Hello Sir,
just wanted to ask you about the question no.2 as in my opinion the answer was 17000(500*10)+(1500*8).I am not getting the concept of 2000*10
as 500 units have to be purchased and inventory is to be used for the new work.Kindly explain.Thanks in advance
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chaper 9 of PM MCQ test question 2
6y ago#1The material in inventory is in regular use. Therefore if it is used in the contract it will need to be replaced and replacing it will cost $10 per kg.
This is all explained in my free lectures on relevant costing. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
thankyou sir
6y ago#3You are welcome :-)
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