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