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GH consultancy(Bpp)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › GH consultancy(Bpp)

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • February 26, 2016 at 1:57 pm #302169
    Avatarridwanulfirdous
    Member
    • Topics: 31
    • Replies: 30
    • ☆☆

    Sir this question says,they have agreed that this time(travelling) should be charged at one third of their normal hourly rate.In the solution when calculating weighted chargeable time they have done this way : 1417.5+(472.5/3) =1575 hours.
    I can not understand why they divide the travelling time by 3..! And again reaching the ‘hourly rate for travelling’ they divided the ‘hourly rate for productive client work’ by 3 !

    February 26, 2016 at 3:28 pm #302201
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    To be honest it is a rather silly question (and is not a past exam question).

    The reason that they have divided the travelling time by 3 is because it will only be charged at 1/3 normal rate.
    (300 hours at 1/3 rate will come to the same cost as 100 hours at the full rate)

    February 27, 2016 at 6:43 am #302273
    Avatarridwanulfirdous
    Member
    • Topics: 31
    • Replies: 30
    • ☆☆

    Ok sir..thank u.

    February 27, 2016 at 9:04 am #302300
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    You are welcome 🙂

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