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hello my name's john on such expecially span
and here today to talk to you about
at formats management a cc a at five
we're going to be lifting acts and howl at the stimulus area section beekeeping
examined decision making techniques specifically leaking out part one
of relevant costing
in the session then we'll be looking at the knowledge that you required to
attend to this section of the examination
we should also be having alot about the best approach to take to these type of
questions
and then we're going to have a look at how this would have worked
images send the two thousand an eleven exam
leaking at question one
and putting out some of the colleagues from the examiner's report which could
help you to achieve a better school
if this topic what speaker famines
simple it's kind of knowledge down and how could this be tested
medicine cost analysis that has split into three addy is
every case be off to have a lick at the concept of relevant costing
this is where the knowledge comes into play and what relevant costing is
actually all about
you could also be alston identifying calculate development cost for specific
situation
this is very much application and taking the information is being provided in us
in on it
and making sure that you can sit through it
using that knowledge about what about the cost actually is
and you might also have to explain the concept of opportunity cost
it could link and then with the other parts of the syllabus here
and they could actually be some application
through some kind of make will bite
and through outsourcing three feather processing of joint costs or it could be
linked into your transfer pricing
or was it was the december m_f_n_
became at of one of contacts
and how much should be charged for this
what do you think that is the cost and is essential that we understand from the
acknowledge behind the concept
before we actually dot
and what we need to be looking at that
is making sure that we've got the knowledge that we can apply today
situations listen on a day
givens left in the exam
and beneath the helmet then clinton the two thousand lesson to send the report
that many students that yield to understands what benefit costing
actually is all about
developing costing then is a feature incremental cashman
silly looking down at a map that expenditure which is gains actually
attack
in the future as opposed to a cost that is historical suncorp something that
we've already committed to
and agreed to
it should be incremental set should go out at the results but the decision
to undertakes to work
it might be that we have to pay eqca timeslot stuff above and beyond sperry
ditional wages
or it might be that we have to create an additional pathan
or by some additional materials but whatever it is it should be money that
we weren't already planning to spend
it also needs to be a cash flag said below that is accountants we often used
to be thinking about
accounting estimate fact appreciation and profit
these are not cash al fayed's
what we're looking at that is whether or not this would result
in basically extra money being pace
out of the bank account
simply show on the bank statement
that's what's going to make it cashman
how do we preach the questions then
well we might need to make sure that that we blackout me enough time that
we've got
when you can at one point eight minutes highmark
and use it break that sends the sup requirements with wealth and power and
copy as well
when leaking exam questions then we want to reach the introduction andy get a
feel for what the company is
get yourself inge the mindset a similar rediculous king at
patel you can reach ordered the detail
because they point to the mainland it doesn't matter what this company is up
to a detail because you don't know what you're going to be on city with that
information so once you get the introduction retail climate cathy
highlights how any key west
and make sure you pull out
or if the requirements if you're also conclusion
make sure you highlight backed out as well
so that you take to get
t_v_ gift that conclusion at the and if your answer
also ahead
what we know we've got to do it we can now get back to this scenario so we can
get through this scenario in detail
meeting information carefully
and making notes
this is something that you could teacher in the readings hein
on the question like they have to have a look at these how alone anti-semite
thousand lessons question shortly
once you have to be a nice then if you need to see some kind of cool statement
you need to set up a pro forma so you can stop the e_c_ numbness in fast
and make sure that the ends the state the minimum cost
or give the completion
to round off your upset
following the detail in any way king's afterwards
making sure that your answers professionally presented an do you think
the market fallen
public that at question one
from at its end eighty thousand eleven pay cut
the telephone company
here you can see then that we've got the requirement
for part eddie
and you have had almost twenty five minutes to do this
it wouldn't have been a particularly time pressures question
as this topic does intend to be time passionate
so it might be that you've been able to save yourself some time to use on
chicken aspects
or more time-consuming aspects of your paper
this question in my ninety isn't extend one for approaching during that meeting
time because you can happen all of the trusted
before the examination starts
readies rights uh...
and then give you more times work on the other hand it's off the paper
so we have to prepare a cough statement requirement was very clear that that's
what we needed to do
so it wouldn't it be insufficient teaches kids an amount
and this whole cheese and oven costing principal says that they came to the
scary if the syllabus needed
and we have to show you the minimum cost
so we've got two things to do a saved file
prepared a statement
and pgs the minimum cost
then wealth to make detailed nights
showing how he's costs have been arrived on a
and explaining why they've been included or expiry date
the examining here is being very very generous in the wedding if the question
the weights detailed explaining him in capital letters so drawing out their
importance to you and hopefully you love uh... appreciated that
that is going to be insufficient to say it better than will not management in
the next because last week details explanations very very clearly
it would have been insufficient
seek just even numbers here if utac's kunal excluded the discussion
that would've been a detection and if you're out there
because eight out of three fourteen miles deming
what the discussion
with the explanation of why you've done something
so you know why you're doing a otherwise he would meeting in the first place
all you've got steve hayes communicate to the marca that you know wine it
wasn't just unlucky destiny something else
we didn't need out because he didn't have a clear what to do with it
is very clear that you should also provide the explanation
two things that you explain you can send as a set of very generous requirement in
the way with wedges
uh... and unfortunately in the exam this report
it didn't seem to be the stevens accepted takes kids carry tennessee
the explanation and must say
morepen place rather than or not relevant
the remember to say why something if management
public that at the requirement and to be a scenario that we were given to
telephone company
and feet and how we came back to sleep annotated it's during the reading time
to give us those points ready she writes up once the examination actually started
and make good progress during these first few minutes with the fam
fail we told them it will head for the future business
that's more relevant the puppies they were comments that one in a minute
but let's hope that in part one
at the summit has already happened says that men have or deep into this it
if there's something is in the past
it's a fun costs will not go into the cause of that money
if this doesn't go head
say we need to make it clear in our explanation then
that we'd explains it best because it's something
which has happened in the pa spend way beaver covers even if we thought unable
to win the wet
the next requirement then at the next next and was quite detailed
and it was here then
that uh... many stevens i think probably thought oped i had a a little bit about
love contribution
and i need to make sure i'm pleased that
you needed to meet all the way three bags
to actually appreciates
that's uh... it wasn't that this work was not going to go ahead is just that
it was going to be delayed
so we're making here that's apt and
the penalty for today
rather than looks contribution
it's very important hair that you've read the information detailed
and make sure that you think about the in the context at this particular
question
bronfman trying to then
what happens everytime
and the technical adviser that is a full capacity
and fed is going to have to work if it's alright still needs to be calculation
for that period of time
and explain this because we're going to have to pay them over in about ten
additional wages
is made full band when we're looking at independent contracts etc
began in the examine support it was highlighted hair that it was more city
with students ability skill to be tinting calmly and the exam
god that then
to do with technical knowledge
effect very clearly then
that the contracts at no employees by telephone company
and will be paid directly by cash
this then means that we don't need to include it
that we'd even then the need to include the explanation as to why we have
excluded it
we told them that the constrain i is going to get to the company and deliver
this training
it guaranteed base salary then fifteen hundred pounds
which is a committed cost
so we're not going to sign a portion popat siri just weekends he hang on
china
whether he fact said
in the office doing nothing
whether he's out saying this training
the anchorman calms down
from the facts that we are paying him from commission
these days that he spends client sites
and it's that's amount that we need to make sure we include but we need to give
the justification for nothing pleading
and he is the fifteen hundred
now how does that stand
we've given information about the yukon call fifties
uh... also
the historical cost
it was a great disappointment and lots of seasons actually
chinese t_v_'s the historical cost here
it's not sold we not collagen is never very likely
the conveying someone up and ask for a refund
because he's decided not to do you think
that we pay for it completely irrelevant
is what you don't have to pay to replace it
for something which has been continually keys
the computerized system and it's like to you
also called seven problems
we think five-day stand you need to consider what your options saw and then
think about the costs that that is different options
undoubtedly we have the option to go out
and by at brown's need for exchange the ten thousand eight hundred dollars
but allstate and
we have this option of modifying the one that we've already got
the cost and the one that we've got is irrelevant
and is the facts that week or not
we will be unable to sell it for three thousand dollars if we decide to use it
waveform carrying day scrap crises
they would have come into our business
if we decide to use it with full carried map so passport is the kashmiri is
irrelevant
says the three thousand plus the modification costs and you can see that
that actually comes in manila
newt need to explain how you can stage at the different options
why you try anything
the three thousand rougher than that current market price
finally then we need to think about the anthony tearing of coming to the cable
companies into the system
and we told it's used frequently visits very technical
requirement for any talk about it and costing
it's frequently used
the best for its the replacement cost
when you see what's like frequently d dets replacement cost what's there
should be treated
and then you just need to meet the detail to make sure their own any asi
computations
or and
interesting points in this mail me that you need to to to actually can seat a
and then finally we get into the information
and which i think if that's trying get you to try and portion of the costs but
it may have been needed
in part nine
al im going free then
and mainstays narrates wanting that is setting up the price format which will
look something like this
we've just got one of two different items listed down
it makes good sense to bite than in the same or zach which they appear in the
question pay cut
you probably want to leave a space between each night
the if you've missed something out you can any faith love in a life of a
compliance
and involvement and having team
and sort of time slot into a very small gap
benefits for help with presentation view exam
and then you can reference it to the detailed nights afterwards
saying he had done
night one would be about the demonstration and lunch
and i would be out some dry underneath
that this was based on cost because the expenditure had or is he attacked and he
wouldn't be re kabhi claims if the way one ought to be wife the contacts not
one
and you can tight-lip or not
and give the value of that
at the cost and then you can explain that this is the minimum price of ritual
hopefully then when your ethics comes to be marks
somebody with a health plans diamond market yet
feed you've got the title right
and awards even mops the calculation
and then re-trial nights
and if you do not feel explanations corinne you hopefully
uh... fourteen all that
unique place to that
and marks available
what you want to make sure that if it is well restaurants they if you have made
an error on one if the only sends
and it's been easy for someone's understands
and you lose the minimum number of marks
uh... possible
a puppy bag pistols and also going to be discussed sent them a name all
calculations to undertake air
reinforcing then that this exam is
and at that discussion
as much as it is about numbers
explain about the costing principles that you can't use it
and all say what the implications uh... of using these
the implications of the minimum price
the uh... explaining the relevant costing principles then was the one
about taking that knowledge from one at the earliest sides about future
incremental cashman
and explaining what that is all about
the implications then
a much more applications scales
where you thinking about what it means here
well we've got some amount then which is a minimum cost
but it doesn't include any mark up it is against the eighteenth company
making any profits
they might need to act in an element of that
there are also a fixed costs which are not incremental which is not being
concedes that
and you can also talk about some of the commercial aspects of best they thinking
about the fact that he may be setting a precedent friend overpriced in the
future
you wouldn't have needed to include all the fees points in order to school of
the six marks you just need to make sure that you use the marking guide is the
indication
and how much to write
say it will be looking at six months then so we need to make six one
explained points
when you're making a point remember to make the point explain it and then apply
it back to the scenario
say for example in this question aqui was then that it might be edit it leads
an expectation appeal and prices in the future ordinary prices in the future
then we need to explain that this might be difficult when that come and
tendering for future welcoming needs cover costs and ordered that cost and to
make a profit and application which i was here that the hunt for inside it
winning future contracts financial is very valid and hair because they want to
make sure then but the at price that week quiet will give us and access to
this country it'll say sustainable intensive getting future work from them
if you'd like to and more practiced and on this area you can have a litte acts
and december two thousand and nine question five state clean and nineteen
two thousand nine bits and pieces question
these then on similar types of questions so in bits and pieces then you're making
at and the incremental costs that is the incremental benefit sunday trading
and in state team and the decision is whether or not c_e_o_ as cease
production now or in twelve months time
that's not a standout always going to be different
that the fails then
and that the knowledge again to be very very similar
these questions then and states ominous reports can be downloaded from the
a_t_c_ a website and good luck with your exam and and remember to practice lots
of questions before the exam so that you get into the mindset of the exam and for
the past papers unprepared for what could come your way in you like them