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accountancy teaching co ( dec 2010)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › accountancy teaching co ( dec 2010)

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • November 13, 2017 at 10:48 am #415530
    imran5556
    Participant
    • Topics: 39
    • Replies: 29
    • ☆☆

    Sir i didnot understand the working of cost of sale specially freelance staff cost

    November 13, 2017 at 7:30 pm #415611
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54724
    • ☆☆☆☆☆

    The question says that in 2009 the total lecture staff costs were $41.663M. It also says that 35% of this is the cost of freelance lecturers.
    Therefore freelance lecturers cost $14.582M in 2009

    In 2010, the question says that the freelance costs were $12.394.

    Therefore the cost has fallen by $2.188M, which as a % is a fall of 2.188/14.582 = 15%.

    Since the question says that the same number of courses were run, and that the same % of them were run by freelance lectures, it means that the fall of 15% is due to paying less which is more than the 10% that the question says they were asking for.

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