PCC Costing Solution - MAy 2011

will lose 3 marks

I DONT THINK D ANSWER GIVEN BY MR. DAVE IS CORRECT AS WE HAVE TO CONSIDER ONLY VARIABLE COST WHILE CALCULATING INTEREST ON DEBTORS..... I TOO HAVE DONE D SAME THING PLZ CONFIRM......

THANKS

As per my knowledge to calculate the interest on Debtors Fixed cost and Variable Cost both sould be considered and as per the query i think you can expect 4 out of 8. But being practical you might get less than that because there would be mistakes in the step also. your total would be wrong, calculation of interest would be wrong, etc. Marks can be obtained if at all the invigilator thinks that your concept is right and you made mistake in Calculation. But in your case calculation is right but Concept is wrong. Dont want to de-motivate you. Hope you get more than 4.

IT IS PADHUKA BOOK MODEL AND IT HAS TO BE CONSIDERED BOTH FC+VC

Cost of investment in debtors is derived by adding both Fixed Cost and Veriable but it should not include bad debt, discount etc..

regards,

i agree with manthan as i did the same.

kindly confirm with valid reasons though.

thanks

paduka is bl**dy bullsh*t......

giving heart attacks to my dear friends......

plz dont follow dis book......

as per logic only variable cost gets stucked up in debtors in additional sales.....

so nw plz stop commenting on fixed cost part.....

paduka readers ........ jus f**k offf

and yaaa 1 more thing dont afraid smart students by using high funda languages ..... and plz be precise

Both VC/FC to be considered. FC upto the extent of a particular level of prod remains fixed