How did you find the exam?

[abcdqdxD]

In regards to the first question about the commencing entries, I thought that that question was quite odd. I believe that both stock and creditors were not meant to be control accounts for two reasons.

Firstly the question did not specify that the business used control accounts and secondly, there was not enough room to include two entries for the creditors. However that was my take on the question...

There was room. All businesses covered in Unit 3 operate with Control accounts for Stock, Debtors and Creditors. If not, I'm screwed.

[DiMennzzaa]

In regards to the first question about the commencing entries, I thought that that question was quite odd. I believe that both stock and creditors were not meant to be control accounts for two reasons.

Firstly the question did not specify that the business used control accounts and secondly, there was not enough room to include two entries for the creditors. However that was my take on the question...

There was room. All businesses covered in Unit 3 operate with Control accounts for Stock, Debtors and Creditors. If not, I'm screwed.

no way in hell that it isnt "control" you really think vcaa will do that? no way

[DiMennzzaa]

is it possible to get a low B+ on mid year and A+ for end of year and get above 37?

[Pa007]

In regards to the first question about the commencing entries, I thought that that question was quite odd. I believe that both stock and creditors were not meant to be control accounts for two reasons.

Firstly the question did not specify that the business used control accounts and secondly, there was not enough room to include two entries for the creditors. However that was my take on the question...

There was room. All businesses covered in Unit 3 operate with Control accounts for Stock, Debtors and Creditors. If not, I'm screwed.

I understand that all businesses in unit 3 have used control accounts, however in all previous exams they have boldly stated in a question that a business uses control accounts, for this question they didn't. It'll be very interesting to see the VCAA's expectation for that question. Overall this was the least of my worries. Overcoming the time constraints and analyzing the key information at the same time seemed to be the challenge this year.

[DiMennzzaa]

I think the problem with the whole timing issues is many of the new discuss questions were not questions where you could simply read once and than go "oh i know what that is, i just explain this" you had to think for a moment or two than scribble down an answer as fast as you could while trying to structure it in a logical manner. in previous exams i reckon that you could read a question once and write an answer straight away

[fmlexams]

question 1b, surely conservatism cAn be an accounting principle which backs the agreed value, as this value does not overstate the position of the business, i assumed the question was tipping us to give more reasons as to why agreed value is the better choice, i also see historical cost as the answer as well, thoughts?

I agree, can definitely be Conservatism. There isn't always a clear cut answer to theory questions. If you can justify it, and justify it well, it will definitely be accepted.

VCE Accounting has been moving towards open-ended discussion style questions, so I wouldn't be surprised if they rewarded students who provided a principle that was not the most correct, but effectively explained their reasoning.

yeah i see, well i think conservatism makes sense, also the question related to why businesses adopt the fifo method, this question was very broad "businesses", so i gave the reason as it may be physically impossible to label some stock items, and gave an example of petrol, thoughts?

The question was not why businesses use FIFO. The question was why is it necessary to allocate the cost of stock I believe (from memory). If not.. I lose 2-3 marks

ahhh, well what exactly was the question i'm a bit confused now because i remember the question stating something about aollocations of cost aswell, however my answer covers that, is stated it is physically impossible to label some items therefor you cannot allocate a cost to them so you simply use fifo?

[Truck]

question 1b, surely conservatism cAn be an accounting principle which backs the agreed value, as this value does not overstate the position of the business, i assumed the question was tipping us to give more reasons as to why agreed value is the better choice, i also see historical cost as the answer as well, thoughts?

I agree, can definitely be Conservatism. There isn't always a clear cut answer to theory questions. If you can justify it, and justify it well, it will definitely be accepted.

VCE Accounting has been moving towards open-ended discussion style questions, so I wouldn't be surprised if they rewarded students who provided a principle that was not the most correct, but effectively explained their reasoning.

yeah i see, well i think conservatism makes sense, also the question related to why businesses adopt the fifo method, this question was very broad "businesses", so i gave the reason as it may be physically impossible to label some stock items, and gave an example of petrol, thoughts?

The question was not why businesses use FIFO. The question was why is it necessary to allocate the cost of stock I believe (from memory). If not.. I lose 2-3 marks

ahhh, well what exactly was the question i'm a bit confused now because i remember the question stating something about aollocations of cost aswell, however my answer covers that, is stated it is physically impossible to label some items therefor you cannot allocate a cost to them so you simply use fifo?

The question was "The business uses the perpetual method of stock recording with the FIFO cost assignment method. Explain why it is necessary for businesses to use a cost assignment method."

I think the key part of the question here is Explain why it is necessary for businesses to use a cost assignment method. , and you'd have to talk about why we use cost assignment methods in the first place.

[abcdqdxD]

I think the problem with the whole timing issues is many of the new discuss questions were not questions where you could simply read once and than go "oh i know what that is, i just explain this" you had to think for a moment or two than scribble down an answer as fast as you could while trying to structure it in a logical manner. in previous exams i reckon that you could read a question once and write an answer straight away

Yeah, the 5 mark discuss question took me a good 6-7 minutes. I know the answer inside out and I started writing from the moment I read the question, yet still took so long..

[abcdqdxD]

is it possible to get a low B+ on mid year and A+ for end of year and get above 37?

I know a friend who got B+(mid year) A+ A+ and got 38

[BoredSatan]

question 1b, surely conservatism cAn be an accounting principle which backs the agreed value, as this value does not overstate the position of the business, i assumed the question was tipping us to give more reasons as to why agreed value is the better choice, i also see historical cost as the answer as well, thoughts?

I agree, can definitely be Conservatism. There isn't always a clear cut answer to theory questions. If you can justify it, and justify it well, it will definitely be accepted.

VCE Accounting has been moving towards open-ended discussion style questions, so I wouldn't be surprised if they rewarded students who provided a principle that was not the most correct, but effectively explained their reasoning.

yeah i see, well i think conservatism makes sense, also the question related to why businesses adopt the fifo method, this question was very broad "businesses", so i gave the reason as it may be physically impossible to label some stock items, and gave an example of petrol, thoughts?

The question was not why businesses use FIFO. The question was why is it necessary to allocate the cost of stock I believe (from memory). If not.. I lose 2-3 marks

ahhh, well what exactly was the question i'm a bit confused now because i remember the question stating something about aollocations of cost aswell, however my answer covers that, is stated it is physically impossible to label some items therefor you cannot allocate a cost to them so you simply use fifo?

The question was "The business uses the perpetual method of stock recording with the FIFO cost assignment method. Explain why it is necessary for businesses to use a cost assignment method."

I think the key part of the question here is Explain why it is necessary for businesses to use a cost assignment method. , and you'd have to talk about why we use cost assignment methods in the first place.

The answer is pretty much just for the ease of accounting..
It would be physically impossible or at least very hard to track every stock item that enters and leaves the business. Thus FIFO is used to assist the business' accountants in recording and reporting movements of stock by ASSUMING that the first stock in the first stock that leaves the business

[fmlexams]

question 1b, surely conservatism cAn be an accounting principle which backs the agreed value, as this value does not overstate the position of the business, i assumed the question was tipping us to give more reasons as to why agreed value is the better choice, i also see historical cost as the answer as well, thoughts?

I agree, can definitely be Conservatism. There isn't always a clear cut answer to theory questions. If you can justify it, and justify it well, it will definitely be accepted.

VCE Accounting has been moving towards open-ended discussion style questions, so I wouldn't be surprised if they rewarded students who provided a principle that was not the most correct, but effectively explained their reasoning.

yeah i see, well i think conservatism makes sense, also the question related to why businesses adopt the fifo method, this question was very broad "businesses", so i gave the reason as it may be physically impossible to label some stock items, and gave an example of petrol, thoughts?

The question was not why businesses use FIFO. The question was why is it necessary to allocate the cost of stock I believe (from memory). If not.. I lose 2-3 marks

ahhh, well what exactly was the question i'm a bit confused now because i remember the question stating something about aollocations of cost aswell, however my answer covers that, is stated it is physically impossible to label some items therefor you cannot allocate a cost to them so you simply use fifo?

The question was "The business uses the perpetual method of stock recording with the FIFO cost assignment method. Explain why it is necessary for businesses to use a cost assignment method."

I think the key part of the question here is Explain why it is necessary for businesses to use a cost assignment method. , and you'd have to talk about why we use cost assignment methods in the first place.

in that case i think thats what i did hopefully.

[abcdqdxD]

Isn't the question why it is necessary to have a cost assignment method as opposed to explaining FIFO?

[fmlexams]

Isn't the question why it is necessary to have a cost assignment method as opposed to explaining FIFO?

if by that you mean we don't explain what fifo is but explain examples as too why businesses use it. i agree.

[BoredSatan]

Isn't the question why it is necessary to have a cost assignment method as opposed to explaining FIFO?

Yes why is it necessary: because it allows for ease of reporting..

You could also add what FIFO is.. that wouldnt hurt

[abcdqdxD]

Isn't the question why it is necessary to have a cost assignment method as opposed to explaining FIFO?

Yes why is it necessary: because it allows for ease of reporting..

You could also add what FIFO is.. that wouldnt hurt

I said something about cost of sales, etc.. would that be correct?  So you can track the value of outflows of stock?