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Relevant costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Relevant costing

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 30, 2020 at 3:56 am #597057
    Nikitagarwal
    Participant
    • Topics: 154
    • Replies: 147
    • ☆☆☆

    Hello Sir,
    Hope you are keeping well and safe!
    The question is from ACCA Portal :
    https://www.accaglobal.com/uk/en/student/exam-support-resources/fundamentals-exams-study-resources/f5/technical-articles/relevant-costs.html
    Example no 5 ..
    In this while making a production plan why did they added 7000 of revenue for A and if they are cinsiderng cost card then why wasnt the case with B as well ?
    Can you please explain ?
    Thank you so much in advance!

    November 30, 2020 at 10:20 am #597103
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54812
    • ☆☆☆☆☆

    It is not worthwhile doing extra processing on Product A and so it will be sold as it is for $7,000.

    It is worthwhile doing extra processing on Product B and so they will do the extra processing and then it will be sold for $15,000 (and not $4,000).

    November 30, 2020 at 3:09 pm #597158
    Nikitagarwal
    Participant
    • Topics: 154
    • Replies: 147
    • ☆☆☆

    Oh thats why… Got it now.. Thank you so much!

    November 30, 2020 at 4:57 pm #597174
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54812
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Relevant costing’ is closed to new replies.

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