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Cost paper question no7(b) Wrong....

Kritesh Tiwari (CFP) (109 Points)

12 November 2009

this question is wrong ..as there mention in the quest about net of tax........

so this quest will be solved by incremental method.....

please friends ......give ur idea on this

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Kritesh Tiwari (CFP) (109 Points)
Replied 12 November 2009

Originally posted by :kritesh tiwari
"	this question is wrong ..as there mention in the quest about net of tax........ so this quest will be solved by incremental method..... please friends ......give ur idea on this	"

please read the question......n answer .. paper is uploaded ...

Attached File : 20 23 pcc costing.pdf downloaded: 222 times

Dhruv (Chartered Accountant) (308 Points)
Replied 12 November 2009

The question is not wrong, just that they haven't described the effect of tax shield on depreciation. Since effectively the question assumes everything is net of tax, so depreciation need not be taken separately, just the incremental costs and revenues.