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Thank you :)….
Next time I will care.
In previous post SIR I asked about What is meant by ( rounding figures)?
Sometimes I face difficulty in MOCK.
Next time I’ll post the whole question for complete explaination :)….Initial cost: $300,000
Expected life: 5 years
Estimate scrap value: $20,000
Addition revenue from project: $120,000 per year
Incremental costs from project: $30,000 per year
Cost of Capital: 10%calculate the accounting rate of return
No sir I purchased mock from ACCA account there are No ANS. thats y i felt uncomfortable with that.
Calculations are pretty straight forward.
(Actual sales-budgeted sales) x SCM (standard contribution margin)Actual units are 200 higher than budgeted so Ans. should be favourable (Actual>budget)
SCM= ( std. selling price- std variable cost)
Which gives us
SCM=$40-30=$10
ANS. 200x$10=$2000 Fav.I want MTQ of investment appraisal or long question plz gave me a link or question if you have 🙂
I was just confused. & also these question are from ACCA mock With No ANS.
Well thank you 🙂 Actually my CBE held on FEB 8 that y sir 🙂
ACCA just uploaded MOCK with NO key or solution.I purchased mock from ACCA but they contain just question with No Ans.
1-payback is useful as an initial screening device ?
2-ABC does not result in under or over absorption of fixed overhead?
YES OR NO.