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Today's paper of costing final ca

Pranav Bhuta (Article) (34 Points)

09 November 2015

any comments on the paper of Advanced Management Accounts?

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29 Replies

CA Abhishek Goyal (Chartered Accountant) (504 Points)
Replied 09 November 2015

I really cant understand what ICAI wants from us....little bit tough nd lengthy...for me..

Manish Mehta (Manger) (115 Points)
Replied 09 November 2015

Any one who attempted 90% or more

RS (Capital Markets) (100 Points)
Replied 09 November 2015

Paper was damn simple actually..indeed pretty lengthy paper. I am sure most of the people would have attemmpted in the range of 80-85 marks only. I was able to attempt to only 78 marks. Most of the questions were short and pretty straight forward. However, in 1-2 problems, i felt its not clear as in what we need to provide as a solution.

For e.g. On pricing policy - It was whether to classsify as skimming or penetration or according to the nature of cost, i.e. cost plus mark up, variable cost etc.

Also in Q.7(D), I was not clear as in what needs to be provided as answer. They had given nature of cost and classification of cost as relevant / irrelevant. Not clear as in what they meant by "Conditions under which classification happens" .Anyone?

RS (Capital Markets) (100 Points)
Replied 09 November 2015

To clarify, I dont intent to discuss paper out here, this is just to understand the question which were not clear.

Manish Mehta (Manger) (115 Points)
Replied 09 November 2015

Yes you are absolutely correct I am also confused

(Guest)

Not that much tough.

Todays AMA paper was a purely conceptual based paper. All questions needs only basic knowledge about the concept.

1) Target costing, life cycle costing,

2) production budget,

3) selecting profitable alternative based on variable and fixed cost,

4) selection of customer order based on total cost incurred to fulfill the order, .

5) Assignment 4*4 matrix row and column knowledge, when zero comes in a row and ascertaining how minimum lines are drawn.

whatever asked was just checking of basic knowledge of concepts, nothing was tough and complecated. we have to apply concept while solving the question.

only Linear programming was bit complecated for me, it involves return and risk adjustment. i didi not attempted that question but It was quite managable and easy paper.

(Guest)

@ RS -

Q7.(b) pricing policy - only skimming and penetration policy based classification. 3 were skimming and 3rd was penetration

Reason - all situations were given on market launch of a product and not about production hence nature of cost is not relevant only market policy of price is relevant like skimming or penetration.

Q7(d) Situation in which the cost becomes relevant or irrelavant is to be answered.

example : unavoidable fixed cost are relevant in which situation? Ans is : Shut down point decision making condition. Sunk cost - future production situation. i am not sure about other answers.

Please answer in Q.7(a) in determining life cost do we need to take Research and development cost or its a sunk cost?

surbhi (Article) (45 Points)
Replied 09 November 2015

paper was easy as such..conceptual....could easily attempt full 100 marks paper

(Guest)

@ surbhi - have you attempted 100% ?

(Guest)

7 (b) (i) Skimming. (ii) Skimming (iii) Going rate or Penetration, if the company wants to be an aggresive industry player. (iii) Skimming. Here price will not come down from the segment pricing standards. Lamborghini will always cost 4 crore, even after 5 year of launch of Aventador Model.

(Guest)

2 (a) Do not go for JIT. Incremental Production cost was more than savings in inventory holding cost.

Generally, question are like that, the answer comes like..Yes, go for JIT. Hahaha....

I said No JIT. LOL

There were too many calculation involved in this question.

Anik sinha (Articles) (26 Points)
Replied 09 November 2015

Is crashing possible for 5 days, i got that only 4 days can be reduced by crashing?

(Guest)

Yes, crashing was possible for 5 days. CP duration was reduced to 15 days.

RS (Capital Markets) (100 Points)
Replied 09 November 2015

Yes, it was possible to crash by 5 days. Wondering if they would have not given the cost slope and all, how much additional time this problem would have taken to complete. :)