[preetgarcha]

I understand, Thank you.

[preetgarcha]

Hello Mr. John, I double checked the question and answer I copied correctly,
answer C. i and iii.
so,
per question:
Which of the following statements are not correct?

iii) is an incorrect as question demands but i) is a correct information so, acc. question it should be iv)

I believe as well maybe printing mistake.

thanks for your help.

[preetgarcha]

Hello Mr. John,

I apologise, next time I’ll start a new thread, and thanks to let me know, I was worrying not to understand this topic.

[preetgarcha]

Thank you so much Mr. John for your an immediate reply. It’s really clear to me now. Thanks again
May i Request to you following two questions explanation as well, please,
(2 marks)

A company is evaluating a project that requires two types of material (T and V). Data relating to the material requirements are as follows:

Material type
T
V
Quantity for project kg
500
400
Quantity currently in stock kg
100
200
Original cost of quantity in stock £/kg
40
55
Current purchase price £/kg
45
52
Current resale price £/kg
40
Material T is regularly used by the company in normal production. Material V is no longer in use by the company and has no alternative use within the business.

What is the total relevant cost of materials for the project?

A. £40,400.

B. £40,900.

C. £43,400.

D. £43,900.

answer is B

A machine owned by a company has been idle for some months but could now be used on a one year contract which is under consideration. The net book value of the machine is £1,000. If not used on this contract, the machine could be sold now for a net amount of £1,200. After use on the contract, the machine would have no saleable value and the cost of disposing of it in one year’s time would be £800.

What is the total relevant cost of the machine to the contract?

A. £400.

B. £800.

C. £1,200.

D. £2,000.

Answer is D.

Bless you for your kind knowledge which you distribute.

[Author]

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