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Transfer Pricing BPP revision kit q355

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Transfer Pricing BPP revision kit q355

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by IAW3005.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • November 19, 2024 at 2:50 pm #713357
    adithya15
    Participant
    • Topics: 3
    • Replies: 5
    • ☆

    The garden sheers have 0.4kg of high quality steel in the final product. the manufacturing process loses 5% of all steel put in. steel costs $4000 per tonne.

    whats the Material Cost Per Gardeen sheet?

    November 19, 2024 at 6:02 pm #713362
    IAW3005
    Moderator
    • Topics: 4
    • Replies: 1587
    • ☆☆☆☆☆

    The final product requires 0.4 kg of steel.

    Manufacturing process loses 5% of the steel:

    Required steel = 0.4 kg / (1 – 0.05) = 0.4 kg / 0.95 = 0.42105 kg (approximately).

    4000 per tonne, which is equivalent to 4.00 per kg (since 1 tonne = 1000 kg).

    Therefore, the material cost for the steel used in one garden shear is:

    Cost = 0.42105 kg × 4.00 = 1.6842 (approximately $1.68).

    Thus, the material cost per garden shear is approximately $1.68.

    November 21, 2024 at 5:14 am #713389
    adithya15
    Participant
    • Topics: 3
    • Replies: 5
    • ☆

    got it thanks sir!

    November 21, 2024 at 6:40 am #713394
    IAW3005
    Moderator
    • Topics: 4
    • Replies: 1587
    • ☆☆☆☆☆

    You are most welcome

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