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Q10 Macaljoy (12/07)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Q10 Macaljoy (12/07)

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by MikeLittle.
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  • November 3, 2013 at 4:40 pm #144456
    hasanali95
    Member
    • Topics: 239
    • Replies: 248
    • ☆☆☆

    In part b ii) of this qs the requirement is to calculate the warranty provision
    The std warranty units are 2000
    And extended warranty units are 5000
    So why have they taken 7000 units in the 1st yrs provision
    Then 5000 units in the 2nd yrs provision?

    Pls see the qs Macaljoy(12/07)

    November 7, 2013 at 3:57 pm #144851
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23365
    • ☆☆☆☆☆

    Because, in the first year, 7,000 units could potentially claim under the warranty whereas in the second year, only 5,000 units carry that extended 2 year warranty

    OK?

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