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Kaplan q 33 a. Direct cost to build the asset is 2 m in feb 2016 and 1 m in each subsequent month until year end I.e may 2016.
The kit ans states that the weighted average ca of the machine during the period is 2m+3m+4m+5m/4.
My question is why is the ans including the 4m and 5m ?????
ThanksI don’t have the Q but, ASSUMING THAT ASSET NOT BROUGHT INTO USE BY 31 May
Cumulative spend:
Feb 2
Mar 3
Apr 4
May 5I suppose you would add the numbers together and divide by 4
Don’t spend too long on this – unlikely that the SBR examiner would be very interested in this
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