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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..
Fixed 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’)
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Hi. How do I access the practice questions once I log in?
They 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.
Because 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.
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