Forums › ACCA Forums › ACCA MA Management Accounting Forums › BPP practice kits
- This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.
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- July 31, 2018 at 4:36 pm #465428
Dear sir I’m confused in this question,
A company manufactures a carbonated drink, which is sold in 1 litter bottles. During the bottling process there’s a 20% loss of liquid input due to spoilage and evaporation. What is the standard usage of liquid per bottle?
The answer is
D. 1.25 litersSo I’m asking if the lost is 20% so we why cannot take 120% of liters because the spoilage is 20% and we want one litter so we should use 1.2 litters in order to have 1 litter in the bottle.
Thank you
July 31, 2018 at 5:23 pm #465445I will answer you, but in future you must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
For every 100 litres that is input, 20% or 20 litres is lost and therefore only 80 litres is available to be bottled.
Putting it the other way round, for every 80 litres bottled they need to input 100 litres.Therefore for 1 litre bottle, they need 100/80 x 1 = 1.25 litres input.
(You can see yourself that your answer does not work. If they input 1.2 litres and lose 20%, then they lose 20% x 1.2 = 0.24 litres and only end up with 1.2 – 0.24 = 0.96 litres 🙂 )
July 31, 2018 at 6:54 pm #465452Thank you so much sir for the answer and really sorry for questioning here, I thought it’s the Right place.
Thanks again
August 1, 2018 at 8:20 am #465494You are welcome 🙂
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