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june 2013 Q5

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › june 2013 Q5

  • This topic has 5 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • May 31, 2016 at 12:30 am #318228
    annian
    Member
    • Topics: 27
    • Replies: 31
    • ☆☆

    Hello sir,

    Just wanted to ask from june 2013 section b, Q5 (a) where budgeted expenditure is calculated:
    About the expected capital expenditure, why it is 0.7 * $145000?
    I thought it should be just 65000 + 0.7*45000 + 0.3*80000

    many thanks in advance

    May 31, 2016 at 7:24 am #318280
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    65,000 is what they spent last year.

    This year they will either spend 145,000 or 80,000 (and they shouldn’t have simply inflated last years cost as they did in the original budget).

    May 31, 2016 at 8:33 am #318305
    annian
    Member
    • Topics: 27
    • Replies: 31
    • ☆☆

    sorry again,
    my point is where did that 145000 come from as in the question there are two costs : 45000 and 80000

    May 31, 2016 at 11:12 am #318360
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    In note 3 of the question it says the cost will either be 145,000 or 80,000 – there is no 45,000 mentioned!

    And despite that being your point, it is still wrong to add the 65,000 as you wanted to in your original post!

    May 31, 2016 at 11:27 am #318368
    annian
    Member
    • Topics: 27
    • Replies: 31
    • ☆☆

    I have a printed version of the paper 3 months ago and it appears 45000, anyway so sorry for wasting time

    May 31, 2016 at 11:43 am #318385
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    No problem 🙂

  • Author
    Posts
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