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ACCA P3 Chapter 31 Marginal and relevant costing; ABC
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Sir, why did you take setup costs like 7000/1000 for A and 7000/100 for B? Why not take proportionally because 7000 s total figure and does not pertain to any one product.
Where (time) in the video are you talking about?
I see now. A set up cost of 7000 is caused by a set-up event. If that event is for a run of Product A you get 1000 units; for B you only,get 100 units.
Thank you , it’s useful