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relevent costs

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › relevent costs

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 19, 2014 at 9:39 pm #211459
    jingdong
    Participant
    • Topics: 89
    • Replies: 115
    • ☆☆☆

    Dear John, the question as shown as follows:
    material quantity required inventory value/kg realizable value replacement cost/kg
    W 500kg 0 – – 8
    X 500kg 300kg 5 3 7
    Y 500kg 400kg 8 9 11
    Z 100kg 100kg 10 12 15
    material Y is in regular use by the company. Materials X and Z are no longer in regular use. there is no alternative use for Material X but the 100kg of material Z could be used instead of 150 kg of material V on a different job. material V costs $9 / kg and there is currently none of this material in inventory.
    what is the relevant cost of these material for the job under consideration?
    the X which I did is that (300*3+200*7), but the answer is that (500*3), I don’t know why?
    many thanks

    November 20, 2014 at 4:11 pm #211646
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    You are correct for material X.

    It is in the BPP Revision Kit and it is a mistake in their answer (there are several mistakes in the Revision Kit this time, which is annoying – at least BPP has fewer mistakes than the Kaplan one!)

    November 20, 2014 at 6:27 pm #211717
    jingdong
    Participant
    • Topics: 89
    • Replies: 115
    • ☆☆☆

    thank you so much

    November 21, 2014 at 12:08 pm #211860
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
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