Typical Mistakes Students Make!

[Tammi]

CVP analysis:

There were some questions where while controlling time on each question I could not find clue quickly, couldn't guess which figures to use.
The questions were based on 2 formulae:

Breakeven point (units) = Fixed costs/ contribution per unit
Margin of safety (units) = Budgeted sales - breakeven point sales

So if the question asked, for example, about budgeted sales, I could not calculate it by using one formula because breakeven point figure was also missing, so I had to use both formulae to find budgeted sales . I don't think that it is difficult to calculate, very easy but one should guess how to find that figure.

[Tammi]

I have already completed F2 questions and wanted just to post here some interesting moments I found in questions, nothing difficult, just one should pay attention to them.

Standard costing:

Overhead expenditure variance:
This is the sum of fixed overhead expenditure variance and variable overhead expenditure variance

I am just going to practice past exam papers, if I find anything interesting, I'll post it here.

[veditahjps]

hi nancy...am geting confused....wats the corect ans to the above ques??????????? is it 2500 or 1500

[Tammi]

hi nancy...am geting confused....wats the corect ans to the above ques??????????? is it 2500 or 1500

Read the questions carefully, there are 2 different situations, 2 different questions

[Nancy]

the relevant cost is calculated as follows

the realisable value of $2,000 + the future profit forgone $500 = $2,500

[Joshlogan]

I really agree with you Tammi. You seem very focused. Good work keep it up. I will look to you for help.

[guidingstar]

Thanks you so much. i've catched these mistakes several times ago.