relevant costing

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February 25, 2022 at 2:37 pm #649337
lokeshdh00
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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
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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
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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
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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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