing question be made available?

2023-01-11 16:34:45 UTC

Seminar 4 Q1 Tip8

2023-01-11 21:35:31 UTC

Hi Kit😊

I was trying to re-try this question and the sad story is new mistake comes😓

In the relevant costing method I thought the relevant cost for all other machinery mentioned in the 8th tip should be 6000 because we could sell it if they are not needed in this order while the correct answer is not relevant😢

What is wrong in my logic🤔️

Thanks very much for your time💗

Best wishes

20-21 Resit Exam Paper Section C Q13

2023-01-11 22:11:47 UTC

Hi Kit😊

I just want to ask the expression 'at a premium of 4' means extra material cost not the total cost of clay am I right? (I guess this is an English question😅)

If I am right above, I need to compare this number with the shadow price to decide whether to buy extra clay (This is the accounting question😁)

Thanks very much for your time💗

Best wishes

kirsten_greenhalgh — 2023-01-12 09:57:34 UTC

Operating gain in production report

2023-01-12 10:43:51 UTC

Hi Ahmed & Kit,
According to Ahmed's email, we are expected to prepare a production report for a process with operating gains in a period. May I know how to do it? Thank you.

NPV for performance management

2023-01-12 11:35:42 UTC

I missed the last revision session so would we get a table in the exam for this?

lecture engagement question

liymc39 — 2023-01-12 13:06:46 UTC

Hi,
for the lecture engagement question on relevant costing, i am unsure where the value of '£11200' for variable overheads and '£1600' for material P2 came from. These are the values shown in the solutions but there was no working shown.
Thank you for your time!

ROI and RI worksheet

2023-01-12 17:03:09 UTC

Why do we not include 'uncontrollable fixed cost' and 'allocated head office costs' for part 2 of the worksheet when working out the ROI. But for parts 3 and 4 we include it in our calculations . Thank you

Lecture engagement Long term pricing (musgrove and elliot)

2023-01-12 17:24:30 UTC

Hi Kit, in the example it says the fixed costs are evenly split but lets say it did not say this and was instead based on demand
3,000,000/ (50000+75000)=£24 per unit
Then allocate these based on
Elliot (50000*24)=£1,200,000
Musgrove (75000*24)=£1,800,000

Would this be correct for the other approach if it wasn't mentioned. I wanted to try this way as an adaptation of the question. Thanks

Process costing

2023-01-13 09:59:02 UTC

In the revision lecture you went over the differences in creating a production report when it gives the different options of percentages
When it says material inputs were 5%, would this be the put into production needs to be used to work out the 5% losses
and then if it says 5% of total inputs or 5% of inputs does this mean beginning plus put into production?

Please could you clarify on this part?

Hi for the James group plc question I don't understand why contribution is used throughout as when i first attempted the question I just did the number of units x the sales price and not contribution. Please can you explain why contribution is used and is it always used when calculating transfer prices.

2023-01-13 10:34:58 UTC

Thanks for your time

Minimum pirce

2023-01-13 13:37:17 UTC

Hi Kit😊

I am confused about the minimum price in different context because it seems that it has different definition in different questions.

For example, in the seminar 4 Q2 when it asks about the minimum selling price we considers not only the fixed cost but also the requirement of 25% profit margin. However, in the L9 lecture engagement session, when it asks about minimum price in the b) part we only consider the variable cost without considering the fixed cost and the requirement from the company of 25% profit margin (the picture is on the next post)

I can basically understand the fixed cost part because in the seminar question it mentioned that the fixed cost is because of the order which means there is no fixed cost without this order (but I am nor sure this is right understanding). What I am really confused about is the requirement form the company (the required profit margin). It seems that sometimes we include this in our minimum price and sometimes we do not.

Thanks very much for your time💗

Best wishes

L9 engagement question part b) minimum price

2023-01-13 13:39:09 UTC

Seminar 4, Q2

2023-01-14 04:51:22 UTC

When calculating the labour hours, for manufacturing i got 1031.28 and assembly was 1050.53. This rounds manufacturing down to 1031 and assembly up to 1051 however in the solutions it is 1032 and 1050. Ive seen that the time per unit was rounded first then multiplied by 150 units however i always leave rounding to the very end. Will i be marked down for this since my numbers are slightly different due to rounding but my method is correct?

Still the minimum price

2023-01-15 10:20:19 UTC

Hi Kit😊

Thanks very much for your reply. Does this mean that we need to consider the fixed cost and profit margin requirement if the order is in the normal course of the business and we do not need to include them when the order is outside the normal course (when we calculate the minimum price)?

Thanks very much for your time💗

Best wishes

Hi, there are a few questions under process costing that haven't been answered for a few days. They may have been missed.

2023-01-15 11:04:11 UTC

Hi for when calculating the cost of completed and transferred out units do you always include any losses (normal and abnormal) or is it a separate cost/step where the question will ask specifically for this?

2023-01-18 11:07:38 UTC

Thank you for your time

LP

2023-01-18 19:19:12 UTC

Hi, do we lose marks if we round up to 50.17 instead of 50.16? Thank you

stable conditions i.e. labour force & labour mix

2023-01-18 20:24:20 UTC

i don't understand what it means by stable conditions and labour mix for learning curve

kirsten_greenhalgh — 2023-01-19 17:13:17 UTC

where PV = Present Value and FV = future value

2023-01-20 01:00:18 UTC

How would you calculate the joint cost for this question? 2021 Paper. I feel like I keep on doing this wrong and my values are completely off. Thank you!!

how many marks can discursive questions be up to? I know there is a range but could it be half the question as discursive or is it usually less? thanks

2023-01-20 16:59:21 UTC

kirsten_greenhalgh — 2023-01-20 18:43:52 UTC

As you can see, scrap is set off against materials. Hope this helps, Kit

Hi, for the 2020/2021 paper question 14 part b, I don't understand how the fixed cost per hour is 20. I understand how to get the total hours, but I am confused on how we get 20.

2023-01-20 19:14:52 UTC

Thank you

Linear programming

2023-01-21 08:35:21 UTC

Hi, what is the difference between these 2 Kidd quantities? How are they different

Process Costing

2023-01-21 10:38:26 UTC

Hi when calculating the EUP and the costs are added evenly i'm unsure of how to do it as we don't know what the %'s would be unlike when it tells you in the question when they are added unevenly.
Thank you

process costing WA

2023-01-21 11:01:03 UTC

in this question we minus the sv in the c&t part at the end but in all the other questions we did we subtracted the 1500 from the DM column, why is it different here because you get different answers dependent on what you do?

2020/21

2023-01-21 11:43:14 UTC

Hi, why is there a negative in front of the 50220 when its favourable we have used more capacity? would we still get the marks if we put 50220 F

for long term pricing

2023-01-21 12:56:38 UTC

eg
if we get a value for q= 1233.43 do we say it would be 1233 or 1234

similarly if it said q=1233.56 would we round up to 1234 or round down to 1233

thanks

LC

2023-01-21 19:06:06 UTC

hi, here for total price the margin is included but on another one it excluded the margin part. Which is right?

and then for the a different question the nutcracker one the margin was not included in the calculation? This does not make sense to me?

2023-01-21 19:09:35 UTC

21-22 Resit exam paper section A Q10

2023-01-21 21:40:40 UTC

Hi Kit😊

I am confused about how we get the number '8,000' in the closing WIP. I though it was 12,000 because it is mentioned in the question that the closing WIP was 12,000kg

Thanks very much for your time💗

Best wishes

21-22 Resit exam paper section c Q14

2023-01-21 21:54:53 UTC

Hi Kit😊

I found that when we calculate the cell value of the waterproof polyester constraint, the results are different between two different methods: the first one is plug S=165.51 and C=110.34(the optimal solution) into 5S+3C (the formula of waterproof polyester) which is 1158.57. The second method is deducing 241.38 (slack provide in the question) from the total number (1400) which is 1158.62 (the correct answer). I guess this is because of the rounding issue and they are quite similar therefore I want to ask that whether they are all correct answers?

Thanks very much for your time💗

Best wishes

Process costing

2023-01-22 08:08:52 UTC

here we were told to minus from the current period costs but in the calculation it was taken off at the end at C&T

2023-01-22 08:09:58 UTC

The SV (sales value) why is it minus from the end at c&T when we were taught in the lectures to minus it from the costs report??

Long term pricing

2023-01-22 12:59:52 UTC

eg for when we work out profit maximising demand
if we get a value for q= 1233.22 do we say it would be 1233 or 1234 because the contribution from both would be the same so whichever Q value used so which should be used? and why?

similarly if it said q=1233.56 would we round up to 1234 or round down to 1233?

kirsten_greenhalgh — 2023-01-22 13:31:03 UTC

current attainable standards

2023-01-22 14:43:32 UTC

Hi Kit😊

I have no idea what are 'current attainable standards' in this question.

Thanks very much for your time💗

Best wishes

18-19 main exam past paper section A Q6

2023-01-22 14:49:49 UTC

Hi Kit😊,

I am confused about this question because my own answer is worse off by 55,000 which is not one of the choices.

I thought we should use 5,000*(18-11) to calculate the spare units and use 5,000*(18-11-3) to calculate the extra units. I am not sure the correct thinking way.

Thanks very much for your time💗

Best wishes

LP

2023-01-22 17:13:25 UTC

If their was a report with missing gaps do we write them in the answer book and put all the headings because its quite time consuming to copy out the whole thing

So can we put under labour constraint missing gap for status is binding

2023-07-20 23:50:29 UTC

What date exactly is the resit?

Topics list coming out for resit paper

2023-07-21 03:32:51 UTC

Dear miss Kit,
If I'm not mistaken, I remembered that you have said that topics that came out before for the main sit paper will not come out again in the resit paper? If possible, could you kindly let us know what are the leftover topics that will be coming out for the resit paper (after eliminating topics that came out before for the main sit), it will be very much helpful for our revision.
Thank you very much.

Will the 2022/23 paper be available for revision

2023-07-24 19:52:56 UTC

paper 2020/21 mcq 6

2023-08-03 10:23:38 UTC

Hi, please can you advise me where I have gone wrong with this question, I'm confused about how the actual answer has been found and why we take off the start WiP for bottling. Thank you

ISO-PROFIT LINE

2023-08-08 02:06:24 UTC

hi i dont understand how the iso profit line helps us find the maximum contribution point when doing the graphical approach

Resit 2019-20 paper

2023-08-09 00:22:08 UTC

Why is the answer here B instead of A>

Rounding

2023-08-09 09:20:46 UTC

In terms of rounding, what is the general guidance? I usually continue using my unrounded figures throughout the questions but sometimes the mark scheme contradicts this. What should I do in the exam?

Management Accounting by Kit

Please add any questions you have about standard costing here

lecture 1.1 and 1.2

variances in exam

lecture engagement q

lecture engagement planning and operational regarding the new £11.50 rate

seminar 1

Should cost did cost method

WA and FIFO

Are all the lectures later in the semester as long as process costing?

Layouts

Lecture engagement Part 1

ABC Lecture engagement

Lecture engagement

Lecture engagement Q

Predetermined Overhead Rate

TP

do we need to learn all the articles for transfer pricing for the exam?

hi，kit，will you put solutions about the bennet ltd questions?many thanks

Lecture Engagement Question Solution - Standard Costing

Cost Drivers

Process costing

Transfer in in process costing

FIFO Questions

q4-q6 on 2018/2019 exam paper

ROI and RI questions

practice questions

Will the real exam be just as hard as the 2020/21 take home examination?

hi，kit，will you put solutions about the lecture engagement question?many thanks

L6.4 Quiz 3

hi，kit，for the lecture question d.when caculating the cash inflows，why use the contribution600000*8.5%*12months.many thanks

FIFO Questions

LC

Reasoning behind using log 2

Engagement question

Doesn't LC phenomenon lead to reduction in unit cost?

I was slightly confused after the lecture engagement and why we did batches because it still does not show what 1 unit is?

hi，kit，i cant watch the 8.4 video recording，so could u re-upload it?many thanks

Seminar 4 Q1

it cannot to be looked

Lecture engagement question

lecture engagement

RESIT PAPER 2020/21

Lecture engagement question

Conventional historic cost statement

why is there no lecture engagement video for this?

hi，for the seminar4，question2(c),when caculating the material z for the manufacture.the following is what i did 1750-1000=750kg，750*5.4*0.85=3442.5，1000*5.4=5400，so 3442.5+5400=8842.5which is different from the answer.so why i cant caculate like this?thanks

Do we need to know about operating gains because we only did operating losses in the lecture?

lecture engagement question -- unit solution and batch solution

hi，for the seminar4 question1，how you caculate the depreciation which is 100?thanks

Exam revision materials

Could short term pricing and long term pricing be put in one exam question together because they are linked topics?

Lecture engagement Q

L9.2 Question (a) (2)

L9.2 lecture question (a) (3)

The demand function

hi，for the 2020-2021 resit exam，mcq 10.how to caculate the sell price 32.5.think maybe like this 19.5/(1-40%)=32.5?if so，i am quite confused.thanks

for the 2018/19 paper why does it say error no link in capital. Was some info taken out?

Q24 2018/19 PAPER

Past papers 2021

fixed overheads in standard costing

Process costing operating gains and losses with WA method

Process costing FIFO

hi，for the 2021-2022 exam resit paper，mcq8.i dont know whats the meaning of 'mid-point process'?and how to caculate the answer d?many thanks

Standard costing seminar q3

topics we need to know

Revision drop in

lecture question Bradshaw

7.2 review question

is graph paper provided to draw using the graphical method in the exam if it comes up?

calculators

In the exam do we answer the multiple choice on the cross a line sheet or write it in the answer book? Also is it ok to do the exam in pencil or is pen required?

Prepare the main process account for the Mixing Department for July

ABC 2020/21

hi，for the extra question bingly.why the rent for premises and equipment is a kind of fixed cost?thanks

Bingly Q

2020/21 resit paper

is the question in the 2021/22 paper on process costing not applicable to us because it is about FIFO with operating losses which you said we do not need to cover?

Please could you cover transfer pricing questions

Relevant costing

hi，kit，for the lecture question d.when caculating the cash inflows，why use the contribution6000008.5%12months.many thanks

hi，for the seminar4，question2(c),when caculating the material z for the manufacture.the following is what i did 1750-1000=750kg，7505.40.85=3442.5，1000*5.4=5400，so 3442.5+5400=8842.5which is different from the answer.so why i cant caculate like this?thanks

hi，for the 2020-2021 resit exam，question14，how to caculate the traditional cost for the glass(10400) and wood（54900）？and for the relevant cost of glass，is 54200=10800 and same for wood is 381200+72*200=60000.i m not sure whether what i think is right?thanks