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Sep/Dec 17 Question 3 a

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Sep/Dec 17 Question 3 a

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  • May 18, 2018 at 5:53 pm #452738
    Candy
    Member
    • Topics: 135
    • Replies: 79
    • ☆☆☆

    Dear tutor,

    I think I have a descent understanding of Rev. fr. Contracts with Customers but I could not understand the basis for the calculations.

    0.9m/4.1m x 3.6m?

    Why divide the wind turbine + standalone maintenance service by standalone maintenance service and then x by combined contract price.

    This really confuses me.

    Please explain

    Thank you

    May 21, 2018 at 7:36 pm #453188
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7222
    • ☆☆☆☆☆

    Hi,

    The total price to be allocated is $3.6m to each of the turbine and warranty. We allocate it on the stand alone prices of $3.2m and $0.9m, which total $4.1m. Therefore 0.9/4.1 is allocated to the total price to be allocated of $3.6.

    Thanks

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