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Hello Sir!
Hope you are keeping well!
My question is from BPP revision kit start as follows:
Bridgewater Co provides training courses for many of the mainstream software packages on the market.
My question:
In part (b) how did they calculate the additional training cost and room hire ?
I dont understand where is the information about the rate is given ?
And how have they tackled delaying payment of trainers?Because of the note in the question headed ‘software training’, since the sales are up 20% then the training cost and room hire will both increase by 20% as well.
Apart from discussing the delayed payment it is irrelevant when forecasting the profits. Expenses are charged when incurred and not when payment is made.
Sir,
In my book this is written ” Assuming similar class sizes and the usual sales prices, extra sales revenue amounting to 20% of normal sales are
expected (measured before the voucher promotion above). The manager is keen to run these courses at the same tutorial and room standards as they normally provide. Software expenditure is written off in the income statement as incurred.
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Sir,
In my book this is written ” Assuming similar class sizes and the usual sales prices, extra sales revenue amounting to 20% of normal sales are
expected (measured before the voucher promotion above). The manager is keen to run these courses at the same tutorial and room standards as they normally provide. Software expenditure is written off in the income statement as incurred.Freedylegen: Why have you repeated Nikitagarwal’s post???
Nikitagarwal: Yes – that is what it written in my book (and in the real exam question) also!!
If sales increase by 20% and if they want to keep the same tutorial and room standards then they will have to have 20% more training and 20% more room hire.
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