CIMA Operational case study May 2015 - Possible scenarios


The examiner reports for the March exams have been published. My advice is to read them. There are 12 sides for 5 exams so that isn't excessive. 

Two key things to mention here:
1. Technical skills were disappointing
2. Applying P1 and F1 knowledge was weak

On that basis try to consider this possible scenario.

Jim Batton decides to open a new factory. He chooses to finance it principally through borrowing. It takes 9 months to build the factory so that it is ready to use. He starts to use the
factory two months later.
The loan he took was for 2 years. He incurred the following costs: 25 million building costs, 9 million fixtures and fittings, 1 million legal costs and the interest of 10% per year
of 20 million borrowed for 2 years.

Which costs should be included in the cost of the factory that will reported on the statement of financial position (no depreciation to be charged)?


www.youtube.com/watch?v=XMdrPxD3I_Y

Cannondale Bicycles Assembly Line in Bedford Pennsylvania
If the OCS examiner suggested adopting some of the mechanisation in the Batton production line are you prepared for a response?

Also Trek - carbon frame bikes
www.youtube.com/watch?v=QrtpNQLxqfg



sandy.hood@astranti.com

Courtesy - Astranti



For more resources visit here - http://www.exploreaccountancy.com/p/operational-case-study-exam-ocs_5.html







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