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Sir I meant that they have paid the 840 on 30/june/2003
And yes sir this question is indeed a question from the kaplan text but I typed out the relevant part that asks for the accruals since I am confused in that right now

Sir so I thought the payment is supposed to cover from february to april since it said 3 months till 30 april
So why are we talking about may and june when the payment is only supposed to cover till april?

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Also sir in the same way if they say that a bank error cheque has been debited to Worcestor instead of another customer…would that mean that the bank has accidentally given money to Worcestor?

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Oh okay sir but when i’m doing the CBE exam..is it tested from the theory of kaplan or BPP since both textbooks seem to be very different in terms of the depth each book is covering in the syllabus

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incurred at the date of sofp..which means that the exoense should not happen after the year end of the SOFP to be considered in the cost of inventory?

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Sir the previous reply is supposed to be deleted and this is what I was meant to ask

Sir would the non-controlling interest also be recorded in the SOFP???

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But if the subsidiary sold the inventory to parent then it would affect both retained earnings and NCI right sir??

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Oh okay understood that clearly sir but could we also take it as a going concern?

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And what type of account is a disposal account sir?

I couldn’t figure out whether it is an asset account or not

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Oh okay alright..understood sir

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Oh okay sir thank you very much sir

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Poor question which means that the paper hasn’t clearly asked the question properly right sir?

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The answer for this question was in the kaplan revision kit book and yes $300,000 was the same answer for which you calculated

Sir could you explain where you got the figures of 10 and 8 when you found 6.25 hours for each unit

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Ohhh ok sir but isn’t 250 standard then because $5 is budgeted?

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Ok so for this question we don’t consider standard time because it is budgeted and not standard right?

Budgeted production in a factory for next period is 4,800 units. Each unit requires five labour hours to make. Labour is paid $10 per hour. Idle time represents 20% of the total labour time.
What is the budgeted total labour cost for the next period?

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Oh okay sir I understood this now thank you very much sir

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Oh okay thank you sir

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Okay but does that mean that cluster and quota are completely not random?

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Sir what about the rent that was already existing before the investment?

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Oh ok so basically for MA all that is needed to know about idle time is that it is included when we caluculate labour hours right sir???

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Sir I just found out that there is something called normal idle time and abnormal idle time

Apparently for normal idle time we include the cost but for abnormal idle time it is not?

Is this true and if so does that apply in a similar fashion for labour hours

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Oh ok sir I understood thank you very much for clearing this doubt

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Sir I was talking about cashflow statements in the mcq questions where they show cash inflows and cash outflows in order to find the netcashflow

I wasn’t talking about the financial statement

Let’s say that the question already included depreciation and fixed overhead (rent that already was there in the business) for the costs

Then we remove only the depreciation in order to calculate cash outflows right?

On the otherhand for capital budgeting ( i.e is int the mtq questions)
I know surely that the depreciation is not relevant but the rent is also not relevant right?
We shouldn’t include it as relevant costs right?

I understand in capital budgeting both scenarios are essentially the same thing but for some reason mtqs seem to have a different way of handling the logic compared tot he mcq version of capital budgeting and I wanted to ask why is it like that

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Oh ok thank you very much sir

I understand it now

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ok so when we pay for labour we include idle time but when we try ti figure out usage we remive idle time right?

Im still not sure why we added the 20 because when we try to find efficiency ratios we include idle time but remove for variaces

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But in normal cashflow statements we include fixed costs right?( even the ones that does not change with a decision )

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