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MATERIAL FLOW COST ACCOUNTING – MCQ

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › MATERIAL FLOW COST ACCOUNTING – MCQ

  • This topic has 2 replies, 2 voices, and was last updated 5 years ago by lishelle.
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  • Author
    Posts
  • November 27, 2019 at 10:51 am #553897
    lishelle
    Member
    • Topics: 2
    • Replies: 2
    • ☆

    Hello,

    I saw this MCQ question in BPP revision kit (Section A- 14 question)

    In MFCA, input manufacturing costs are categorised into material costs, waste treatment costs and which of the following?
    A – System costs and energy costs
    B – Positive products costs
    C – Negative products cost
    D – Positive product costs and negative products costs

    In the BPP the answer is D. But i am confused between A and D. could you tell me the correct answer and explain why?

    November 27, 2019 at 2:52 pm #553922
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54662
    • ☆☆☆☆☆

    I think BPP is mistaken here in that although we should take into account all product costs whether positive or negative, most writers on this regard system and energy costs as also being part of the manufacturing costs. (Which would make A and D both correct 🙂 )

    November 28, 2019 at 7:54 am #553979
    lishelle
    Member
    • Topics: 2
    • Replies: 2
    • ☆

    THANK SO SIR!! 🙂

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