[moniq789]

Thanks Stephen-this is a question from official ACCA site (their application on site student virtual laerning -> SVL and part dedicated for SBR, question no. 5 – > https://studentvirtuallearn.accaglobal.com/course).

Today I realized that there is also an explanation for that but not (yet!) getting it. Any chance you also think there is a typo error and the total is 53 000? Below copy paste from the answer given:

“The unwinding of the discount on the decommissioning provision is an interest expense but not a cash flow. The interest on the lease is a correct charge to profit or loss and it was paid in the period”

Q: What is the cash flow in respect of interest paid that will appear in BK’s statement of cash flows for the year ended 30 September 20X1?

A: The correct answer is: 55000

[moniq789]

Hello all,
thanks for your responses. This is indeed true – the correct answer is 80 $ . Variable cost of course, as stated above.

I`ve raised it on Becker forum. And got confirmation that the answer should be A: 80$ (and not B – printing issue).

Thanks again for paying attention to it:)

[moniq789]

Hello,
I am able to give you the answer trom Becker. According to it, the correct one is B: 113

Explanation: the min.price is the relevant cost;
Capacity is 54K per quater (18×3);
Domestic sales are 50K per quater;
so there is spare capacity of 4K;
potentatial order can be satisfied without any loss, so there is no opportunity cost.

The relevant cost is the incremental cost, which is the variable cost per unit.

Moniq

[moniq789]

Thank you Sir a lot! :):)

[moniq789]

Dear Sir, please accept my apologies for previous ignorance 🙁

If only I would start with the batches.. Thanks!!!!! For a strange reason I was trying to understand how relevant is the time information….

Again, thank you a lot for your understanding and explanation.

May I ask a 2nd question?
I used the March/June 2016 version of Notes while watching the lectures (I started in May). Would you recommend to print the latest (this is Sept/Dec 16 version now?

What I can see from the Syllabus changes on ACCA site, the content wasn`t changed. However the exam format is going to be changed.
I work also with Becker Revision Question Bank.

If I am mistaken, could you please advise? thank you in advance:)

[moniq789]

Thank you John a lot! Please apologize, this was the first question raised by myself in the forum.
Yes, I did watch your lectures and I find them amazing! I am big fan of you! I

This question above I found in Becker, and it is pretty similar to the question in the F5 Revision Kit, where it is asked about Open Ltd and set up costs for X.
I understand it and follow the method, unfortunately for this example the answer is 1,8 USD, while I calculated 1,5 USD.

I asked it on the other forum, but no response 🙁

[Author]

Posts