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OCR F297 Case Study

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Reply 120
Original post by harriet6250
Does anybody else think the overheads for Rockingham Forest Peddlers is extremely high? (£234,000) considering they have a 10 year free lease on the outlet and only 2 staff members? I cant think what could account for such a huge amount of money. If anyone has any ideas it would be appreciated!


This is a massive point to make especially when referring to the break even objective! At the moment overheads are allocated in proportion to sales revenue, a more fair way of allocating could be to do it by number of staff in an outlet or the shops square footage. If they had allocated overheads more fairly and therefore reflected true costs, rockingham forest would've probably already broken even :smile:


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Original post by ebduff
This is a massive point to make especially when referring to the break even objective! At the moment overheads are allocated in proportion to sales revenue, a more fair way of allocating could be to do it by number of staff in an outlet or the shops square footage. If they had allocated overheads more fairly and therefore reflected true costs, rockingham forest would've probably already broken even :smile:


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Yes exactly what i was thinking, thank you :smile:
Original post by frosty122
also this question "evaluate factors influencing the demand for ccls product and bicycle hire ? would i talk about macro economic factors ?


Yeah I'd say, Interest rates, inflation and economic growth:smile:
Reply 123
So what does everything think the MOST likely questions are going to come up?
I know we can't say any for definite!

How're you all doing with a day to go? :smile:
Im seriously worried now after reading all the stuff you guys have revised. Do you think the decision tree will come up? If not- what else would it be?!
Reply 125
Original post by Ollymurslove
Im seriously worried now after reading all the stuff you guys have revised. Do you think the decision tree will come up? If not- what else would it be?!



I think there's like 90% chance decision tree will be on, otherwise it'll probably be ratios, can't think of what else it could be apart from them two!
Original post by ebduff
I think there's like 90% chance decision tree will be on, otherwise it'll probably be ratios, can't think of what else it could be apart from them two!


Somebody said something about "times series analysis" but I've never been taught that?!
Reply 127
Original post by Ollymurslove
Somebody said something about "times series analysis" but I've never been taught that?!


Me neither! So I assume it's pretty irrelevant to this! I wouldn't worry about it :smile:


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Can anyone give me a brief overview of what topics they're revising? I'm looking at macroeconomic factors and stakeholders but idk what else to look at before! :/
Reply 129
I am so stuck at what to revise apart from the obvious.
Reply 130
i have the APT
Does anyone know what the 'additional sponsorship' means/entails? its mentioned on line 67 and is one of the branches off the decision tree.
Original post by harriet6250
Does anyone know what the 'additional sponsorship' means/entails? its mentioned on line 67 and is one of the branches off the decision tree.

Just means that they do more sponsorship In the future :smile:
Original post by Ollymurslove
Just means that they do more sponsorship In the future :smile:

Thank you!
What is price discrimination??
Reply 135
Original post by ebduff
I think there's like 90% chance decision tree will be on, otherwise it'll probably be ratios, can't think of what else it could be apart from them two!

My teacher said if decision tree doesnt come up then it may well be payback or ARR
Reply 136
On a macroeconomic question i would write about 1. monetary policy 2. unemployment and 3. inflation.... but there doesn't seem to be much to write on inflation affecting ccl apart from price of bike rising ahead of inflation, certainly not enough for a pargraph, any suggestions?
Reply 137
http://www.scribd.com/doc/134076721/OCR-F297-Toolkit-June-2013-pdf

Maybe this might be useful for some of you lot..
Original post by harriet6250
ARR stands for accounting rate of return and is used by business's to assess the financial reward of an investment, in order to decide whether to go ahead with it or not. It basically compares how much money you will get back compared to what you invested. In terms of this case, it could come up in terms of the proposed investment in solar panels and the proposal of acquiring the golf shop.


Thanks
Original post by Ollymurslove
What is price discrimination??


It means when you charge different people different prices for example in CCL during peak times in the summer they put the prices up and lower them for the rest of the year

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