Wow - if I ever looked at this question I wouldnt know how to answer it at all. But the way you broke it down and simplified it! Truly shocked thankyou so much !
@@SteveWillisACCA thank you for replying! Just a quick question, will this method apply for comparative statements as well? (As in for comparing 2 contracts) If yes, then can we just club the "description column" for both contracts?
@@SteveWillisACCA Yeah sure! So the question gave us Cost Estimates (for 2 contracts) along with notes. The requirements were: 1. Present comparative statements to show the net benefit to the company of undertaking the more advantageous of the two contracts. ; 2. Explain why you have included, or not, each of the items given in the data in your comparative financial statements.
@@aayushiarora2366 If the question asks you to explain why you've included or excluded things, then it's easist to add a column so your comments are lined up nicely with your workings.
Point 9 is just a distractor--it's related to the info above about the fixed costs. So the incorrect answer would be to spread the salaries over the days/weeks. If that wasn't there it would be a clue that you don't need to deal with the fixed costs.
That is the lost revenue -- the opportunity cost -- of not selling it and fixing it instead. The decision to modify means I lose 3,000 in revenue. Make sense?
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Really useful video how to tackle such complex exam question in a simple way. Thank you so much for preparing this material!
Glad it was helpful!
Wow - if I ever looked at this question I wouldnt know how to answer it at all. But the way you broke it down and simplified it! Truly shocked thankyou so much !
Glad it was helpful!
Thank you soo much sir for letting us know about how to present the answer perfectly 💯💯
You are welcome :)
Thank you Mr. Steve for making the video and helping to us. That really makes us confident to ourselves and never give up for exam preparation!!
You are very welcome
Thank you for showing techniques on how to approach these types of questions.
Glad it was helpful!
Beautifully explained, Thank you Steve very elegant and clear.
Glad it helped!
thank you so much, Please can you make a video solving the Rotech group June 2014 question(transfer pricing), really struggling with it.
I'll put this on the list for the future.
Thank you so much for this content! A really simple, easy and neat way to solve this problem. You are a life saver! Thanks a ton!
Glad it helped!
@@SteveWillisACCA thank you for replying! Just a quick question, will this method apply for comparative statements as well? (As in for comparing 2 contracts) If yes, then can we just club the "description column" for both contracts?
Can you send me an example of this type of question? The column for discussion is only there because it was a requirement in the question.
@@SteveWillisACCA Yeah sure! So the question gave us Cost Estimates (for 2 contracts) along with notes. The requirements were: 1. Present comparative statements to show the net benefit to the company of undertaking the more advantageous of the two contracts. ; 2. Explain why you have included, or not, each of the items given in the data in your comparative financial statements.
@@aayushiarora2366 If the question asks you to explain why you've included or excluded things, then it's easist to add a column so your comments are lined up nicely with your workings.
Really great technique. Thanks so much sir. But what about point 9 the last statement?
Point 9 is just a distractor--it's related to the info above about the fixed costs. So the incorrect answer would be to spread the salaries over the days/weeks. If that wasn't there it would be a clue that you don't need to deal with the fixed costs.
Thank you so much for this video. I really found it helpful in my question practise.
Glad it was helpful!
How did you get the 1.5 in Tech.Advisor?..8*40*1.5
that is the overtime. Time and a half.
thanks sir steve so helpfull
Happy to help
Perfect
Thanks
Hello, I can't understand why $3000 was used to calculate the modify cost for Swipe.?
That is the lost revenue -- the opportunity cost -- of not selling it and fixing it instead. The decision to modify means I lose 3,000 in revenue. Make sense?
Keep up
Will do!