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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 4 months ago by John Moffat.
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  • February 25, 2022 at 2:37 pm #649337
    lokeshdh00
    • Topics: 100
    • Replies: 90
    • ☆☆

    Page no. 53 in examkit ( BPP )

    section C question – 164 Robber (6/12)

    Discussion is about relevant costing and making bad decisions but there is no hint of a relevant costing. The most obvious one is ,
    ‘One-off order / special order’.
    I did it, but found in answers I have to Ignore the fixed costs becz of relevant costing

    February 25, 2022 at 2:43 pm #649338
    lokeshdh00
    • Topics: 100
    • Replies: 90
    • ☆☆

    It says the price is guranteed for 2 years, so, Its nit just one off order, Robber would be Ordering for two years.

    – After reading solution, The Relevant costing does seem Right way to do it

    February 25, 2022 at 2:52 pm #649340
    lokeshdh00
    • Topics: 100
    • Replies: 90
    • ☆☆

    Also , In answer the assumption is made, That the fixed costs only arise when Production is made.

    While i was doing it, I didn’t made any much assumption, and added Some Fixed costs to “If we bought componants costs” which seems silly now.

    But, I Calculated the A) Wrong and found That i ranked The both products wrongly as my total saving was wrong. Would i get full marks for

    B) On my Calculated saving per unit ?

    February 26, 2022 at 10:55 am #649369
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49598
    • ☆☆☆☆☆

    You do not lose marks twice for the same mistake.

    So if you made mistakes in Part A then you would lose some of the marks for that part.

    However if you did Part B correctly using your figures from Part A then you would get full marks for Part B.

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