Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › F9 Course Notes, Practice Qs: 10 Glitter Railways
- This topic has 9 replies, 4 voices, and was last updated 9 years ago by John Moffat.
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- May 25, 2014 at 6:17 pm #170786
Hi,
Regarding practice qs stated: Why is the $200,000 increase for fixed overheads not included?
And also the $250,000 lost income from taking on the project not included?I assumed they were part of the calculation as they relate to the project? Or have I read something wrong..
May 26, 2014 at 6:06 am #170862Fixed overheads are only relevant if there are extra fixed overheads. So the $1M is relevant. However apportioning existing fixed overheads does not mean there is any extra cost and so it is not relevant.
The lost income is relevant and has been taken into account (towards the bottom of the answer to part (a) – ‘perpetuity of lost flows net of tax’)
May 26, 2014 at 1:36 pm #170923Ah, I read it in a different, but wrong way!
Thank you for explaining.
May 26, 2014 at 3:04 pm #170942You are welcome 🙂
April 7, 2015 at 3:39 pm #240416AnonymousInactive- Topics: 0
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Hi. How do I access the practice questions once I log in?
April 8, 2015 at 12:54 am #240463They are at the back of the lecture notes that are free to download (although there is no point in using the notes on their own – they are to be used with the free lectures).
There are only a few questions at the back and so you must by a Revision Kit from one of the ACCA approved publishers.
May 8, 2015 at 11:21 pm #244854Sir.. how the interest cost is saved by offering early sttlement discount?
May 8, 2015 at 11:28 pm #244856Because if we collect cash in sooner then we have more cash in the bank or a lower overdraft.
Have you watched the lectures on working capital? If you watch our lectures in order then you have a complete course of everything you need to pass F9.
May 8, 2015 at 11:56 pm #244857Ok sir thakyew .. I got it.. 🙂
May 9, 2015 at 9:24 am #244899You are welcome 🙂
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