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Followup

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Followup

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • April 7, 2018 at 7:38 pm #445515
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    1) Sir if we use the formula VC divided by FC for calculating operational gearing, so here it means that operational gearing is directly proportional to VC and operational gearing is inversely proportional to FC. So it does means that greater the VC the greater the operational gearing and viceversa. And the greater the FC the lower the operational gearing and vice versa. Am I right?

    2) But if we use the formula FC divided by VC for calculating operational gearing, so here it means that operational gearing is directly proportional to FC and operational gearing is inversely proportional to VC. So it does means that greater the VC the lower the operational gearing and viceversa. And the greater the FC the higher the operational gearing and vice versa. Am I right?

    April 8, 2018 at 8:49 am #445593
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54806
    • ☆☆☆☆☆

    You are right on both counts, and again there is no standard measure for operating gearing.

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  • The topic ‘Followup’ is closed to new replies.

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