Last Minute Help - ACCG201 (1 Viewer)

[redruM]

umm...do you remember what the question was? coz i remember thinking the same thing but then i saw where it was different or something strange.

yeah part b ii) asked about goal congruence, i ended up answering that anyway but i still found out the profit and loss for assembl and whole company.

oh ok lol.

i think it was a general question on goal congruence wasnt it?

 

[Smokin'Squirrel]

I understrand what Target Costing is... it's not that difficult. It's just that i don't think i read the question accurately enough. i.e. I did a profit margin of 25% on the Selling Price, rather than a 25% markup on the product and delivery costs... meh.

Also, part b)ii) of the TP question required you to say that the company would have an incremental contribution margin of $65 per unit (Selling Price = $465 - V.C. in Fabrication Department = $300 - V.C. in Assembly department = $100). I think an answer in line of what goal gongruence is and why it is necessary was also important.

I hope for your sake that they give you marks for the part where you said 'see previous answer'

 

[redruM]

I understrand what Target Costing is... it's not that difficult. It's just that i don't think i read the question accurately enough. i.e. I did a profit margin of 25% on the Selling Price, rather than a 25% markup on the product and delivery costs... meh.

they are the same thing. you can relate your profit margin to both your selling price and your prod and del cost.

 

[Smokin'Squirrel]

I don't think that a 25% margin on the selling price and a 25% markup are the same thing.

e.g. a 10% margin on a selling price of $200 would mean that target cost is $180. Alternatively, a 10% markup on $180 would mean that the selling price is $198. The margin is a fixed proportion of sales with Target cost the variable, where as the markup is not a fixed amount as it is proportional to the target cost.

In the exam, i think i jumped the gun and did 25% profit margin on the selling price of $400 = $100. Therefore, the TC = $300. However, if what u say is correct, then i should have done a 25% margin on the TC which would produce the $320 figure. Although, my problem then with that figure is that you are not actually making a 25% margin (on sales).

It doesn't matter too much now. Results will be out in a month and we all have 3 months of summer ahead of us. Have a good break.

 

[redruM]

i meant to say that profit margin depends on your profit (selling price - cost). so from that point of view, it relates to both.

 

[cr in accg]

I hope for your sake that they give you marks for the part where you said 'see previous answer'[/QUOTE]
ofcourse they would. why wouldnt they

 

[Smokin'Squirrel]

Let me clarrify... what i meant was I hope that your answer for both part i) and ii) is sufficiently contained in part i), so that when u say 'refer to previous answer' they give you marks for both answers.

They made it clear that each question wasn't going to be marked beyond the space provided. Therefore, they may accept it or they may not. There was no malice intended, merely an observation of potential outcomes.

 

[cr in accg]

Let me clarrify... what i meant was I hope that your answer for both part i) and ii) is sufficiently contained in part i), so that when u say 'refer to previous answer' they give you marks for both answers.

They made it clear that each question wasn't going to be marked beyond the space provided. Therefore, they may accept it or they may not. There was no malice intended, merely an observation of potential outcomes.

they said that because they were afraid people would answer their questions on the separate booklet provided that wasnt going to be marked. go figure