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Further processing decision

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Further processing decision

  • This topic has 1 reply, 1 voice, and was last updated 2 months ago by LMR1006.
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  • March 4, 2025 at 9:49 am #715801
    ashiswar1003
    Participant
    • Topics: 30
    • Replies: 11
    • ☆

    Hlo sir
    In the question of further processing decision, If there is loss during the process then the sales units after further processing will be impacted but the units of incremental cost isnot impacted yeah sir
    Please do reply fast
    Exam is tomorrow

    March 4, 2025 at 12:46 pm #715810
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1480
    • ☆☆☆☆☆

    So if there is a loss during the process, the sales units after further processing will indeed be affected. However, the units of incremental cost remain unchanged. Incremental costs refer to the additional costs incurred as a result of the decision to further process the product.
    Therefore, while the sales revenue may decrease due to losses, the incremental costs associated with that decision do not change.

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