[Aleksandra]

Did we have to show calculations in the answer booklet? I was calculating on the question booklet and then just draw dots…:((( I know it is weird.

No, you didn’t have to. You could write your calculation strait on the question paper to make it easier for you. I did ask that question!

[Aleksandra]

Exactly! It was nothing to do with throughput accounting I think …

[Aleksandra]

Thank you very much for your answer John. I am using Kaplan book and I wasn’t sure about answer in the book. I did not look at it as an opportunity cost … but now it’s clear.

Thank you again.

[Aleksandra]

Good day Sir. I hope you can help me to understand this …

UU Company has been asked to quote for a special contract.

Material X:

Book value: $5.00 per kg
Scrap value: $0.50 per kg
Replacement cost: $5.50 per kg

The contract requires 10 kg of Material X. There are 250 kg of this material is I inventory which was purchased in error over two years ago. If Material X is modified, at a cost of $2 per kg, it could then be used as a substitute for material Y which is in regular use and currently costs $6 per kg.

What is the relevant cost of the materials for the special contract?

Please could you write an answer and explain why is it?

Thank you

[Aleksandra]

Andrea worked for lady Gertrude and part of her job was to buy plants, ornaments and furniture for the gardens of her county manor house. When her daughter, Harriet, was about to finish studying at uni, Lady G told Andrea that Harriet would be taking on these responsibilities.
A few weeks later, Andrea ordered some very expensive roses and marble statues from Lady G main supplier and collected the goods the next day for her own garden. The invoice was delivered to Lady G.

Q: Weather Lady G is bound to settle the invoice?

by Kaplan the answer is: yes.

Please could you explain why?

[Aleksandra]

I contacted Kaplan today as I had the same concern and they are saying it is up to 31/08/15

[Author]

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