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Fixed overheads

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Fixed overheads

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • February 19, 2018 at 8:10 pm #438033
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Sir, suppose a company makes 2 products A and B and incurs general fixed overheads of $50000. However, company also incurs specific fixed overheads of $3000 but only for product B. Now suppose if company stops making Product B, and continue making only product A, so

    1) The general fixed overheads will remain same of $50000 na?
    2) Specific fixed overheads incurred will be $0 na?

    February 20, 2018 at 8:30 am #438071
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54705
    • ☆☆☆☆☆

    The general fixed overheads will remain.

    The specific fixed overheads relating to B will disappear if B is not produced.

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  • The topic ‘Fixed overheads’ is closed to new replies.

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