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# ACCA Questions and Answers (Q&A)

John Smith
\$160,000

Variable Cost/Unit: [(170,000-5,000) - 135,000] / (22,000 - 16,000) = \$5 Total Fixed Cost (below 17,000 units): [135,000 - (16,000 x 5)] = \$ 55,000 Total Cost for 20,000 units:...Read More

502 views
Y. Dawne, Content Blogger
1,461. (2x20 x (4x20,00)/Co.06x25^0.5=1,461 Units. In marketing, carrying the cost of inventory or holding cost refers to the total cost of holding inventory, which includes cost such as rent...Read More

455 views
Wyatt Williams
EOQ: Lower, Annual Holding Cost: Lower

346 views
John Smith
35.7%

During the year the number of employees fell by 80 60 = 20. 45 employees had left, and so 45 20 = 25 were replaced. The average number of employees was (80 + 60) / 2 = 70. The...Read More

313 views
Wyatt Williams
1,461

{[ 2 x 20 x (4 x 20,000)] / [0.06 x 25]}^0.5 = 1,461 units

303 views
Ronnie.chine
Products should be discontinued if there is a target cost gap.

Products should be discontinued if there is a target cost gap For services that have a large fixed cost based, other...Read More

293 views
Konstantin

1,700units

{[ 2 x 10 x (15,000)] / 0.10]}^0.5 = 1,732 units

281 views
Ronnie.chine
ABC recognises the complexity of modern manufacturing by the use of multiple cost drivers
ABC establishes separate cost pools for support activities

268 views
Ronnie.chine
Set-up costs
Raw material handling costs

The correct answers are: Set up costs. Raw material handling costs. These two costs are likely to increase, as batch sizes get smaller....Read More

267 views
John Smith
The company will minimise its total annual costs if it takes the larger order discount and purchases in quantities of 5,000 units per order.

EOQ = {[ 2 x 500 x 10,000] / 2.5]}^0.5 = 2,000...Read More

243 views
SarBobBear
Have the contractual capacity to make the contract
Have been in existence both when the contract was made and at the date of ratification
Be identified when the contract is made

241 views
Ronnie.chine
Unless output capacity is greater than sales demand, there will always be a binding constraint.
The production capacity of a bottleneck resource should determine the production schedule for...Read More

229 views
John Smith
97.2%

Actual output = 2,100 units. Capacity = 15 employees x 36 hours per week = 540 hours. These two measurements need to be put on to the same basis, hours or units. Actual output of...Read More

227 views
John Smith