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Mock test question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Mock test question

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • Author
    Posts
  • September 14, 2015 at 9:33 pm #271849
    yuliav
    Member
    • Topics: 1
    • Replies: 3
    • ☆

    Hi,

    I have done 20 questions test on your website. There is a question about relevant costing, unfortunately I could not copy and paste it but I will describe it the best I can:

    The company has been offered a contract, which requires 5000 hrs of labour. The labour is currently working on another contract generating contribution of £12. There is lot of idle time, labour is paid £8 per hour. What is the relevant labour cost for the contract?

    I believe that cost should be zero as there is some spare capacity, which is an idle time. However the correct answer is £40,000.

    Please could you explain why?

    September 15, 2015 at 8:12 am #271883
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Sorry, it is an error and the answer should be zero. The test has now been corrected.
    Thank you for pointing it out.

    (Incidentally, because the questions are selected at random from a large bank of questions, do try the test a few times – you are likely to get different questions each time 🙂 )

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    Posts
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