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Environmental cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Environmental cost

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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  • March 11, 2022 at 6:54 am #650967
    Anonymous11
    Member
    • Topics: 18
    • Replies: 15
    • ☆

    If varable cost of packaging is reduced from $8 per unit to $2 per unit how will it affect the following?
    1.) Life cycle cost per unit- INCREASE
    DECREASE. NO EFFECT

    2). Internal environmental cost- INCREASE. DECREASE. NO EFFECT

    3.)Total fixed production cost- INC. DEC. NO EFFECT

    4.)Extermal environment cost- INC. DEC. NO EFFECT

    5.) Selling price per unit- INC. DEC. NO EFFECT

    Thanks in advance

    March 11, 2022 at 8:11 am #650982
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers and explanations.

    Also, have you typed out the entire question? I ask because, for example, if the cost of packing is reduced then they could reduce the selling price, but that does not mean that they will reduce the selling price. It depends on their pricing policy.

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