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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.pdfIs it because it is written: “The following revenues and costs apply to the first year of operation” ?
Thank you in Advance!)
Yes – the figures given are the actual cash flows for the first year and therefore only inflate for the later years.
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