• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

shadow cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › shadow cost

  • 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
  • August 25, 2014 at 3:38 pm #192263
    josy87
    Member
    • Topics: 173
    • Replies: 215
    • ☆☆☆

    Sir
    In the example 3 concerning the shadow cost, the shadow price was 0 as it was already a slack of 5 units. But we happen to meet 10 units at the optimum point B, how much would be the shadow cost?
    I got
    E=11
    C=6S+9E
    =6S+11*9
    what next?

    I watched the lecture.

    August 25, 2014 at 4:11 pm #192268
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54720
    • ☆☆☆☆☆

    I assume you mean the shadow price of demand.

    It is impossible here to do it.
    There is only going to be a shadow cost for the two constraints that cross at the optimum point, which in this question is materials and labour.

    If, for example, the optimum point had been point C, then this is where the demand line crosses the material line. So the shadow cost of labour would be zero.
    To get the shadow cost of demand, you would calculate where E =11 and 2S + 4E = 80 and carry on as before.
    (But again in this question it is not possible, and it irrelevant)

    August 25, 2014 at 4:53 pm #192274
    josy87
    Member
    • Topics: 173
    • Replies: 215
    • ☆☆☆

    thanks Sir

    August 25, 2014 at 4:56 pm #192278
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54720
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • finance123 on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • Rashi@gupta on FA Chapter 4 Questions Accruals and Prepayments
  • natashad25 on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • finance123 on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)
  • finance123 on Investment Appraisal – NPV, IRR – ACCA Management Accounting (MA)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in