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Understand question 7 in chapter 9 question 3 states in the question that the total cost to Coal Ltd for providing the support service is £300,000. However in the answer it has this down as £300,000 per year. I am not sure how this is worked out or is it a mistake in the book?
Started by Christina Carlon in
by Christina Carlon
Apr 8 2015 7:22PM
This may sound like a very stupid question, but I have been working my way through the C01 Study text and are a little bit baffled by something I have come across. Any suggestions or explanations much appreciated-
On p76 a formula is provided for apportioned costs which is:
Total Overhead Cost/Total value of Cost Apportionment base x Value of apportionment base of the cost centre being
We are told that the total overhead cost we are working with is the depreciation apportioned to the machining cost centre and is $16,700.
I am fine with that but, the total value of apportionment is said to be $1,670,000. How is this worked out? I have looked through the example and cannot get to this total. Please could someone tell me how this figure is worked out?
Started by Shabana Baz in
by Shabana Baz
Mar 21 2015 4:45PM
is it me or is the answer wrong in the book? they have got the machine value as (275000) but as far as I can see it is (300000). am I going mad?
Started by Odette gould in
by Odette gould
Mar 19 2015 7:38PM
How does the Perpetuity formula work? I don't seem to understand it.
For example if X has a choice of receiving $5,000 now or an annual amount forever and assume interest rate is 8%.What would be the annual perpetuity in $?
Whats the answer can anyone help?
Started by Mohammad Sameja in
by Mohammad Sameja
Mar 13 2015 6:49AM