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ABC Cost Drivers

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › ABC Cost Drivers

  • This topic has 4 replies, 3 voices, and was last updated 8 years ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • February 1, 2017 at 6:42 pm #370636
    caroline22
    Member
    • Topics: 12
    • Replies: 7
    • ☆

    Hello,

    I have the BPP Study guide aswell as the revision guide (the revision guide i will use when i have finished the lectures)
    one of the chapter round up questions is
    The cost driver for Quality inspection is likely to be batch size true or false – i have put true but the books answer says its more than likely number of production runs – however on looking back to understand the answer it says in a table that cost driver – batches produced is likely to be associated with costs such as purchase orders, set-ups and inspection.
    so can you please explain why their answer says production runs.

    thanks

    February 1, 2017 at 9:10 pm #370664
    blaze118
    Member
    • Topics: 9
    • Replies: 12
    • ☆

    Hello caroline

    Its false because quality inspection is mainly in production run. Production runs are in batches not the batches in production run.
    Hope that helps

    February 2, 2017 at 7:45 am #370716
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    Blaze: Please don’t answer in this forum because it is Ask the Tutor (but please do help people in the other F5 forum).

    Caroline: What Blaze has written is correct.

    February 2, 2017 at 2:42 pm #370772
    blaze118
    Member
    • Topics: 9
    • Replies: 12
    • ☆

    Sorry john. I did it to check if im going on correct path or not mean too say weather im getting the concept or not. I woudnt do it again Sorry 🙂

    February 2, 2017 at 4:26 pm #370792
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    No problem 🙂

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