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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › ABC Cost Drivers
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
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
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.
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 🙂
No problem 🙂
