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Relevant Costing June 2009 Bits & Pieces

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Relevant Costing June 2009 Bits & Pieces

  • This topic has 3 replies, 3 voices, and was last updated 6 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • April 25, 2018 at 4:18 pm #448819
    Jivesh Seeam
    Member
    • Topics: 19
    • Replies: 6
    • ☆

    It has been agreed to pay time and a half to sales assistants that work on Sundays. The normal hourly rate is $20 per hour. In total five sales assistants will be needed for the six hours that the store will be open on a Sunday. They will also be able to take a half-day off (four hours) during the week. Staffing levels will be allowed to reduce slightly during the week to avoid extra costs being incurred.

    Sir, here the relevant cost of labour is 20×1.5x6x5x50=45,000..

    Why is it relevant when it has been said in the question that they will be given time off? That is there is no extra cost for the sunday opening for labour. If they work on Sunday, they are taking up 4 hrs off during the week. Nothing over and above.. pls explain

    April 25, 2018 at 6:04 pm #448839
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    Given the time off does not mean that they will not be paid for the time they are off 🙂

    The question says that staffing levels will be reduced during the week to make sure there is no extra cost, which again implies that they are given rime off but still getting paid for the time.

    January 26, 2019 at 3:57 pm #503333
    mdafzal1999
    Member
    • Topics: 6
    • Replies: 13
    • ☆

    This means that we say to them that you are allowed to take 4 hrs off a week. And we would also pay you for it??

    January 26, 2019 at 5:28 pm #503342
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    Read the first line of my earlier reply!!!!!

    Given the time off does NOT mean that they will not be paid for the time they are off ?

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Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Relevant Costing June 2009 Bits & Pieces’ is closed to new replies.

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