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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › service costing
meter reading ,billing and collection
Company A Company B
total cost ($000) 600 1000
Units sold ( millions) 2880 9600
no.of consumers(thousands) 800 1600
Sales of electricity(millions) $18 $50
What do the figures given indicate? which company is more efficient/
Sir, can you please show me how to work out this question?
The most efficient company is the one that has the lowest cost per unit sold.
So divided the total cost by the number of unit sold 🙂