- This topic has 1 reply, 2 voices, and was last updated 2 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Shadow price
Hello
in this question why the correct answer is A?
The shadow price of skilled labour for CBV is currently $8 per hour.
What does this mean?
A. Contribution will be increased by $8 per hour for each extra hour of skilled labour that can be obtained
B. The cost of obtaining additional skilled labour resources is $8 per hour
C. Total costs will be reduced by $8 for each additional hour of skilled labour that can be obtained
D. There is a hidden cost of $8 for each hour of skilled labour actively worked
‘A’ is the standard way that the shadow price is always calculated.
Do watch my free lectures on linear programming where I do explain this, with examples.
The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.