[meah]

Thanks a lot. That is the part I wasn’t sure about. You’ve been so helpful.

I am having a big problem with the make or buy decision as well as relevant costing. I can’t seem to understand how BPP or Kaplan make the decisions on those questions. I read the BPP and Kaplan text and I am so frustrated.

[meah]

Thank you for the information on backflush accounting and also the equation.

Regarding the equation what I dont understand is as follows:

The original equation before mulitiplying by 4 was:

0.5x + 0.5y = 80 when multiplied by 4 is 2x + 2y = 320

My question is did you devide the 320 by 2 two times?

2x = 320
x = 160

Don’t understand how you got the 80 and not 160?

[meah]

I don’t understand backflush accounting. I read that topic several times but I am still not getting it. I am not sure if someone could explain it in a different way from the way it explained in the text. I would really appreciate the help.

Thanks

[meah]

Thank you.

I could do the equation up to that point but the answer in the text for both x and y is 80. I cant understand how they got that.

Using the equation about
2x + 2y = 320
2x = 320/2
x = 160
y = 160

Is that correct??

[meah]

I was looking at a question in the Kaplan text. Question “Quarko Co. I cant remember how to solve the equation.

4x + 2y = 480
0.5x + 0.5y = 80

I need to solve the equation in order to find the budgeted profit.

Could some please assist?

Thanks

[Author]

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