Financial Performance Practice CBA Answers

Andrej

Dear All,

Would someone be ever so kind enough to take time out to provide me a breakdown of workings for each question on how to arrive to the answers for the Financial Performace practice CBA exams (papers 2, 3 and 4) on the AAT website?

I am only concerned about section 2.2 and 2.3. These are the only two sections I am strugguling with presently.

Much appreciated!

Kind Regards,

Andrej

Nps

If I'm understanding you correctly, you're asking someone to do a big chunk of 3 different exam papers and then explain it all to you?? Apologies if I've misunderstood, but that sounds like you need to go back to your books/tuition provider and try the exam practice again when you are more confident with the subject.

Andrej

No, I am not asking someone to provide workings for three of the papers on every section. I only requested workings for section 2.2 and 2.3. I have seen in the past where fellow students have provided workings on other papers.

I thought the whole point of this forum was to provide guidance and assistance for each other? Obviously my books arent that great hence the reason for this post.

Jo Clark

Nps1976 wrote: »

If I'm understanding you correctly, you're asking someone to do a big chunk of 3 different exam papers and then explain it all to you?? Apologies if I've misunderstood, but that sounds like you need to go back to your books/tuition provider and try the exam practice again when you are more confident with the subject.

That was my understanding.... 3 papers x 2 questions on each .... and I'm sure they are probably lengthy questions.

Agree that you need to go back to your books.

Jo Clark

Andrej wrote: »

No, I am not asking someone to provide workings for three of the papers on every section. I only requested workings for section 2.2 and 2.3. I have seen in the past where fellow students have provided workings on other papers.

Could you at least type the questions here as some people don't have access to the practice assessments, and also, show us what answers/workings you have so far so we can point you in the right direction.

Andrej wrote:

I thought the whole point of this forum was to provide guidance and assistance for each other?

It is and we do.... but there needs to be a little give as well as take... :huh:

Andrej wrote:

Obviously my books arent that great hence the reason for this post.

Have you considered obtaining additional texts by a different provider if you are finding yours are not great?

Nps

I didn't say every section, I said a big chunk and I stand by that.

If you need help with something, you will find lots of us very keen to help, but you are asking a lot by asking us to provide workings for questions on 3 different exam for a potentially large part of the syllabus. Please remember, we are just fellow past and present students, helping each other out, not tutors. The questions you are asking about cover more than one area and cover a couple of hours of exam time, not to mention the time it would take to type out all the explanations.

We can also tailor our assistance better, if you narrow down what you want help with. Start with one question, show us which bits you can do, and pinpoint what you specifically need help with. I'm a big believer in that if you are struggling with a section, just being given the workings will not help you as much as being guided to the correct answer.

That aside, if you search the forum, you will find some of your requested workings already typed out (by me) when I was helping someone else.

Jo Clark

Nps1976 wrote: »

I didn't say every section, I said a big chunk and I stand by that.

AGREED, NPS said

Nps1976 wrote: »

to do a big chunk of 3 different exam papers

not every section.

Dahir Ahmed

I would listen to the Ladies Andrej. They know what they're talking about, are always willing to assist and have nothing but your best interests at heart. Myself and so many others would willingly testify to that.
If you honestly can't attempt the questions yourself, even if it means getting them wrong in their entirety, you really need to hit the book/s again.

Andrej

Here is one of the questions I couldnt arrive at.

An organisation makes two products, the Flip and the Flop. Both products use the same raw material (plastic). This material is in short supply and is a limiting factor. The following information is available for the next period.

• Demand has been estimated at 10,000 Flip’s and 20,000 Flop’s.
• The sale price per unit is £30 for a Flip and £40 for a Flop.
• The material cost per kilogram of plastic is £4 and the materials requirement is 2 kilograms for the Flip and 3 kilograms for the Flop.
• The supplier of plastic has said that only 50,000 kilograms will be available in the next period.
• The labour cost per unit is £10 for the Flip and £13 for the Flop.
• Labour costs are variable.
• Fixed costs of production are £5 per unit for the Flip and £7 per unit for the Flop.

(A) The full production cost per unit for Flip is £…….. and for Flop is £…………


(B) Total material requirement for the period is ………..kg and the shortfall is ………….kg


(C) The contribution per unit for Flip is £…….. and for flop is £……….. The contribution per unit of limiting factor for Flip is £……….. and for Flop is £………..


(D) The optimal production mix is for the production of (please choose one option from the below)

(1) 20,000 units of Flip and 20,000 units of Flop
(2) 10,000 units of Flip and 30,000 units of Flop
(3) 10,000 units of Flip and 13,333 units of Flop
(4) 0 units of Flip and 20,000 units of Flop
(5) 10,000 units of Flip and 10,000 units of Flop
(6) 13,333 units of Flip and 16,667 units of Flop

Jo Clark

Good morning Andrej

As Dahir said above, have you attempted the question/part of the question or are you just wanting the answers given to you?

Show us/tell us exactely what part you are struggling with? As NPS has said, to be told the answers won't really help you and your understanding.

Nps

Which bits of the question have you done by yourself. The first bits are just using common sense and using the info in the question. You don't need any accountancy knowledge to figure out what they are asking so I will assume you have done those unless you say differently.

Part c is a contribution question, so once you take the variable costs off the sale price, how much is left as a contribution to cover the fixed costs and profit.

Part d is the trickiest bit as you need to work out which product has the highest contribution and therefore which one should you make as many as possible of (as you will make the most profit). Any left over material when you've made those, can then be used to make as many of the other item as quantity left will allow.

Nps

Also, if you search for "flip" or "flop" in the search above, you will find this thread...

http://forums.aat.org.uk/showthread.php?36041-Financial-performance-round-2!/page8&highlight=Flip

In it, you will see how I guided someone else through parts of the question, so I won't repeat it here.

Andrej

Thank you all.