Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Job, Batch & Service costing
- This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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- January 21, 2016 at 3:30 pm #297020
Dear Sir,
Hope you’re fine.
I having confusion with a problem, so I need your kind help.
Q: The following figures relate to 2 electricity supply companies.
Co. A Co. B
Total Cost ($000): 600 1000
Units Sold (millions) 2880 9600
No. of consumers (thousands) 800 1600
Sales of electricity (millions) $ 18 $ 50The correct answer stated that Co. A is less efficient than Co. B.
Ok, here’s my main problem:
A: The explanation to this question:
Co. A Co. B
Cost per: $ $Millions of units sold 208 104
Thousand consumers 750 625
$ m of sales 33,333 20,000Sir, I want to know how the following figures were calculated which resulted into the figures above. Pls pls pls help me with the calculation.
Thanks in advance.
January 22, 2016 at 9:11 am #297120For company A, the cost per millions of units = 600,000/2,880
The cost per thousand consumers = 600,000/800
The cost per $m of sales = 600/18Same workings for company B 🙂
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