Business Studies HSC Exam 2017

[snowflakes]

Hi, I am new here! 
I got A for this question because COGS is not part of expenses in the expense ratio calculation despite saying total expenses- here the total is to cover the different types of expenses like operating expenses.(I'm almost 100% sure), so using your exmaple:
Sales: 10,000
COGS: 5,000
Gross Profit: 5,000
Expenses: 2,000
Net profit: 3,000

Thus, GPR= 50%
NPR=30%
Expense ratio= 20%
So it is evident that the expense ratio is always... A) the difference between the net profit ratio and the gross profit ratio

Another way to think about this is NPR= np/sales = gp-expeness/sales = gp/sales - expenses/sales = GPR - Expense ratio

Any different opinions?

I picked A too

[Rainbowhippocampus]

I used Cash flow management for my report instead of global financial will I lose marks for this??? ;___;

I did cash flow management as well, it should be fine, they didn't say global or specify any

[Ninjajnin]

I used Cash flow management for my report instead of global financial will I lose marks for this??? ;___;

you never really "loose marks." As long as you justify whatever you choose to recommend, you will be fine. I think the important part is backing up your recommendation, unless the thing you say is completely irrelevant (which is definitely not in your case

[Opengangs]

Not sure if this has been asked or not, but did anyone else put 15) b) (industry averages). I feel as if comparative ratio analysis doesn't necessarily reflect the efficiency/profitability/liquidity/solvency nearly as well as industry averages (e.g. ratios may be low but if its better than industry average, would it still not be good?)

I felt as though just the sales and assets isn't enough to compare with the industry average. For instance, you might make $1 000 000 in sales, but how much profit are you really making? It's hard to make a link between profitability and sales, as a business may be increasing in sales, while making 0 profit. That's why I thought industry average was not enough.

I get what you mean though, because comparative ratio didn't feel correct as well. But comparative ratio analysis covers industry averages as one of the methods of comparing businesses.

[Inhumanities]

For the second part of the business report, (strategies to improve financial performance)
It didnt specify financial strategies so I did marketing strategies at the time since I saw a lot more links in the case study. I linked it to financial performance through the strategic role of marketing to translate the business goal of profit maximisation into reality, utilizing marketing strategies as a way to increase profitiability. Upon leaving the exam I realised how much of an idiot I was. Anyone know how much marks I should expect to lose? Anyone else do the same thing? Did I think way too much outside the box?

[Evil.Morty]

I thought the report was fairly reasonable but I only wrote around 4 pages for my essay, will I drop marks or should i be able to get a score of around above a 14? I integrated alot about how HR managers utilize strategies to overcome such external influences along with the ramifications of the influences on the hr processes so I said periods of economic downturn with low consumer confidence and spending will force a business to increase the number of workers made redundant and how it responds to this through a shift to a more directive.autocratic leadership style, and for technology I said how it requires training and development and also linked it back to separation in that technology can substitute human labour, and for social i tied it in with rewards and maintenance to maintain staff wellbeing with stuff llike flexible working arrangements, etc.

Is that okay to get me above a 13-14 even though I only wrote 4 pages?

[_____]

Hi, I am new here! 
I got A for this question because COGS is not part of expenses in the expense ratio calculation despite saying total expenses- here the total is to cover the different types of expenses like operating expenses.(I'm almost 100% sure), so using your exmaple:
Sales: 10,000
COGS: 5,000
Gross Profit: 5,000
Expenses: 2,000
Net profit: 3,000

Thus, GPR= 50%
NPR=30%
Expense ratio= 20%
So it is evident that the expense ratio is always... A) the difference between the net profit ratio and the gross profit ratio

Another way to think about this is NPR= np/sales = gp-expeness/sales = gp/sales - expenses/sales = GPR - Expense ratio

Any different opinions?

From the Business Studies in Action textbook:

The expense ratio compares total expenses with sales. The ratio indicates the amount of sales that are allocated to individual expenses, such as selling, administration, COGS and financial expenses.

Of course it's entirely possible that NESA disagrees with this. It happened last year with the sociocultural/economic question. But why else would they label it "total expenses"? What else, apart from regular expenses, is included in "total expenses"?

[khadeeja_]

i may be wrong but for question 7, where the options were economic, pyschological, sociocultural and government, would it not be pyschological factors influencing the individuals choice, because under pyschological there's a point called learning which describes the changes in an individual behaviour because of an experience, through: friend's perception of the product

[Ninjajnin]

From the Business Studies in Action textbook:

The expense ratio compares total expenses with sales. The ratio indicates the amount of sales that are allocated to individual expenses, such as selling, administration, COGS and financial expenses.

Of course it's entirely possible that NESA disagrees with this. It happened last year with the sociocultural/economic question. But why else would they label it "total expenses"? What else, apart from regular expenses, is included in "total expenses"?

Fair enough, I didn't see that in the textbook! But, I have a feeling it might have been irrelevant. Can u please tell me what option B was so I try to disprove it/ prove it with some more trials

Thanks!

[_____]

Fair enough, I didn't see that in the textbook! But, I have a feeling it might have been irrelevant. Can u please tell me what option B was so I try to disprove it/ prove it with some more trials

Thanks!

Sorry I thought option B was the difference one as you said. It's either that (A?) or my theory (D). Just depends whether COGS is included or not in expenses.

[Ninjajnin]

i may be wrong but for question 7, where the options were economic, pyschological, sociocultural and government, would it not be pyschological factors influencing the individuals choice, because under pyschological there's a point called learning which describes the changes in an individual behaviour because of an experience, through: friend's perception of the product

Fair point!
But the question specifically asked for the influence on the guy not his friend. In the textbook it mentions 'peer or reference groups' as a sociocultural influence influencing consumer choice. Hence, it is socioclultural

[Ninjajnin]

Sorry I thought option B was the difference one as you said. It's either that (A?) or my theory (D). Just depends whether COGS is included or not in expenses.

Oh sorry I thought you meant B was your answer. So what was D then? Sorry I didn't really spend too long on this question because I thought I got it straight away lol but turns out it's more complicated maybe?!

[MisterNeo]

What was this liquidity question? I forgot which question that was

[[MA165]]

What was this liquidity question? I forgot which question that was

the MC q about paying debts as they come in
options were liquidity, solvency, growth or efficiency.... iirc

[_____]

Oh sorry I thought you meant B was your answer. So what was D then? Sorry I didn't really spend too long on this question because I thought I got it straight away lol but turns out it's more complicated maybe?!

D > expenses ratio is always higher than net profit ratio. I showed an example a few posts back but I'm not 100% on it.