In June 2019 CBE exam there was a question where it said to calculate total cost per unit based on ABC. In addition there was a note indicating that 10% of inspection costs, 30% of machine set-up costs and 20% of general overhead cost were environmental costs. The question is should we include environmental costs in total cost per unit by ABC or should we substract them.
Thanks!
Ask the Tutor ACCA PM
ABC costing
7y ago#1You would include all costs including environmental costs, unless there was something in the question to say differently.
I have obviously not seen the question but I would guess that maybe they needed a different cost driver to be applied.
Sign in to reply to this topic.