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CBA question example

as i know what to include in cba and rules of it. but can somebody help me how to tackle with the table that comes up in the exam.. it would be helpful if someone have the example of the cba table.
Ishrat

Comments

  • IshratIshrat Registered Posts: 43
    Hi, I would suggest have a look at the AAT assessment 2. I just noticed today question 6 has been updated to CBA. This wasn't the case earlier both of AAT practice papers were based on SWOT. Its only the question 6 they updated (must be recently) , all the rest of the paper is same as before.
    I had SWOT last time so this time it could be CBA 😭. Don't know what to expect. I have exam on Thursday.
    All the best to you.
    aroonaz
  • aroonazaroonaz Registered Posts: 51
    thanks you soo much. i have exam on tuesday. all the best to u too..
  • aroonazaroonaz Registered Posts: 51
    @ishrat plz can u take the screenshoot of cba question table and send me.. i have the answer i just need the question.. i would really appreciate it.
  • IshratIshrat Registered Posts: 43
    Hello, i try to attached the scenario and questions .
    Hope it helps .
  • IshratIshrat Registered Posts: 43
    I attached the screenshots, let me know in case you don't receive them.
  • aroonazaroonaz Registered Posts: 51
    @Ishrat thank you soo much.
  • Agnes_05Agnes_05 Registered Posts: 6
    edited March 10
    The research cost in Task 6 paper 2 is treated as general overheads please ? since it is not included with the costs table

    And can you provide me with an answer for the below. (Same question as the one above)

    - Recommend, with TWO reasons, whether SLP should make the proposed investment in
    the product costing and production scheduling software.
  • aroonazaroonaz Registered Posts: 51
    research cost is irrelevant to the decision as it is sunk cost which is already taken not depending on the decision we will take.
  • Agnes_05Agnes_05 Registered Posts: 6
    edited March 10
    So sunk cost, renting, depreciation are the ones which should not be included in the CBA analysis right?
  • aroonazaroonaz Registered Posts: 51
    renting should be include as it is relavant. other sunk cost not include
  • aroonazaroonaz Registered Posts: 51
    if u want to rent some shop so the renting cost is direct cost so it is relavant to the decision.. sunk cost are those which are already incurred cannot reversed back so it is not relavant. committed cost and sunk costs are irrelavant to the decision we are going to take as the past costs already been taken.depreciation is also irrelavany.
  • IshratIshrat Registered Posts: 43
    Hey @aroonaz I thought as rent is fixed cost therefore its irrelevant, it wouldn't be consider relevant cost because whatever decision you make the rent cost will not change. Yes sunk and committed cost are irrelevant. Technically wouldnt rent not be considered as part of committed cost.
  • aroonazaroonaz Registered Posts: 51
    but if we provide with 2 scenario and both have different rent? so it should be included in decision making.
  • aroonazaroonaz Registered Posts: 51
    yes if the rent is already fixed of the premises so it must be fixed cost unless we needed more space to cope with new production.
    u have to watch out carefully if the rent is alreasy fixed or is going to be fir the new shop
  • IshratIshrat Registered Posts: 43
    In that perspective yes you right. The key would be what they highlight in the scenario. How your exam went well. All the best. How did you find it?
    For question 6, did you had SWOT or CBA?
    N question 2, how was that like.
  • aroonazaroonaz Registered Posts: 51
    yesterday in my assestment i have provided with 2 situations both have different rent and labour etc. i have to decide which shop to rent out.
  • IshratIshrat Registered Posts: 43
    Thank you, yes make sense. I would prefer if I get question on producing product in house or by the external supplier. I think as long you understand the concept it makes sense, I'm hoping I don't get the contributions n limiting factor type question. I get confuse every time when I see such question @aroonaz.
    How was question 6 & 2 for you.
  • aroonazaroonaz Registered Posts: 51
    q2 was a cash budget. u have to find the weakness in budget and u have to recommend internal controls for cash handling
    q6 was cba. u have to decide u should adpat the system on not in cba basis plus u have to write non financial factors. it was quite same like one in the online assestment.
  • aroonazaroonaz Registered Posts: 51
    i did not know anything about cash budget but i managed to do internal controls like watching out cash movement, authorisation cash payment etc. but did not get any point to write under weakness as i did not understand cash budget.
    do revise trail balance as i got trail balance q under q1 worth 5 marks like which things can affect trail balance total u have u to choose from options given.
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