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Scrap value at 10%

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Scrap value at 10%

  • This topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • October 3, 2016 at 9:54 pm #342344
    jameshenry
    Member
    • Topics: 13
    • Replies: 10
    • ☆

    In a Kaplan question they work out the 10% loss on 13,200 units as 13,200 * 10/110 = 1,200 Units. However in your lecture the 10% would normally be worked out as say 10% of 3000, which is simply 0.10 * 3000= 300 units, but, using their manner you’d get 272 Units. I don’t understand why you’d do it their way as it gives the wrong value.

    Any ideas or I am missing something?

    Regards

    October 4, 2016 at 9:26 am #342358
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54693
    • ☆☆☆☆☆

    It depends whether the question says that the loss is 10% of the input, or 10% of the output.

    Without seeing the whole question I would assume that the input is 13,200 and that the loss is given as 10% of the output. In that case, for every 100 output the loss is 10 and therefore the input must be 110.
    Therefore the loss is 10/110 x the input.

    October 4, 2016 at 10:18 pm #342413
    jameshenry
    Member
    • Topics: 13
    • Replies: 10
    • ☆

    OK so 20% would be likewise 20/110 (.1818) 2400 and so on..makes sense to me, I just read a bit quickly and passed over 10% of “output” (not input) reference.

    Thanks

    October 5, 2016 at 2:35 pm #342463
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54693
    • ☆☆☆☆☆

    No – if it was 20% of output then the loss would be 20/120 times the output.

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