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Job, Batch & Service costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Job, Batch & Service costing

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 21, 2016 at 3:30 pm #297020
    Afrina
    Member
    • Topics: 26
    • Replies: 37
    • ☆☆

    Dear Sir,

    Hope you’re fine.

    I having confusion with a problem, so I need your kind help.

    Q: The following figures relate to 2 electricity supply companies.

    Co. A Co. B
    Total Cost ($000): 600 1000
    Units Sold (millions) 2880 9600
    No. of consumers (thousands) 800 1600
    Sales of electricity (millions) $ 18 $ 50

    The correct answer stated that Co. A is less efficient than Co. B.

    Ok, here’s my main problem:

    A: The explanation to this question:

    Co. A Co. B
    Cost per: $ $

    Millions of units sold 208 104
    Thousand consumers 750 625
    $ m of sales 33,333 20,000

    Sir, I want to know how the following figures were calculated which resulted into the figures above. Pls pls pls help me with the calculation.

    Thanks in advance.

    January 22, 2016 at 9:11 am #297120
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54833
    • ☆☆☆☆☆

    For company A, the cost per millions of units = 600,000/2,880
    The cost per thousand consumers = 600,000/800
    The cost per $m of sales = 600/18

    Same workings for company B 🙂

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    Posts
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