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P5, J-2015,Q1(iv)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › P5, J-2015,Q1(iv)

Viewing 3 posts - 1 through 3 (of 3 total)
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  • August 19, 2015 at 1:50 am #267699
    anirbanghosh
    Member
    • Topics: 2
    • Replies: 3
    • ☆

    For the evaluation of new factory in the performance dashboard, the solution provided by ACCA shows “Current capital employed” as $170.3m. I am not able to figure out how this was computed. Can someone help?

    August 19, 2015 at 12:32 pm #267760
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10637
    • ☆☆☆☆☆

    ROCE = Operating Profit/Capital employed

    So,

    Capital employed = Operating profit/ROCE = 71/.417 = 170.3

    August 21, 2015 at 2:16 am #267914
    anirbanghosh
    Member
    • Topics: 2
    • Replies: 3
    • ☆

    Thank you very much! Now that I see how it can be computed, it seems rather simple, and also explains why there was no workings provided for this.

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