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