[mansoorwahid]

thanks. got it.

[mansoorwahid]

as per my understanding if some cost remain unaltered (meaning fixed) then inclusion in first part of question is wrong…

please guide. thanks

[mansoorwahid]

I dont udnerstand this note in BPP solution:

“Note. Attributable fixed costs are not included in the following calculation. Attributable fixed costs remain unaltered irrespective of the level of production of keypads and display screens, because as soon as one unit of either is made, the costs rise. We know that we will make at least one unit of each component as both are cheaper to make than buy. They are therefore an irrelevant common cost.”

[mansoorwahid]

Same querry- Question 154 in BPP revision kit (Robber Co)
if some cost is being relevant in calcuting saving, why its not relevant while making decision?

[mansoorwahid]

thanks. i am using one valid upto june 2020.

[mansoorwahid]

i have this same confusion. did you get answer?

[mansoorwahid]

i got same questions as you got…and i think its different CBE for different countries or what ever….

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