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ABC AND CAPITAL INVESTMENT

Forums › ACCA Forums › ACCA PM Performance Management Forums › ABC AND CAPITAL INVESTMENT

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 3, 2021 at 5:04 am #622862
    arowosegbemassive
    • Topics: 16
    • Replies: 12
    • ☆

    ABC
    How do one calculate the cost of three product when the indirect expenses is absorbed by one unit of each of the product…?
    Traditional costing approach absorbing overhead on the bases of indirect labour…
    Do
    What does the first one means and how do I use it?

    CAPITAL INVESTMENT

    Ursus, Inc., is considering a project that would have a ten-year life and would require a
    N1,000,000 investment in equipment. At the end of five years, the project would terminate and
    the equipment would have a salvage value of N20,000.
    How do I determine working capital and working released from these question?

    Thank you.

    June 3, 2021 at 7:48 am #622886
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49600
    • ☆☆☆☆☆

    In future you must ask in the Ask the Tutor Forum if you want me to answer.

    With regard to your first question, this is all explained, with examples, in my free lectures on ABC.

    As far as your second question is concerned, this is not examinable in Paper PM (it is examinable in Paper FM and you would be given information about the working capital and cannot possibly calculate it just from the information that you have typed).

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