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bpp revision kit query – Rotanola Co

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › bpp revision kit query – Rotanola Co

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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    Posts
  • October 20, 2016 at 7:22 am #345102
    amelia69
    Member
    • Topics: 25
    • Replies: 7
    • ☆

    Dear John, question 129 relates to the above case, how do I get the material cost $52?

    Many thanks.

    October 20, 2016 at 8:13 am #345117
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54744
    • ☆☆☆☆☆

    It is the expected value (have you watched my free lectures because expected values are covered in the lectures on risk and uncertainty? The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.)

    (0.6 x $50) + (0.3 x $60) + (0.1 x $40) = $52

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