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Hello Sir,
Regarding the example 1 in chapter four of the the notes ,regarding the ordering and holding costs of the inventory.The question asked for the cost of inventory but here we are not trying to calculate the whole cost of the inventory only with regard to ordering and holding cost,but not the cost that will be in the ledger of the inventory or financial statements, i.e not including the purchase cost of the inventory.
is that okay.
Thanks,
We are certainly not interested in what will appear in the financial accounting records – this is a financial management exam.
As regards whether or not to include the purchase price in the calculation depends on the exact wording of the question in the exam.
(I do assume that you are not using the notes on their own but are also watching the lectures that work through the examples in the notes. Using the notes on their own is a waste of time because they are not a Study Text and it is in the lectures that I explain and expand on the notes. If you are not watching the lectures for any reason then you need to buy a Study Text from one of the ACCA Approved Publishers and study from there. However you choose to study, it is essential that you buy a Revision Kit from one of the ACCA Approved Publishers because it is full of past exam questions for practice after you have finished studying, and practice is vital to passing the exam.)
Hello Sir,
I always watch the lectures and sometimes I watch them again and again if need to do so,
I got what what you mean that it depends on the the question if it wants the full cost or only the ordering and holding costs.
Thanks,
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