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P4: June 2008 past paper, Q # 5 Neptune:

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › P4: June 2008 past paper, Q # 5 Neptune:

  • This topic has 1 reply, 2 voices, and was last updated 14 years ago by John Moffat.
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  • May 24, 2011 at 6:04 am #48580
    Anonymous
    Inactive
    • Topics: 2
    • Replies: 0
    • ☆

    Adjusted Present value:
    Here fixed overheads was not part of the calculation, and in the question
    it was not mentioned that wthether the overheads are allocated or specific overheads,in the question 5%growing rate also provided which may be indicator of specific overheads bt in the examiner anwer the overheads was not inluded! why?

    May 29, 2011 at 6:28 pm #82231
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54751
    • ☆☆☆☆☆

    The question says that the overheads are activity based, which implies that the are allocated rather than specific. (The 5% does not itself imply that they are specific – existing overheads can be growing at 5%)

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