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

New! Lectures for ACCA AAA September 2022 Exams are now available >>

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

Target Cost gap

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Target Cost gap

  • This topic has 2 replies, 2 voices, and was last updated 8 months ago by John Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • October 25, 2021 at 5:23 pm #639089
    anniebabe
    • Topics: 32
    • Replies: 97
    • ☆☆

    Please can someone help me understand this question – many thanks.

    Product B expected selling price per unit $15.00
    Target profit 25% on cost
    Current cost $12.60 per unit

    what is the cost gap?
    answer 60 cents

    October 25, 2021 at 5:27 pm #639091
    anniebabe
    • Topics: 32
    • Replies: 97
    • ☆☆

    doesnt matter its the margin mark up thing isnt it
    i kept doing 15.00/100 – when it should be 15.00/125

    October 26, 2021 at 8:25 am #639116
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49602
    • ☆☆☆☆☆

    Yes, it is because the target profit is 25% of the cost and therefore the cost must be 100/125 x $15 = $12. (and, of course, it checks because the profit is 15 – 12 = $3, and this is 25% x $12 🙂 )

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on The Statement of Financial Position and Income Statement (part d)
  • Viktoriia.Yanchuk on The Statement of Financial Position and Income Statement (part d)
  • John Moffat on The management of receivables – Simple settlement discount – ACCA Financial Management (FM)
  • ty0311 on The management of receivables – Simple settlement discount – ACCA Financial Management (FM)
  • Manuga on ACCA AB Chapter 18 – The nature of communication – Questions

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy