[James124]

Alright tutor. Thank you

[James124]

Tutor I got 63 in FR. It was due to several reasons which do not doubt my knowledge like giving in 1.5 months and unable to type with that speed due to lack of practise on computer.
I have good concepts of FR.
And please tell that should I use the current lectures or will you give a revision with notes next week?

[James124]

Tutor in chapter two, it is clearly said that transferor should be non-tax payer but my friend gave me an example in which tax saving can be done when transferor is a basic rate tax payer. Can you tell me that is it possible of transferable amount of Personal allowance when the transferor is tax payer?
E.g. two partners: James has income of 11500 and Katherine has income of 20000. James has unused personal allowance of 1070 but he can still transfer allowance of 1260 and pay tax on 190 which will be 20% so 38. Is this possible? Because it notes it clearly says tranferor (James in Example) should be non-tax payer but here it is tax payer.

[James124]

Can you explain what exactly you mean by 10% of allowance?

[James124]

Tutor, I discussed this lecture with my friend who has given exam in past. She said that it is not necessary for transferor to give non-tax payer. They might transfer allowance for tax saving.

[James124]

Yes

[James124]

I won’t lie to you. Actually it was an exam question and it contains 10 marks. I said that organisation will sell internally first and gave the same explanation what I said it here. Can you guess if any marks I will get or I will be getting NIL?

[James124]

If B is selling externally so what is need to set transfer price for those units. B should only set $30 for the units he want to sell internally.

[James124]

I think the answer is that division B should sell to internal first and then to external for profit maximisation.
Organisation will have to buy for $50 and will earn $24 on each unit if sold externally and bought externally. Net loss of $26.
If organisation will first satisfy internal demand so they would have lost contribution of $24 but saved $50.
Am I right?

[James124]

It is term used in FR. Separate business unit or something like that.

[James124]

Hello tutor, I don’t know the tabulor approach enough. I have studied but do not have much command so open to many errors. Will examiner allow both methods or restrict to use any one?

[James124]

Its operating gearing is 950%, indicating that if sales volume fell by 10%, then its profit before interest and tax would fall by 95% (that is 950% or 9·5 times more)
This is exact… She missed the word volume.
Flag and Budget Co, Part A, september/december 21

[James124]

According to economist approach, at Profit maximisation point, Marginal revenue and Marginal cost are equal.
Economist write Marginal Revenue as “a-2bq” and Marginal cost as sum of variable production cost.
I hope you are able to calculate a and b by the figures that at 8000 the sales are zero and $150 reduction will increase 1 unit of Product. Hence, a = 8000 and b= 150.
Marginal cost is variable cost which it says that 4000 per unit till 10 units and 400 increase on each unit compared to preceding unit if higher than 10. Therefore, MC= 4000 + 400 (q-10).
Another method is that calculate MR and MC on all options. When they get equal or closest will be the answer. It is time taking but an authentic way.

However, wait for tutor to reply because my MC equation turns false if units are less than 10.

[James124]

I used the equation used for Profit maximisation MC=MR
A= 8000
B= 150
MR = a-2bq
MC = 4000+400(q-10)

I am not sure…. Tutor will tell best. Wait for him to reply.

[James124]

Answer is 11 units?
Tutor I am not intruding the tutor forms. I am just asking the answer as I also liked this question and attempted so get 11 units.

[James124]

Tutor, can you help me understanding mathematically. I really understood your answer but if you help me in this it will clear my concepts further.

Market size variance is comparing sales volume planning variance which compares revised and original budget sales volume.
Revised volume will be higher from original budget i.e. 20000.
This is like to be favorable market size variance.
Market share variance is sales volume operational variance which compares revised and actual sales. We are unsure about which will be higher it can be either revised or actual sales.

[James124]

I am sorry to intruded but the Kaplan has not mentioned closing inventory as part of SoFP. They use in calculation to find Current ratio.

[James124]

Thank you 🙂

[James124]

Thank you!

[James124]

Right tutor. Thanks!

[James124]

This was ACCA official past paper release that is why I posted the link.
Sorry.

[James124]

Thank you.
Yes, you have answered my question completely.

[James124]

Thank you tutor.
Amazing

[James124]

Yes ofcourse. I always ask my each and every query at Opentuitions. I believe you more than my local tutor.

[James124]

That is perfect but if something important you want to add so most welcome.

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