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Hi Sir,
I am struggling with the Relevant Question Stay Clean, BBP Kit 37 or 206 Kaplan.
I don’t understand that figure (17,500)DW, (30,000)WM, (60,000)TD are appearing in the Supplier payments as “the Loss of related sales at cost” and second time in the calculation Lost discount as ” Saved Cost”. Do we need calculate both?Next question, BBP Exam Kit calculates only the Lost Discount calculation figure $19,000.,
there is no Supplier payment calculation. However, in the Kaplan Kit, they calculate both.
I am asking, does it imply that I can choose at the exam for only one calculation and be correct?Sir, I am referring the BPP kit F5 – for exams up to June 2014. And Kaplan Kit – for exams up to 31.8.2015.
Thank you for your answer.I do not have the Kaplan Kit.
I do have the BPP Revision Kit, but only the current edition, where they have shortened the question from the original because of the new format of the exam.However, you can show the calculation in either of two ways (and the examiners own answer to the original question showed both alternatives).
You would get full marks whichever of the two ways you chose (provided obviously that the net cash flow at the end of $69,700 was correct 🙂 )Hey Sir
Question 4 on short term decision,practice questions.Why didnt we just dispose off the material at scap value since it does not have an alternative use:2000kg ×€9=18000.
please make me understand situations where we have to use the formula you used to find €18500 and where we just have to dispose it right off…since in both cases they have no alternative use’
THANKSIt is not a question of using a formula.
The question says that they need 2,000 kg, but they only have 1,500 in inventory.
The 1,500 in inventory has no other use and so is at $9 per kg.. However the other 500kg needed will have to be purchased (at $10 per kg) because there is not enough in inventory.
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