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January 15, 2018 at 9:50 am
Hi, in question 4, according to the equation, increase total factory cost should lower its ratio right?
June 12, 2018 at 6:34 pm
no, because when total factory cost increases: the conversion cost per hour increases(cost per factory hour);since TA ratio = Contribution (sales less material cost only) per hour/Conversion cost per hour (or cost per factory hour) .The impact would be reducing of TPAR
September 18, 2016 at 12:40 pm
Hi – yes – Im sorry – you are correct Q2 should be answer d) Alpha, Gamma, Beta. Ill get this changed asap.
August 18, 2016 at 9:06 am
I think the answer given is wrong the correct answer should be alpha gamma and betta
August 18, 2016 at 9:15 am
I mean for question nunumb 2
May 31, 2020 at 2:48 pm
No. The marginal costing profit will be higher as there is a decrease in inventory levels so more fixed overheads r carried forward and matched against sale when they r sold resulting in lower absorption costing profit. Cl Inventory decreases, cost of sale increases and so profit decreases for absorption costing.
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