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Activity Based Costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Activity Based Costing

  • This topic has 3 replies, 2 voices, and was last updated 8 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 15, 2017 at 9:22 am #401918
    Avatarnitint
    Participant
    • Topics: 25
    • Replies: 26
    • ☆☆

    Hi John,

    In the Beckley Hill question (section B, question 1) from June 2015, one of the cost drivers given is the average number of meals required per patient.

    There is no information on the number of patients in each of the two procedures and I see that the examiner has simply multiplied this with the number of procedures carried out to calculated OAR.

    Am I missing something or you feel that the information could have been framed better to avoid confusion?

    Thank,
    Nitin

    August 15, 2017 at 9:27 am #401920
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    You have a point, but I think it is reasonable for the examiner to assume that each patient has one procedure, given that there is not other information.

    August 15, 2017 at 10:34 am #401925
    Avatarnitint
    Participant
    • Topics: 25
    • Replies: 26
    • ☆☆

    Thanks John.

    August 15, 2017 at 3:00 pm #401946
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Activity Based Costing’ is closed to new replies.

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