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Q1 June 15 exam

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Q1 June 15 exam

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  • May 22, 2019 at 1:42 pm #516858
    mks2016
    Member
    • Topics: 19
    • Replies: 10
    • ☆

    Hi,

    I don’t understand the working for variable costs for year 1 onwards how do they get 19,471?

    Thanks

    May 22, 2019 at 3:09 pm #516883
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54513
    • ☆☆☆☆☆

    According to the question, the current variable costs are YR15,960 and they are to increase by the country’s annual inflation, which is 22% in the first year.

    15,960 x 1.22 = 19,471

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