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June 03, 2020, 09:16:45 am

Author Topic: VCE Accounting Question Thread!  (Read 198073 times)  Share 

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hq317

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Re: VCE Accounting Question Thread!
« Reply #1770 on: April 28, 2020, 12:16:54 pm »
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Hi,
If there is a decrease in cost of goods sold, there would obviously be an increase in the GPM, but would this affect the NPM in any way (as I've read that only expenses can affect the NPM).
Any help would be appreciated thanks.

Manny.R

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Re: VCE Accounting Question Thread!
« Reply #1771 on: April 29, 2020, 01:58:20 pm »
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ah ok, thank you so much for your reply! So people who have done accounting will have an advantage, but the course is designed for those with zero background knowledge?

Sorry for all my questions but do you know roughly what proportion of people in BCom at uni have done vce accounting? Is it a significant number? thank you! :)

Yes, that would be correct. They teach that unit as though you have no knowledge of accounting.
With respect to your second question, I do not know the answer to that. There are so many people that study BCom at Monash it is impossible to tell.

Manny.R

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Re: VCE Accounting Question Thread!
« Reply #1772 on: April 29, 2020, 02:16:33 pm »
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Hi,
If there is a decrease in cost of goods sold, there would obviously be an increase in the GPM, but would this affect the NPM in any way (as I've read that only expenses can affect the NPM).
Any help would be appreciated thanks.

It would indeed affect NPM. What's interesting is that you are partly correct in saying 'only expenses can affect the NPM', although obviously revenues affect it too. But your statement "only expenses can affect the NPM" is correct as it includes COGS, because COGS is an expenses. And therefore a variation in COGS will affect NP and NPM.

If you are talking about Net Profit Margin, then start with the formula for calculating it:
NPM = Net Profit/Revenue

This formula can be further broken down into:
NPM = (Revenue - COGS - Expenses)/Revenue

The first thing you should notice is the COGS is a part of the formula, and therefore any increase or decrease in COGS will affect NPM.

What you need to remember is that anything that increases or decreases Gross Profit will increase or decrease Net Profit. Because GP is contained within the calculation of Net profit. There are multiple ways to look at NP below and all are correct.
NP = Revenue - Expenses (which include COGS)
NP = Revenue - COGS - Expenses
NP = GP (which is Rev - COGS) - expenses

pahm

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Re: VCE Accounting Question Thread!
« Reply #1773 on: May 03, 2020, 04:38:20 pm »
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Yes, that would be correct. They teach that unit as though you have no knowledge of accounting.
With respect to your second question, I do not know the answer to that. There are so many people that study BCom at Monash it is impossible to tell.

thank you so much for your help! :)
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Manny.R

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Re: VCE Accounting Question Thread!
« Reply #1774 on: May 04, 2020, 12:56:18 am »
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thank you so much for your help! :)

You're welcome.

yikesagain

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Re: VCE Accounting Question Thread!
« Reply #1775 on: May 13, 2020, 09:52:13 am »
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Hi,

I was looking at a question from the 2019 exam for cashflow.
I don't understand how they get to the accounts payable figure of (222 015).

My thinking is the cost of sales at 210,000 + inventory on hand of 25,000. Less the 5% discount?

Thanks,