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variable cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › variable cost

  • This topic has 3 replies, 2 voices, and was last updated 11 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
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  • November 21, 2014 at 8:19 am #211802
    fahad
    Member
    • Topics: 24
    • Replies: 113
    • ☆☆

    In Dec 2011 Kaplan mock , how is vc 1/3 of total unit cost when fc are being charge 200% of total unit cost? Q4 part a

    November 21, 2014 at 1:10 pm #211905
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54801
    • ☆☆☆☆☆

    Sorry, but I do not have the 2011 Kaplan Mock!

    (I hope you do realise that the real exam this time will be a different format and will have two sections – one with multiple choice questions)

    November 21, 2014 at 3:01 pm #211960
    fahad
    Member
    • Topics: 24
    • Replies: 113
    • ☆☆

    Yes I do realize that, but the part of question is 3 products ego bling and out have total unit cost respectively = 18 , 24 , 30 , fixed manufacturing oh are absorbed into unit costs by charge of 200% of VC so in the solution VC is being calculated by 1/3 of the total unit cost i.e 1/3 of 18 and so on , what would be the logic behind it ?

    November 22, 2014 at 10:05 am #212113
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54801
    • ☆☆☆☆☆

    If variable costs were 100, then fixed costs would be 200. So total costs would be 300, then therefore variable costs are 1/3 of the total cost.

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