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Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Bpp question 13 (cohort)
Can someone pls explain how the unrealised profit in acquistion of air calculated as 0.6. Thanks
hi,
if cost = 3 m and
profit = 1 m therefore
selling price = 4m !
so to calculate the percentage of the profit = (1/3) profit/cost.
and since 1.8 m (selling price) is left , so 1/3 of it is profit portion!!
=1.8*1/3=0.6
hope i was able to explain it to you!
Thanks
Hello Arifarshad,
I am still confused about this. In this example profit is 1/4 of the selling price (Air made a profit of 1m on 4m), Cohort recorded the goods in the cost, ie. the selling price. So the unrealised profit should be 1/4 * 1,8 = 0,45.
What do you think?