likely topics for unit 6 on monday

my tutor went to a conference where the chief examiner went through what was likely to come up on the exam (because it's a new examiner this time so his style is a little different to past examiners),<BR><BR>There probably won't be a stock card to complete, instead it is likely that we will be given a completed stock card on which we will have to describe which method of stock valuation (i.e fifo, lifo, avco) is in use- this could be in the form of a memo.<BR>we may also be asked to correct any errors made on the stock card, and we may have to calculate minimum/maximum stock levels, reorder level, but we don't need to remember the reorder quantity formula.<BR><BR>Labour will definitely be assessed...with overtime and bonus payments being focussed on...remember only the overtime premium is indirect.<BR><BR>Expect a step-down method of service centra reapportionment and expect BOAR. Journals are also likely... interestingly the examiner said it's a good idea to show ur working i.e your "T" accounts as if your exam paper is borderline, if your T's were correct but ur actual answer was wrong, they'd swing it in your favour...<BR><BR>Process costing is unlikely to be assessed in june 05<BR><BR>Comparison of marginal and absorption costing is a possibility and students would be expected to understand that the diff. in profit is due to the valuation of closing stock.<BR><BR>Limiting factors will continure to be assessed as answers in the past have been poor.<BR><BR>Break Even and Margin of Safety are very likely topics, remember to read carefully to check whether the answer is to be given in units, £ or a %. if it's a % then do not express as a % of breakeven point but as a $ of sales or target sales etc.<BR><BR>DCF and payback questions will be more complex, they may include non-cash items i.e. depreciation.. it is an expense, but it isn't actual money going out of the business.. so you should ignore it.. it's just there to throw you!<BR><BR>Generally, the exams are going to be harder as the examiner thinks they are too simple at the moment.<BR>Hope this helps u all! good luck!