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Cost Card

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Cost Card

  • This topic has 5 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • January 18, 2020 at 6:12 am #558996
    iza1
    Participant
    • Topics: 115
    • Replies: 112
    • ☆☆☆

    In a cost card detail is given as 10litres of oil is needed costing $8 per litre
    And further says that during work 5% gets spilled

    To work out cost they have done 10litres * 8*100/95

    Now my understanding is that in order to have 10 liters we need to buy 10.5 as 0.5 gets spilled
    So cost will be 10.5*8=84
    But the answer key way gives answer as 84.21

    January 18, 2020 at 7:10 am #558999
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    The question does not say that 0.5 gets spilled. If they buy 10.5, then 10.5 x 5% will get spilled and that does not leave you with 10 litres.

    For every 100 bought, 5 will be spilled which leaves 95. Putting the other way round, for every 95 needed it means buying 100.

    Therefore if 10 are needed then they have to buy 10 x 100/95

    January 21, 2020 at 6:40 am #559350
    iza1
    Participant
    • Topics: 115
    • Replies: 112
    • ☆☆☆

    But sir if they say 5% gets spilled
    10*5% =0.5
    So if requirement is 10 I should buy 10+0.5
    That logic should be correct isn’t it

    January 21, 2020 at 8:28 am #559355
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    No, it is not correct.

    They lose 5% of whatever they buy.
    If they bought 10.5 litres then they would lose 5% x 10.5 = 0.525 litres and therefore would only end up with 10.5 – 0.525 = 9.975 litres, which is not enough!

    Read my previous reply again 🙂

    January 21, 2020 at 10:09 am #559371
    iza1
    Participant
    • Topics: 115
    • Replies: 112
    • ☆☆☆

    It does make sense yes.
    1/2 means every 2 has a 1
    Is that the same reason for 100/95
    Every 95 I need 100

    January 21, 2020 at 2:50 pm #559385
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    Correct 🙂

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