Forum Replies Created
- Posts
I was thinking,
if we go for innovation, we will end up making more cost.
So….It means NPV is supreme at our level right?
we do not need to care about IRR if both NPV and IRR are given…
am I correct ??Incremental contribution is asked there
So I am confused of the word CONTRIBUTION,
can we include incremental fixed costs here or notYes I have typed all the question
But answer was given A and D.And yes NPV is the supreme one right ?
could you please tell me in which condition we go for IRR instead of NPV ???It is in Kaplan specimen exam question
And I literally didn’t get that
Could you please elaborate it sir !in the question, it is said that always!
and I don’t think it’s true
because there might not be fixed cost in some scenario
so it might equal absorption costing in this scenario…. as u told earlier…I am afraid of the word ALWAYS!
and one more thing
in the same question, it was given that marginal costing profit will always be higher
and the answer is given false here
it means both of the questions must be false right??
if one is false then so is another……
I’m so confused of this unclear question so i hope some help from your side
thank u in advanceI got this question from mock question published by Kaplan
But
Here (600000) was in year 0.
But question has said that 45000 annual cost paid in arrears.So I thought it would be paying 45000 annually from year 2 to year 6
Need help here John
24.8 Swindle Co makes widgets. Two types of labour are involved in the production of a widget, skilled and unskilled. Skilled labour is paid $15 per hour and unskilled $3 per hour. Twice as many unskilled labour hours as skilled labour hours are needed to produce a widget, six unskilled labour hours being needed.
A widget is made up of two different direct materials. Five kg of Material X and two metres of Material Z are needed. Material X costs $2 per kg and Material Z $5 per metre.
Variable production overheads are incurred at Swindle at the rate of $3.00 per direct skilled labour hour.
The basis of fixed cost absorption is direct skilled labour hours. For the coming year, budgeted fixed production overheads are $100,000 and budgeted production of widgets is 10,000 units.
Administration, selling and distribution overheads are added to products at the rate of $20 per widget, and a mark-up of 15% is made on each.
Task 1
Complete the standard cost card for a widget:
Standard cost card for a widget $ Direct materials – X …..
Direct materials – Z ….
Direct labour – skilled…..
Direct labour – unskilled…..
Variable production overhead…..
Fixed production overhead…..
Admin selling and distribution overhead.. Standard cost of sale….
Standard profit…
Standard sales price…This is the question sir
Here to get standard cost of sales
Bpp has added all the cost along with admin selling and distribution overhead, is that correct?One question sir
To be a relevant cost
There must be cash flow or
Non cash flow items can also be a relevant cost ?And what we called to that amount which is saved just because we didn’t accept let’s say ABA project.
It means here
Relevant cost will be
7200+4000=11200
And
Relevant cash inflow = 19800-11200= 8600
Right ?
Or what
Need your help sirbut sir in this one :
An organisation has the following total costs at three activity levels:
Activity level (units) 8,000 12,000 15,000
Total cost $204,000 $250,000 $274,000Variable cost per unit is constant within this activity range and there is a step up of 10% in
the total fixed costs when the activity level exceeds 11,000 unit. find variable cost per unit.Q. sir in this question, we do not calculate the variable cost per unit same way like in previous one why ?
i have copied this question from bpp kit sir
(it’s 3b.18)
and question is as it is…i found that
glue for book was mentioned indirect butresins for golf was direct