Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Make or buy decision
- This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
- AuthorPosts
- May 2, 2016 at 5:25 pm #313373
Dear John,
I hope you are well
Im hoping you can advise me on variable cost query.
I was working through my bpp practice & revision kit and cannot understand why when calculating the cost of making, Heating and Power costs as well as machine costs were not included in the calculation.
H&P costs in the question it includes an apportionment which understandably should be excluded. But I don’t understand why the none apportioned directly incurred as production of items were not included?
Also with Machine costs – semi variable, my understanding is that only the Fixed costs which were identified should have been excluded?
I hope my explanation makes sense and you might be able to explain why this is the case?
Please let me know if I am not making sense and I will type in full extract.Many thanks
May 3, 2016 at 7:56 am #313459I cannot give you an answer without seeing the question.
You don’t need to type it all out – just tell me the number and name of the question (because I have the BPP kit). - AuthorPosts
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