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ABC AND CAPITAL INVESTMENT

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › ABC AND CAPITAL INVESTMENT

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 3, 2021 at 1:56 pm #622942
    arowosegbemassive
    Member
    • Topics: 16
    • Replies: 12
    • ☆

    ABC
    How do one calculate the cost of three product when the indirect expenses is absorbed by one unit of each of the product…?
    Traditional costing approach absorbing overhead on the bases of indirect labour…
    Do
    What does the first one means and how do I use it?

    CAPITAL INVESTMENT

    Ursus, Inc., is considering a project that would have a ten-year life and would require a
    N1,000,000 investment in equipment. At the end of five years, the project would terminate and
    the equipment would have a salvage value of N20,000.
    How do I determine working capital and working released from these question?

    Thank you.

    June 3, 2021 at 3:23 pm #622959
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    With regard to your first question, this is all explained, with examples, in my free lectures on ABC.

    As far as your second question is concerned, this is not examinable in Paper PM (it is examinable in Paper FM and you would be given information about the working capital and cannot possibly calculate it just from the information that you have typed).

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    Posts
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