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MA – Direct cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › MA – Direct cost

  • 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 14, 2022 at 11:54 am #660463
    ToanLMK
    Participant
    • Topics: 8
    • Replies: 9
    • ☆

    Hello sir, could you explain why the packing material is classified as Direct cost, I don’t understand that. Thanks in advance

    July 14, 2022 at 4:18 pm #660498
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54829
    • ☆☆☆☆☆

    It rather depends on the information given in the question.

    A direct cost is a cost that can be identified in each individual unit. So if (for example) each unit is packaged and the packing costs $2 for each unit, then the $2 is a direct cost.

    July 19, 2022 at 11:02 am #661287
    ToanLMK
    Participant
    • Topics: 8
    • Replies: 9
    • ☆

    You make it so clear, I understand now. Thank you so much, Mr.John

    July 19, 2022 at 4:30 pm #661332
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54829
    • ☆☆☆☆☆

    You are welcome 🙂

    (Are you watching my free lectures? They are a complete free course and cover everything needed to be able to pass Paper MA well.)

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘MA – Direct cost’ is closed to new replies.

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