Activity based costing - Osborne Professional Dip synoptic Workbook, assessment 3, task 4
Oniyama100
Registered Posts: 7 New contributor 🐸
Hi there,
I am stuck on a question in the Osborne text, this is (Osborne Professional Diploma Synoptic Workbook, Assessment 3, task 4, p. 47). Screen shot of question attached.
The question is on ABC costing, and I have correctly got as far as:
£180,000/90 = £2,000 design/redesign costs per recipe.
Then, the answer does:
Soup: £2,000 / 24 days /1,000 litres x 100p = 8.33p
Can anyone tell me why this is multiplied by 100p??? I understand all the rest, but unsure what the logic is here. Anyone know what I'm missing here :-(
Same goes for next part of the question, answer is:
£2,000 / 300 days / 7,000 sausages x 100p = 0.10p
Please can anyone explain?
Regards,
I am stuck on a question in the Osborne text, this is (Osborne Professional Diploma Synoptic Workbook, Assessment 3, task 4, p. 47). Screen shot of question attached.
The question is on ABC costing, and I have correctly got as far as:
£180,000/90 = £2,000 design/redesign costs per recipe.
Then, the answer does:
Soup: £2,000 / 24 days /1,000 litres x 100p = 8.33p
Can anyone tell me why this is multiplied by 100p??? I understand all the rest, but unsure what the logic is here. Anyone know what I'm missing here :-(
Same goes for next part of the question, answer is:
£2,000 / 300 days / 7,000 sausages x 100p = 0.10p
Please can anyone explain?
Regards,
0
Comments
-
It's a conversion from pounds to penceAAT Level 4, MAAT
ACCA in progress
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Thanks @Pian32. I see the mention of it in the question now. It's a sneaky curve ball, I have never seen an AAT question expressed like this. Many thanks again!0
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