Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › T/F question 121 in BPP P&R Kit
- This topic has 5 replies, 2 voices, and was last updated 1 month ago by John Moffat.
- February 4, 2023 at 6:17 pm #678340
Hope you can help please. I put False as i thought it would be “differential costs AND REVENUES between the two options”. The answer was True
“The relevant costs and revenues in decisions relating to the operating of internal services or the use of external services, are the differential costs between the two options”
Not sure what I am missing, Many ThanksFebruary 5, 2023 at 9:24 am #678351
I think we must have different editions of the BPP Revision Kit, because question 121 in my edition is not as you have quoted 🙁
Is the question related to make or buy decisions? If so the revenue will be the same whichever they do and it is only the costs that will be different.February 5, 2023 at 7:15 pm #678368
HI John, thanks. It asks whether the statement about short -term decisions is is true or false.February 6, 2023 at 8:11 am #678397
Well then it is certainly referring to make or buy decisions, in which case it is only the costs that will be different – the revenue will be the same whether they make themselves or purchase from elsewhere.February 6, 2023 at 8:36 am #678410
Great, thanks for this John. As always, really helpful.February 6, 2023 at 4:34 pm #678440
You are welcome 🙂
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