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BPP kit – Question 30 Q Organisation

Forums › ACCA Forums › ACCA PM Performance Management Forums › BPP kit – Question 30 Q Organisation

  • This topic has 3 replies, 2 voices, and was last updated 15 years ago by accaman.
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  • May 24, 2010 at 4:18 pm #44110
    acltang72
    Member
    • Topics: 18
    • Replies: 183
    • ☆☆☆

    Part 🙂 i)

    It says in the question that 50% of variable costs would be affected by a learning and experience curve and will apply to each batch produced. So why does the amount not affected by learning stay at $30,000? For not affected amount for 40,000 units I would have just did 50% of the variable cost again. Can someone please rephrase the text so it’s clearer?

    May 24, 2010 at 4:27 pm #60989
    accaman
    Member
    • Topics: 1
    • Replies: 49
    • ☆☆

    50% of the cost of 10,000 units is subject to the learning curve effect, the other 50% is not.

    What you are proposing would actually subject 100% of the cost to the learning curve effect

    May 24, 2010 at 5:01 pm #60990
    acltang72
    Member
    • Topics: 18
    • Replies: 183
    • ☆☆☆

    Ok thanks!

    May 24, 2010 at 5:08 pm #60991
    accaman
    Member
    • Topics: 1
    • Replies: 49
    • ☆☆

    Best of luck for June!

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