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Follow up ace ltd

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Follow up ace ltd

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • April 11, 2018 at 11:42 am #446159
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Sir i Ace ltd question they said The budget for next year shows a loss is not relevant . Can you please explain why?

    April 11, 2018 at 1:14 pm #446167
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54696
    • ☆☆☆☆☆

    If a product was budgeted to lose $100 next year, would you stop producing it??

    If you would, then you would be very silly if it was budgeted to make profit of $1M every year after next year!

    It is as I answered you before – it is future expected returns that are relevant. Not simply next year.

    Watch the lecture on life-cycle costing again.

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