ACCA F5 Full Course Part C Decision making techniques | #acca #f5 #cma #management
GET ACCESS TO MORE VIDEOS LIKE THIS. Step 1: Subscribe to this channel / @financeskul Step 2: Click the link below: Link: https://www.patreon.com/posts/acca-f9... This video covers section C - Decision-making techniques of ACCA’s F5 – Performance Management including: 1. Relevant cost analysis 2. Cost volume profit analysis 3. Limiting factors 4. Pricing decisions 5. Make-or-buy and other short-term decisions 6. Dealing with risk and uncertainty in decision-making Download F5 2022 - 2023 Syllabus here: https://www.accaglobal.com/in/en/stud... _____________________________________________________________________________________ On successful completion of this video, you will be able to: 1. Relevant cost analysis a) Explain the concept of relevant costing. b) Identify and calculate relevant costs for a specific decision situations from given data. c) Explain and apply the concept of opportunity costs. 2. Cost volume profit analysis a) Explain the nature of CVP analysis. b) Calculate and interpret the break-even point and margin of safety c) Calculate the contribution to sales ratio, in single and multi-product situations, and demonstrate an understanding of its use. d) Calculate target profit or revenue in single and multi-product situations, and demonstrate an understanding of its use. e) Interpret break-even charts and profit volume charts and interpret the information contained within each, including multi-product situations. f) Discuss the limitations of CVP analysis for planning and decision making. 3. Limiting factors a) Identify limiting factors in a scarce resource situation and select an appropriate technique. b) Determine the optimal production plan where an organization is restricted by a single limiting factor, including within the context of make-or-buy decisions. c) Formulate and solve multiple scarce resource problems using both linear programming graphs and using simultaneous equations as appropriate. d) Explain and calculate shadow prices (dual prices) and discuss their implications on decision-making and performance management. e) Calculate slack and explain the implications of the existence of slack for decision-making and performance management. 4. Pricing decisions a) Explain the factors that influence the pricing of a product or service. b) Calculate and explain the price elasticity of demand. c) Derive and manipulate a straight line demand equation. Derive an equation for the total cost function (including volume based discounts). d) Calculate the optimum selling price and quantity for an organization, equating marginal cost and marginal revenue. e) Evaluate a decision to increase production and sales levels, considering incremental costs, incremental revenues and other factors. f) Determine prices and output levels for profit maximisation using the demand based approach to pricing (both tabular and algebraic methods). g) Explain different price strategies. h) Calculate a price from a given strategy using cost-plus and relevant cost. 5. Make-or-buy and other short-term decisions a) Explain the issues surrounding make vs. buy and outsourcing decisions. b) Calculate and compare “make” costs with “buy-in” costs. c) Compare in-house costs and outsource costs of completing tasks and consider other issues surrounding this decision. d) Apply relevant costing principles in situations involving shut down, one-off contracts and the further processing of joint products. 6. Make-or-buy and other short-term decisions a) Suggest research techniques to reduce uncertainty e.g. focus groups, market research. b) Explain the use of simulation, expected values and sensitivity. c) Apply expected values and sensitivity to decision-making problems. d) Apply the techniques of maximax, maximin, and minimax regret to decision-making problems including the production of profit tables. e) Interpret a decision tree and use it to solve a multi-stage decision problem. f) Calculate the value of perfect and imperfect information. Video chapters 00:00 – Intro 01:04 – Relevant cost analysis 15:38 – Cost volume profit analysis 29:48 – Limiting Factor 41:12 – Linear programming 50:23 – Shadow Price 59:25 – Pricing decisions 01:24:36 – Decision Making Techniques 01:36:46 – Risk & Uncertainty 01:44:50 – Payoff Tables 01:59:39 – Decision Trees 02:04:31 – Sensitivity Analysis 02:15:30 – End Subscribe to this channel for more free resources / @financeskul _____________________________________________________________________________________ Transcript: Tags: #acca course #acca f5 #acca f6 #acca f7 #acca f8 #acca f9 #acca SBL #acca SBR #acca APM #acca AFM #acca ATX #acca AAA #cima course #cma exam #
