PCR Past Paper June 2010

noodles

I am on section 1.3 and can not for the life of me understand why if you have 3m more sales the revenue is 3m x £0.52
I have read and re read the question and I am sure it states that they will pay £0.52 per tub therefore a cost, how is this the selling price.
Can some smart person please take me out of my missery.
Nicky x

Newbie

reply

I have re-read the question and think you will find it makes sense if you re-read it again, however I personally find this paper the hardest out of all the other PCR exam papers I have read.

noodles

I have just re read it and still can not see that £0.52 is the selling price, it says that the chain is prepared to pay £0.52, why can they not phrase it correctly!

Ant

It looks as though you need to take into account the previous questions, as you need to include the additional 3 million.

I could be wrong, but this is what it looks like to me.

This was a horrible exam and i hope the aat have gone back to how it was before this.

I hope this helps.
Thanks
Ant.

SandyHood

I have gone back to my answer written at the time.
It might seem horrible, but I consider that a qualified accounting technician should be expected to know:

the chain is prepared to pay £0.52

Means that our customer would pay £0.52 per tub so we would be selling the tub for that price to them.

Accounting technicians are paid more because they have a level of expertise.

I've looked at the model answer and can see that part of the process is different from my own, but we both reach the same answer.

Sometimes examiners do not write down the whole question they are getting at. Unintentionally, they have something in their heads so a candidate can not understand the question in exactly the same way as it is intended.

Part (c) The cost of the extra materials required for the additional production
Was where I approached it in a more precise way than Tony Stevens has.
My approach was to take each material needed and increase by the amount of each required, giving 3 figures that I then valued.
He took the production cost per unit and multiplied by the extra units. He was fine doing this. In fact it is a quicker approach and would save vital exam time.

In all respects we should have had the same total, but as those of you who have done this question will know:
the production cost per unit is £0.4275, (0.125 kg PXS x £1.50/kg + 0.9 kg sand x £0.20/kg + 1 tub x £0.06/tub)
so in the model answer the use of a rounded cost per unit of £0.428 does mean that the answer will be slightly higher than one using £0.4275.

My answer is available by automated email reply, but only if the subject line is precisely written as:
PCR J10