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material waste / loss

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › material waste / loss

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by IAW3005.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 30, 2023 at 10:08 am #685453
    sooha
    Participant
    • Topics: 70
    • Replies: 82
    • ☆☆

    this is two difference cases, from different questions but i am confused regarding the way they calculate the waste or loss in material
    in the first multiplied it by 100/80 the second by 95/100 ?
    can you explain why such difference ?
    -Leather costs $10 per metre and two metres are needed for a complete chair although 20%
    of all leather is wasted in the upholstery process.

    Leather 2 metres × $10/mtr × 100/80 = 25.00

    -Steel: the shears have 0.4 kg of high quality steel in the final product. The manufacturing
    process loses 5% of all steel put in. Steel costs $4,000 per tonne (1 tonne = 1,000 kg).

    Steel (0.4/0.95 × $4.00) = 1.68

    thank you !

    May 30, 2023 at 5:47 pm #685515
    IAW3005
    Moderator
    • Topics: 4
    • Replies: 1604
    • ☆☆☆☆☆

    The first one says

    Leather costs $10 per metre and two metres are needed for a complete chair although 20%?of all leather is wasted in the upholstery process.
    That means that you loose 20% but you still need to have 2 metres at $10 at the end so you have to say
    Leather 2 metres × $10/mtr × 100/80 = 25.00

    Steel

    The shears have 0.4 kg of high quality steel in the final product. The manufacturing?process loses 5% of all steel put in.

    Steel costs $4,000 per tonne (1 tonne = 1,000 kg). So steel has to be 0.4kg @ $4 but you need to divide by 0.95 to get 0.42105 kg which you need because you loose 5% during the manufacturing. So you need 0.42105 kg so that you end up with 0.4 at the end.
    Steel (0.4/0.95 = 0.42105 × $4.00) = 1.68

    Both of them you are dividing!!

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