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Q Emcee Borrowing Costs

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Q Emcee Borrowing Costs

  • This topic has 3 replies, 2 voices, and was last updated 2 years ago by Stephen Widberg.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 2, 2021 at 10:14 pm #619482
    jareerabedin
    Member
    • Topics: 91
    • Replies: 72
    • ☆☆

    Dear sir,
    In this question, they are building a stadium. In the question they say that the cost of the building includes direct cost of 20m $ in February, and then 50m $ for the next 3 months until the end of may.

    The average cost of the building is calculated as:
    (20+70+120+170)/4

    Is this because in February, the cost of building was 20
    In march the cost of building was 70, in April the cost was 120 and in may the cost was 170.

    So therefore the average cost is the above equation mentioned. Am I correct? I am a bit confused
    Thank you

    May 4, 2021 at 9:55 am #619625
    Stephen Widberg
    Keymaster
    • Topics: 15
    • Replies: 3073
    • ☆☆☆☆☆

    You are correct – that is the logic that the question writer had in mind. (It’s a very ancient question).

    May 4, 2021 at 5:18 pm #619661
    jareerabedin
    Member
    • Topics: 91
    • Replies: 72
    • ☆☆

    Thank you!!

    May 5, 2021 at 11:06 am #619741
    Stephen Widberg
    Keymaster
    • Topics: 15
    • Replies: 3073
    • ☆☆☆☆☆

    My pleasure

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Q Emcee Borrowing Costs’ is closed to new replies.

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