• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March 2026 exams.
Get your discount code >>

T CO bpp revision kitt

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › T CO bpp revision kitt

  • This topic has 2 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • January 24, 2019 at 8:46 am #503158
    kennigara
    Participant
    • Topics: 193
    • Replies: 250
    • ☆☆☆

    Hi My Dear tutor,I have a question

    the note 2

    the installation is expected to take one week to complete and would require three engineers, each of whom is paid a monthly salary of $4000.The engineers have just had their annually renewable contract renewed with T co. One of three engineers has spare capacity to complete the work but the other two would have to be moved from contract x in order to complete this one.Contract X generates a contribution of 200$ per engineer per week. There are no engineers available to continue with Contract X if these two engineers are taken off the job.it would mean that T co would miss its contractual completion deadline on Contract X by one week.As a result, T co would have to pay a one-off pemalty of 500$.Since there is no other work scheduled for their engineers in one week’s time, it will not be a problem for them to complete contract x at this point.

    in the answer 500 has been showed as a relevant cost but i think i different ways.

    If one of three engineers have spare capacity and the other two engineers would have to be moved from cthe contract X.

    Let us assume that, the one engineers who has spare capacity, its annual salary will be paid anyway which is not relevant

    coming to other two engineers, if they earn 200$ contribution from contract X then it is lost contirbutin because they are taken from contract x to complete this T co’s project

    direct cost plus lost contribution by taking consideration of two engineers

    $4000*2 engineers=8000
    lost contribution of two engineers is $400 each earns $200 separately.

    I calculated in this way but the answer says 500$?why?

    January 24, 2019 at 9:01 am #503160
    kennigara
    Participant
    • Topics: 193
    • Replies: 250
    • ☆☆☆

    I think I got it, because it is cancellable contract and its penalty is only 500 $ compared to 8400$ pay.it is relevant for the company to pay 500$ instead of 8400$.

    January 24, 2019 at 10:36 am #503168
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54814
    • ☆☆☆☆☆

    Yes – that is correct 🙂

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • The topic ‘T CO bpp revision kitt’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Kim Smith on What is Assurance? – ACCA Audit and Assurance (AA)
  • LiliyaM on What is Assurance? – ACCA Audit and Assurance (AA)
  • Sarailee95 on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • John Moffat on PM Chapter 8 Questions Cost Volume Profit Analysis
  • John Moffat on FA Chapter 8 Questions Irrecoverable Debts and Allowances

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in