Make-or-buy problems SIMPLIFIED | ACCA PM / F5 | Question Robber | Decision making

🚀 Get all my PM Videos here: accaexamhelp.com 🚀 How to solve a Make or Buy question: here's the spreadsheet exam technique for question Robber Part A. We'll cover the topic from decision making, Make-or-Buy, found in the June 2012 PM exam. In this video I'll show you lots of CBE spreadsheet exam technique and tips to help you pass your CBE PM exam. After you watch this video Make or buy will be simplified.
Here's the link to question Robber: drive.google.com/file/d/1U36H...
Get help, exam technique and tips for passing the ACCA PM exam.
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Steve Willis ACCA
www.stevewillistraining.com
How to pass ACCA PM
Make or buy help
#acca #accaexam #accaexams
Exams For more on ACCA PM Make-or-Buy, check out Open Tuition • ACCA F5 Make or Buy de...
Find many other helpful videos on James Wright ACCA / jameswrightacca

[@BilalAhmed-fi3nj]

Steve sir your'e the best. ❤.

[@SteveWillisACCA]

Glad the video helped! Good luck!

[@Amanda-ru3jy]

i wish i meet you earlier sir!! but its too late. Thank you for ur youtube videos it helps me a lot!! wish me luck for dec exam!!

[@SteveWillisACCA]

Good luck :)

[@MaxX-ou2fw]

hey, I just wanted to say thank you because your lectures really helped me in my preparation and it helped me clear pm in the December session. I felt that the subject really connected and would you recommend I take up APM as a professional paper because I don't really feel sure about financial management.

[@SteveWillisACCA]

well done on the pass! AFM is heavy on formulas and calculations. APM is 20% calculations and 80% analysis. So if you like that better APM is for you.

[@MaxX-ou2fw]

@@SteveWillisACCA thank you for your feedback

[@BilalAhmed-fi3nj]

Hi steve. I have a doubt. I have learned that in the make or buy decision making process, we have to compare the variable cost of production/unit in-house vs the outside external price. Why have you considered the whole values($) and not per unit? Why are you considering the fixed costs too in the answer 😢

[@SteveWillisACCA]

Hello! The information is given as totals for 80,000 units, so at the end we divide by 80,000 to get to the unit level. The fixed costs, like the machine and the insurance, we assume those are product specific fixed costs--if we stop making the units, we stop paying for maintenance on the machine (the fixed cost) or the insurance on that inventory or those machines (the other fixed cost). Make sense?

[@BilalAhmed-fi3nj]

@@SteveWillisACCA thank you steve sir. Now i get it ❤️

[@sucdisaid3447]

Hey, I have an Issue for Machine cost, why are we skipping fixed cost portion of $4000 and $6000? as result Machine is the operating tool? Please clarify.??

[@SteveWillisACCA]

Hi there, they are in the spreadsheet in row 10.

[@jadensparrow7663]

Great explanation, one doubt, if depreciation is non cash expense then why we are including it ? because insurance is included with it ?

[@SteveWillisACCA]

Hi there! That is ambiguous as you correctly flagged. I only include it because it also says "insurance." If you get something like this on the exam, make a note in the cell next to the working "I assume the insurance part is a cash flow".

[@jadensparrow7663]

@@SteveWillisACCA thank you very much

[@SteveWillisACCA]

You're welcome :)

[@MinimalistExplainer]

Hello,Is your F5 premium videos free now ? If not, whats the procedure to buy it

[@SteveWillisACCA]

Hi there--my premium video site is www.accaexamhelp.com Please have a look :)

[@divyadinesh5785]

Sir I have a doubt, why did you add fixed cost relating with machine cost? It's semi variable so fixed and variable are included

[@SteveWillisACCA]

Hi there, the semi-variable machine costs are separated into a fixed part, given in the question and then the variable part, based on the set-ups. So there are two lines for that. Does that make sense?

[@divyadinesh5785]

@@SteveWillisACCA 👍🏻

[@khizar5217]

I just had problem with one thing. How is depriciation a relevant cost. It's not a cash flow. Even if it's specific depreciation.

[@SteveWillisACCA]

This is an ambiguity in the question, as they lump depreciation with insurance in the same line. Insurance is a cash flow, depreciation isn't, as you say. So if you put 0 in that line and said, "Dpn is not a cash flow so I exclude this cost" you'd get the credit.

[@khizar5217]

@@SteveWillisACCA ok thanks. I also searched a lot and came to know that if depreciation is specific like if a specific product reduces the value of a machine then it can be a relevant cost. And your technique is very effective and to the point.

[@leewebster2639]

💪 𝐩𝐫𝐨𝐦𝐨𝐬𝐦