• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

Dec. 2007 q4 need help!

Forums › ACCA Forums › ACCA PM Performance Management Forums › Dec. 2007 q4 need help!

  • This topic has 3 replies, 3 voices, and was last updated 14 years ago by Anonymous.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • June 7, 2010 at 9:28 pm #44530
    amyacca
    Member
    • Topics: 2
    • Replies: 1
    • ☆

    in part B, in order to calculate incremental costs, need to calculate lost contribution per hour of labour used on new products.

    in the answer its (399800-199800)/2000=$100
    but 199800 its only include material cost.

    I thought when calculate contribution we need to reduce whole amount of cost which is 229800, Could anyone explain it for me? Many thanks,

    June 10, 2010 at 11:38 am #63651
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    The reason is that you are still using the labour (and therefore still paying for it).

    What you will lose is the revenue (3999800) but you will save on the materials (199800) which means the the net cost of ‘stealing’ the labour is 200000.

    You can get the same answer in two ways, either take the lost revenue less the material cost saved (which is what the answer does).
    Or….take the lost contribution (revenue less materials less labour) and add the labour (because you are still paying the labour).

    June 12, 2010 at 10:10 pm #63652
    amyacca
    Member
    • Topics: 2
    • Replies: 1
    • ☆

    Thanks for your answer, It’s clear now. Thank you!

    June 13, 2010 at 7:02 pm #63653
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 5
    • ☆

    but the material cost 199800……….where it comes from????

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • singhjyoti on Conceptual Framework – ACCA SBR lecture
  • John Moffat on Time Series Analysis – ACCA Management Accounting (MA)
  • azubair on Time Series Analysis – ACCA Management Accounting (MA)
  • Gowri7 on Relevant cash flows for DCF Working capital (examples 2 and 3) – ACCA Financial Management (FM)
  • Govere on The use of ratios and comparisons in auditing

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in