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Apportionment and Break Even

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Apportionment and Break Even

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • August 13, 2015 at 7:01 pm #267102
    Carla
    Member
    • Topics: 4
    • Replies: 7
    • ☆

    I have two queries:

    1. In a case where NBV or the cost of the equipment is not given, should I use Floor Space or Machine hours as a basis to apportion Depreciation.

    2. The break even point for “under” 800units and the BEP for 800units and over is given. If the question states Draw a Breakeven Chart for “UP TO” 800 units. which breakeven point should I use to draw the chart.

    Awaiting a swift Response

    Thanks

    August 14, 2015 at 6:22 am #267133
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    1. You wouldn’t choose to use either – it would make no sense. Any exam question would either give you a sensible basis for apportioning, or would specifically tell you what basis to use.

    2. You cannot be asked to draw a break-even chart in Paper F2 (it was removed from the syllabus ages ago and is now only asked in Paper F5)

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