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Life cycle costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Life cycle costing

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • February 10, 2018 at 10:34 am #436203
    ziniya
    Member
    • Topics: 14
    • Replies: 4
    • ☆

    hi,

    using the learning curve formula we first take out 100th unit value and then for 99th and then subtract the 100th value from 99 to get the value for one unit. In question no 4 Dec’2011 part b why the examiner has taken 99,900 units for calculating the revised life cycle cost?

    Good day!

    February 10, 2018 at 5:00 pm #436241
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54705
    • ☆☆☆☆☆

    The question says that the learning effect occurs until the 100th unit has been made.

    So for the first 100 units there is learning, but the remaining 99,900 units (so as to get a total of 100,000 units) each take the same time as the 100th units – there is no more learning involved.

    February 10, 2018 at 6:24 pm #436259
    ziniya
    Member
    • Topics: 14
    • Replies: 4
    • ☆

    Oh I got it, I missed a bit of the data.

    Thank you 🙂

    February 11, 2018 at 9:43 am #436361
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54705
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Life cycle costing’ is closed to new replies.

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