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section c

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › section c

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
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  • June 19, 2021 at 7:39 am #625764
    xyzc
    Participant
    • Topics: 363
    • Replies: 130
    • ☆☆☆

    biscuits and cakes (6/12)

    For part d) of this question, should not the value of depreciation be deducted from divisional net assets when calculating the investment figure.

    June 19, 2021 at 7:49 am #625770
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51576
    • ☆☆☆☆☆

    The examiner has used the opening net assets for the calculation of the ROI on the basis that it is the net assets at the start of the month that generates the profit for the month.

    There are good arguments for using the closing net assets or the average net assets, but in the exam use opening net assets except where the question specifies different.

    June 19, 2021 at 8:05 am #625781
    xyzc
    Participant
    • Topics: 363
    • Replies: 130
    • ☆☆☆

    For part d) of this question, how to do the calculations. I have got a wrong answer.

    June 19, 2021 at 8:15 am #625784
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51576
    • ☆☆☆☆☆

    You have a printed answer so say which part of the answer you are not clear about – there is no point in me simply typing out the same answer 🙂

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