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service costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › service costing

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • February 6, 2018 at 7:25 am #435434
    Avatarmahjabeenmohidu
    Member
    • Topics: 7
    • Replies: 2
    • ☆

    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?

    February 6, 2018 at 8:54 pm #435554
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    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 🙂

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  • The topic ‘service costing’ is closed to new replies.

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