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Life cycle costing – bpp q56

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Life cycle costing – bpp q56

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • July 22, 2021 at 11:39 pm #629153
    ythomas
    Participant
    • Topics: 16
    • Replies: 18
    • ☆

    Good evening sir,

    I have a question on life cycle costing in the BPP q56.

    I would like to know how the production and customer services costs is worked out?

    July 23, 2021 at 8:36 am #629182
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    The total cost each year is calculated by multiplying the number of units by the cost per unit.
    They are then all added together to get the total cost over the entire life.

    So for the production costs, the total is (5,000 x $80) + (10,000 x $40) + (25,000 x $30) + (10,000 x $30) = $1,850,000.

    It is the same approach for the customer services.

    July 24, 2021 at 12:22 am #629253
    ythomas
    Participant
    • Topics: 16
    • Replies: 18
    • ☆

    Thank you so much sir.

    You always feel like the answer is right in your face. After you’ve received help lol.

    July 24, 2021 at 7:17 am #629274
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Life cycle costing – bpp q56’ is closed to new replies.

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