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I watched long question in your lecture and there was bank overdraft which its finance cost is considered as relevant cost.But there are two examples in bpp and becker,finance lease purchase including finance cost is not considered as relevant cost.from this inference we can know that besides finance lease purchase’s interest cost is not relevant because it is commited cost but in the case if bank overdraft and bank loan interest cost is relevant
Did i get it correctly?
Yes in the second example i missed this case u are right.
first example if there were not any loss of 5000 from total contribution of 10000 would we recognise only relevant cost as total contribution of 10000?
Another question to reconcile the above query with the below question.
The contract requires 800 hours of skilled labor.Skilled labor is paid $9.50 per hour.there is shortage of skilled labor and all the available skilled labor is fully employed in the company in the manufacture pf product P.The following information relates to product P
Selling price——————–100
less skilled labor———–38
less other variable cost–22contribution-40
in this example, i have lost contribution plus its fixed rate pay of 9.50 and the relevant cost will be 800*9.50+800*40=39600.
comparing it with the first example, the first example looks like the second example but in the first example we only consider 5000 as relevant cost not adding 1000 over 5000?
From my understanding, i think 5000 will only considered because there is loss of 5000 which does not meet the requirement of the second example’ case?let us say if we did not have loss of 5000 from the total contribution of 10000 would we consider it in the following way;10000 lost contribution+1000 fixed pay=11000?]
Really need explanation first example not really second example i just showed it for comparison.
Really,I was stuck to understand it.I have two total contribution which one of them is 3358,6 and another is 3750.
according to your calculation,8484/3358,6 means total sales of 8484/total contribution of 3358,6 which gives the outcome of 2.526.
Please explain it in a clear way:(
My Dear tutor, I watch your lecture and it is helpful.I am almost doing examples based on your lecture videos.But honestly I watched and did not understand.
if 50 hours related job is completed during 40 hours why remaining 10 hours should be considered as overtime including paying 12.50$?
Also is interest received recorded under operating cash flow activities or investing?could you explain in which case it is recognised under operating and investing?
Another question
t 1 January 20X4, Tartar Co has a total receivable of $380,000. A specific allowance of $20,000 had been made for a business customer, Drab. The general allowance for receivable was 2.5%. During the year, Drab went out of business owing Tartar Co $ 28, 000, none of which is expected to be recovered. At 31 December 20X4, Tatar has total receivable of $420,000. There was no specific allowance but the general allowance for receivable was increased to 3%.
A $ 16,400
B $ 31,600
C $ 44,400
D $ 11,600opening allowance
380000-20000*2.5=9000+20000=29000closing allowance
420000*3=12600reduction 16400-28000=11600
why we do not deduct 28000 from 420000 in order to find closing allowance ?it says during the year so it should be deducted from 420000?
these two question is almost the same question in the point that i can not cahtch it
it is like i know in advance it will change at 31 december 20×3 that is why i consider two years?
Yeah it says general allowance at the end.i did not pay attention to it sorry.Thanks for explaining
My Dear tutor, 2nd note still seems to be ununderstandable.if it credited cash what would be its debit side (ignore suspense account this time).I want you explain it below.Please.
did
debit omitted
credit payable-1512should
debit purchase -1512
credit trade payable-1512correction
debit purchase-1512
credit suspense account-1512thanks for explaining..usually when i do these kind of question i try to explain myself while doing and this one seemed to be confusing that is why asking..
By the way open tuition helped to pass f1 f2 f3 f7 thanks for your support…
My Dear Tutor, I will have exam to EY that is why revising it to remember some forgotton parts
Yes log 0.85/log2= -0,0705810743/0.3010299957=-0,2344652537
———————-average time per unit
15*———105.9930673=1589.8960095y=200*15^-0.2344652537=105.9930673
i mean instead 29 i calculate 31 then deduct total hour of 30
total hour for 30–2703
total hour for 31-2771
————————69
is this way also possible?for instance, example 1(chapter 5) in your open tuition lecture note from key factor analysis shows only one limiting factor which was total 48000 hours require to apply only key factor analysis not graphical approach but example 1 (chapter 6) in limiting factor requires to apply only graphical approach because there are two limiting factors and it can not be solved using key factor analysis method.
Yea yea i understood now.
3125/250=12.5
200kg per kg 11 $
if it is not used it will be sold at scrap value which its scrap value will be its NRV.2200 here will be opportunity cost.if the materials required have not already been acquired, it is relevant cost will be its current or future market price-
if the materials have been acquired and regularly used its relevant cost will be also current and future market price(so called replacement cost)
I can get the logic behind these mentioned above but coming to alternative use and not used seems to be confusing.