ECR Exam

System
System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
edited June 18 in AAT student discussion
I found section 1 ok but froze on the margin of safety and limiting factors questions. I completed the margin of safety but not sure if correct. What were the percentages? Can anyone let me know?<BR><BR>Thanks<BR>Kath<BR>
ยซ1

Comments

  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    i got 16.67 and 20ish
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    I also got 2 years and 8 months on payback, also I got a รƒโ€šร‚ยฃ118000 negative on the Net Present Value so I rejected the proposal
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    i forgot to add the overheads in each i didnt even see it there<BR>
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    Marginal :<BR><BR>Direct material 16.4<BR>Labour 10.6<BR>Overhead 6.0 (60,000/10000)<BR>=33.<BR><BR>Absorption<BR>= รƒโ€šร‚ยฃ33.00 (as per above)<BR> รƒโ€šร‚ยฃ8.00 (fixed overhead 80,000/10000)<BR>=รƒโ€šร‚ยฃ41
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    how<BR>
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    รƒโ€šร‚ยฃ33 and รƒโ€šร‚ยฃ41
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    what did you guys get for the cost per unit with absorption and marginal costing<BR>
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    what did everyone get on the limiting factor question? i think everyone agrees it was a loss but how much???
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    i put to reject the project based on npv and payback as the payback period was the same amount of years as the product'slife span and you wouldnt receive payback until the end of year 3 (assuming cash flows happen at the end of the year)
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    no if you didn't get the answer right but showed your workings then you will still get marks.
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    I got a negative NPV of 117,000. I messed up the limiting factors question i think. I went back to it at the end but run out of time. I think there was a loss but i didn't have enough time to complete the figures at the end.<BR><BR>My report was a nightmare! I rushed to finish it - what other investment appraisal technique could be used?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    I got negatibe NPV of just over one hundred, can't remeber the exact figure.<BR><BR>I said about the IRR for an alternative method - couldn't think of any commercial reasons I just put would be useful to know the cashflows in year 4 and the residual value and the end of it's life
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    reject on the npv but to accept on payback
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    wasnt sure what they were asking for on the commercial reasons so i put the time scale of the project was only 3 years, the IRR was less then 12% i also asked a couple of questions like "are there any future cash flows beyond the 3 years?"
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    Profit of 450,000 on the first and limiting factor loss of 450,000
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    NPV was (116.48) or something like that
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    Yes - i got 2.64 years or 2 year 8 months. What about the NPV?. Did you accept or reject the proposal?
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    i got 13 & 41 %
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    oh great, i hate that when that happens
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    Help - I was fine (I think) up until the last question which was on present value etc - does anyone know how the marking goes?<BR><BR>i.e - if you fail on one question do you fail everything?<BR>
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    My percentages were 16.67% and 23. something% - not sure if this is correct though!<BR><BR>
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    hello all. i got the same as kully, phew!!!! f
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    yeah thats good I got 16.67% and 23.08%
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    I think that my percentages were the same as Gully's as well - I used MOS = Budgeted sales less BE point/budgeted sales x 100
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    Hooray! I got the same as you so fingers crossed!<BR>
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    did any one get 2.7 for payback<BR>
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    I got 2 years and 8 month or 2.64 years. I rounded up the 7.71 months to 8
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    Does anyone know what the 'Commercial Reasons' were, I only could think of one, which was, the exchange rate in the european market was uncertain
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    was ther a profit on first profit&loss calc and loss on 2nd<BR>
  • System
    System Posts: 100,534 ๐Ÿค– Admin ๐Ÿค–
    ECR Exam

    I got the same as Petrol Monkey.<BR><BR>Also People get a neg NPV

Categories

Privacy Policy