Installation:
A truck will need to be rented for $175 (including fuel) to deliver the components to the client. The company will use their own on-site generator for three 8-hour days. Their charge-out rate for the generator is $9.50 per hour, and it consumes $30 of fuel per day. They will also need to rent other equipment that costs $95 for the job.
What is the cost for installation that should be included in the quotation?
The correct answer was: 175 + (3*30) + 95 = 360
However, why don't we add the charge-out rate of the generator = 8*3*9.5 = 228. As this would be the benefit forgone by the company of not charging externally.
Ask the Tutor ACCA PM
Pre-mock exam Dec23 Q23
2y ago#1A charge out rate is the rate you must charge a client for an hour of generator. It will not be relevant to the question "What is the cost for installation that should be included in the quotation?”
You don’t include amounts that you are recharging the client for.
Okay, thank you!
By the way, is it compulsory to add comma to the answer for section A questions? For example, should I write 1000 or 1,000? Because in the pre-mock exam, I got a question wrong for not including the comma while some answers were still correct without it.
2y ago#3I would yes
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