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Q40 BPP Practice & Revision kit – Sept 15 – Aug 16

Forums › ACCA Forums › ACCA PM Performance Management Forums › Q40 BPP Practice & Revision kit – Sept 15 – Aug 16

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by abdulbasit16.
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  • December 5, 2015 at 4:31 pm #287893
    zohrah
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Hi,

    I’ve noticed quite a few mistakes in this BPP revision kit. In Q40 Stay Clean part B I can’t get the same answer as the book in the lost discount calculation. Instead of $1,063,158 for the current buying gross cost – I’m getting (Net cost $1,010,000 * Discount 1.05) $1,060,500? Maybe I’m calculating it wrong. Please help.

    Thanks.

    December 5, 2015 at 9:24 pm #288043
    abdulbasit16
    Member
    • Topics: 165
    • Replies: 154
    • ☆☆☆

    You cannot take 1.05, as it is a net amount and to get a gross your percentage should be less than or equal to 100%
    Moreover the percentage of a discount should be on actual amount(gross) so discount is 0.05 of gross amount. Therefore net amount is 95% of gross. Net amt. = 0.95x so net/0.95 is gross amount

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