Economics, Accounting & Business: Post your doubts here!

[Saad Ghori]

which one are you not getting right??

What answers are you getting?

 

[MnMz]

What answers are you getting?

1- A
2- B
3- C
4- I'm not sure about it....

What about you?? what did you get??

 

[Saad Ghori]

did you check it? Answers are A, B, B, B.

the first 3. In 4 maybe I dunno the concept, the budget of the limiting factor is prepared first?

Im getting D B C B
Elaine explain Q1

 

[MnMz]

did you check it? Answers are A, B, B, B.

the first 3. In 4 maybe I dunno the concept, the budget of the limiting factor is prepared first?

3rd one cannot be B at all...its C!!!
And 1st A ....Im pretty sure!!

 

[Saad Ghori]

3rd one cannot be B at all...its C!!!
And 1st A ....Im pretty sure!!

Yeah its C alright.

 

[MnMz]

Im getting D B C B
Elaine explain Q1

Well it's said that his creditors allow him two months credit...that means he pays two months after the production which is also 2 months before the month of sale.
Eg: Materials bought in January, used in Feb and sold in May......2 months after production is March..so they pay in March which happens to be 2 months before May the month of sale....

Apply this concept to the question
Tell me if you don't get it....I'll provide the detailed calculation =)

 

[Saad Ghori]

Well it's said that his creditors allow him two months credit...that means he pays two months after the production which is also 2 months before the month of sale.
Eg: Materials bought in January, used in Feb and sold in May......2 months after production is March..so they pay in March which happens to be 2 months before May the month of sale....

Apply this concept to the question
Tell me if you don't get it....I'll provide the detailed calculation =)

In august hes paying for the purchases of May. Which is used for the production of June. Which is then sold in September. The sales revenue at september is 115000. If we take 50% of it, it'd be 57500 :s
Am i makin any sense?

 

[Saad Ghori]

Yeah they pay 2 months before sale, that means we should divide October Sales by 2 to get August payments. How did you get October Sales as $100000?

Effed up question I tell you

 

[Saad Ghori]

yeah. how did you do 2 anyways?

Flex the variable cost and the sales. Leave the fixed cost as it is.

 

[MnMz]

In august hes paying for the purchases of May. Which is used for the production of June. Which is then sold in September. The sales revenue at september is 115000. If we take 50% of it, it'd be 57500 :s
Am i makin any sense?

Gosh ...two months before August is July!! because you buy in July ...two months later is August....

 

[WaleedUQ]

hey Mcqs time yet for anyone? check them when it is time.View attachment 12302
Thanks

1)B,C
2) B 34
3) formula bhool gaya
4) cash or sales ( i would have choose cash )

 

[Saad Ghori]

yeah but thats the thing...thats how we do in Flexible Budgets...this is a Fixed Budget, it is not supposed to be flexed (a theory question also came in P4 on this issue).

Omg i thought it was written flexed xD And still my answer was right

Gosh ...two months before August is July!! because you buy in July ...two months later is August....

Now i feel dumb cos im still confused Ah leave it

 

[Echelon94]

Gosh ...two months before August is July!! because you buy in July ...two months later is August....

say what? 2 months after July is August? lets count. 1 month after July = August. 2 months after July = September.

 

[MnMz]

Omg i thought it was written flexed xD And still my answer was right

Now i feel dumb cos im still confused Ah leave it

No No No...you have to get it....!!

 

[MnMz]

say what? 2 months after July is August? lets count. 1 month after July = August. 2 months after July = September.

I mean June...my bad

 

[MnMz]

I mean June...my bad

So in June the Sales are 100000 and the materials bought are 50000 ...which are paid in August...hence the answer A! =)

 

[Saad Ghori]

So in June the Sales are 100000 and the materials bought are 50000 ...which are paid in August...hence the answer A! =)

We're not buying material for junes sales :/

 

[Saad Ghori]

haha...guys this is a @!$%ing specimen paper, which is supposed to show how our papers will be like
what are we supposed to expect from the actual papers now

010 specimen paper right? Papers have been easy so chill

 

[WaleedUQ]

payment for august means
that the goods were bought in May
We paid supplier after 2months during August
If we purchased material that means that
sale for sept which are 115 50% of them cost for prod
57.5 is the ans **** the mark scheme !

 

[MnMz]

We're not buying material for junes sales :/

We buy the Material in Jan for instance...then we produce in Feb and Sell in May
Hence Jan Materials are 50% of May's sales...
Apply that with June and August! =) Got it??