OpenTuition | ACCA | CIMA
Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums
Spread the word
Please spread the word so more students can benefit from our study materials.
If you have found OpenTuition useful, please donate
November 5, 2018 at 12:06 pm
Thanks for this one but I wonder why the correct answer is Flow Cost Accounting.
July 7, 2019 at 7:18 pm
I wonder that too…
August 25, 2019 at 11:55 am
its because one of the categories in flow cost accounting is “delivery and DISPOSAL”, therefore it does take into account the dismantling of machines at the end of the project since thats considered a disposal.
September 15, 2019 at 10:59 am
August 24, 2020 at 2:37 pm
August 26, 2018 at 10:33 am
Sir, in the online mock exams on open tuition, the answer for the cost of dismantling machines at the end of a project Is given as lifecycle costing.
So incase it comes in the exam, which is the answer that I should be choosing, flow cost accounting or lifecycle costing?
August 5, 2018 at 11:50 pm
Sir could you please explain why Q3 is flow cost and not life cycle. I’m not able to find any answers in the comments
John Moffat says
August 6, 2018 at 7:09 am
To be honest this is a poor question as it stands (and BPP no longer include it in their revision kit), and I will have it changed.
However, although life-cycle costing will attempt to include the costs of dismantling, it is flow-cost accounting that will specifically consider it.
August 6, 2018 at 9:46 pm
okay thank you 🙂
August 7, 2018 at 7:14 am
You are welcome 🙂
May 22, 2016 at 5:57 pm
Sir in BPP Revision kit the same MCQ answered is Lifecycle costing and not Flow cost accounting. Reference (Q1:1.8).
May 23, 2016 at 5:45 am
See Shirley’s answer below 🙂
May 23, 2016 at 7:32 pm
Got it 🙂
May 23, 2016 at 8:03 pm
July 18, 2018 at 7:06 pm
I can only see the answer below and there is no explanation of why the flow cost accounting technique is the relevant method. yet, the life cycle costing is also taking cost of disposal of waste into account when calculating the environmental cost.
Moffat can you please provide some explanation about the difference between the lifecycle costing and flow cost accounting ?
January 19, 2016 at 4:11 am
i would have to agree that the answer for number 3 should be life cycle costing
January 19, 2016 at 8:05 am
No – the answer is flow cost accounting. See Shirley’s explanation below.
December 8, 2015 at 1:10 pm
May u plz explain why it is “Flow cost” and not “Life Cycle” tks
December 8, 2015 at 2:54 pm
I don’t know which of the questions you are asking about.
January 17, 2016 at 2:25 pm
This is just my understanding. When I look back to the textbook, it described the main purpose of flow cost is to reduce the negative production portion and increase positive product portion. While the life-cycle took all the cost as a whole to consider when often in the preliminary project stage. So given the question to compute dismantle machine only at the end of project, the organization is more likely to apply the flow cost methods. Hope this helps!
November 24, 2015 at 9:16 am
Please explain the answer for question (3). My answer is Lif cycle costing.So, i don’t quite understand why the correct answer is flow cost accounting.
November 23, 2015 at 8:35 pm
In my opinion, answer to the question “which accounting technique is relevant when considering cist of dismantling the machines at the end of project” is life cycle costing whereas given answer is flow cost accounting. Kindly explain.
You must be logged in to post a comment.