• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

relevant costing

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

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 9, 2021 at 6:32 pm #640312
    John1998m
    Member
    • Topics: 62
    • Replies: 36
    • ☆☆

    1) In relevant costing are we concerned about only incremental cost or do we also have to account for incremental revenue?

    2) Variable cost is relevant because it is a cost that varies according to the production level?

    3) Which of the fixed cost is relevant whether general fixed cost or specific fixed cost and what is the difference between both of them?

    4) It is also correct that General overhead is actually general fixed cost but not specific fixed cost?

    5) Is there any way specific way to calculate opportunity cost in paper PM? I don’t really understand what it is could you please explain in simple words?

    Thanks for your time I appreciate that….

    November 10, 2021 at 7:21 am #640336
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51543
    • ☆☆☆☆☆

    1. We are concerned with all incremental flows as as a result of doing to new work, both revenues and costs.

    2. True. If more work is done then there is more variable cost.

    3. General fixed costs stay the same in total whatever work is done. Specific fixed costs are only occurred if the relevant specific work is being done.

    4. Yes.

    5. An opportunity cost is the lost income as a result of doing new work. The calculation depends on the information in the question.

    Have you watched my free lectures on all of this?

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • shazleen on ACCA AB Chapter 10 – Management – Questions
  • John Moffat on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • John Moffat on Linear Programming – Maximum contribution – ACCA Performance Management (PM)
  • d.kabulova on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • alin.sivi on Linear Programming – Maximum contribution – ACCA Performance Management (PM)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy