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Hello,
In question number 69, under specialist cost and management accounting techniques, I am a little confused on the answer.The question asks what is the total activity based allocation of production overheads for production of CB, the answer includes only the allocation for production costs. Should it not also include the allocation for production set up costs, as it is also a production overhead?
Yes it should.
The question should have asked for the allocation of “Production costs” rather than “Production overheads”.
(The original exam question was a Section C type question and wanted all of the overheads allocated. BPP have converted it into a Section B question (because it cannot now be asked in Section C) and have not been careful enough in their wording.)
Thank you so much for getting back to me on this!
I was pulling my hair wondering what I was not understanding in the question, now I feel a lot more relived.Thank you for all of your help and incredible lecture notes and lecture videos that have made studying so much more easy to comprehend.
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