Tramont Co (Pilot Paper) — OpenTuition Forums

IIvan10y ago

Sir, why did the examiner inflate by 9% variable costs starting from second year but not from the first year? Link to the question: https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/p4/exampapers/p4-pilot-paper.pdf Is it because it is written: "The following revenues and costs apply to the first year of operation" ? Thank you in Advance!)

John MoffatTutor10y ago#1

Yes - the figures given are the actual cash flows for the first year and therefore only inflate for the later years.

IIvan10y ago#2

Thank you, John!)) Another trick from the examiner...

John MoffatTutor10y ago#3

You are welcome :-)

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