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Dec 2014 exam ,relevant costing question 3

Forums › ACCA Forums › ACCA PM Performance Management Forums › Dec 2014 exam ,relevant costing question 3

  • This topic has 5 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
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  • February 20, 2015 at 6:06 pm #229353
    alawi sayed
    Participant
    • Topics: 301
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    • ☆☆☆☆

    can you please explain in point no 2 the question clearly said the wanted quantity is 50 m not in square meters and the price was for square meters ,the available quantity was 20 square meters so logically the 20 square meters is enough to cover the 50 meters ,please clarify .

    February 21, 2015 at 7:32 am #229458
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    It was a typing error, but was very clear anyway because since the price is quoted at 8.20 per sq meter and the total cost had been included at $410, it must have been 50 sq metres that were needed. (Note 2 also makes this very clear).

    February 21, 2015 at 8:54 am #229465
    alawi sayed
    Participant
    • Topics: 301
    • Replies: 352
    • ☆☆☆☆

    Thanks John,

    What I did in the exam I considered that we need only 50 m so the available quantity is enough ,so the cost is the replacement cost of 50 m by converting needed quantity into square meters,

    February 21, 2015 at 9:24 am #229468
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    If that were the case then it would not have been costed at $8.20 to arrive at $410.

    February 24, 2015 at 5:19 pm #230028
    alawi sayed
    Participant
    • Topics: 301
    • Replies: 352
    • ☆☆☆☆

    Thanks John for clarification…but they should not make such a mistake it was a real confusion..

    February 24, 2015 at 5:25 pm #230030
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    I agree that they should check more carefully!

    (In future, if you have questions that you want me to answer then please ask in the Ask the Tutor F5 forum – this forum is for students to help and discuss with each other 🙂 )

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