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Problem in AMA

Final 205 views 5 replies

Guest

In least cost method if dummy row or column is inserted then how can cost is allocated? is dummy avoided ?

Replies (5)

Gnananandam

Student

74 Points Joined July 2010

The dummy is not to be avoided, we have to allocate the cost to the dummy as usual.

Guest

someone said that no allocation is made to dummy. as per his view dummy is allocated in the end.is he right?

I think he might be wrong...Dummy is to be allocated as usual. Plz refer Practice Manual 1st Question (page no.11.6); the question is solved by VAM, There is no special treatment for the Dummy: So the same treatment is applicable for least cost method also..

Gnananandam

Student

74 Points Joined July 2010

Hello madam... are u agree with my answer..??? Is there any doubt???

Guest

hello,. yeah I agree with ur point. actually I also agree with the solution given in P.M . I was confused because solution given my teacher was different.As per his opinion no cost is allocated to dummy in least cost method.