Short-term Decision making - Relevant Costing - ACCA Performance Management (PM)

[@blackm9063]

Great Job and thank you very much 👏

[@saifahmed7347]

And one thing more ,does acca cancelled its exams which were going to be held on June and will be conducted in September

[@opentuition]

The June exams are cancelled in most countries and so the next exam session will be in September. The list of cancelled countries is on the ACCA website and you should have received an email from them.

[@user-up7mm4ts1s]

Thank you so much.

[@ahmadbalba7732]

for note number 4 why didn't we calculate the depreciation , simply if the machine was not performing it's normal job (not the one off) would we calculate the depreciation ? I think it's no so the machine is performing for the one time job so I thought that the whole depreciation of $2800 would be add , isn't that right ?

[@opentuition]

The depreciation is a period cost and will be charged anyway. In addition it is purely an accounting figure and doesn't involve paying any more cash.

[@ahmadbalba7732]

@@opentuition so isn't the depreciation is the cost of activating the machine , I mean of the machine is not used, there will be no depreciation

[@opentuition]

@@ahmadbalba7732 There will be depreciation whether or not the machine is being used.

[@alanrobert2478]

Hi there, I need some clarification in regards to Opportunity Cost. Supposed we taking on a new job and we pausing an old job; not giving it up. Once we complete the new job we go back and complete the old job. Does this still count as an opportunity cost?

[@opentuition]

If any income is lost as a result then this would be an opportunity cost. If income is not lost then there is no opportunity cost.

[@alanrobert2478]

@@opentuition Thank you :)

[@opentuition]

@@alanrobert2478 You are welcome :-)

[@sharoonsalim7081]

Great lecture very helpful. Just one question though which book do you make use of for the lecture when attempting questions as examples?

[@opentuition]

As is stated at the very start of each lecture, we are using our lecture notes and they can be downloaded free of charge from our website.

[@sharoonsalim7081]

@@opentuition Thank you for your comment sir ill be sure to download those.

[@LovethElektra]

Thank you very much sir...my only question is regarding machine overhead, I was wondering why the cost of a total 6000 hours was added to the relevant cost together with the opportunity cost of 4000 I had thought it would just be a fixed cost of 4000 hrs 12000 + 4000 extra cost to get the relevant cost for machine overheads 🤔

[@opentuition]

Our tutors do not monitor KZbin posts. If you wish for our tutor to answer then please post your question in our free Ask theTutor Forum for Paper PM on our free website. Our tutors always answer questions within 24 hours if posted in our Ask the Tutor Forums :-)

[@zaynaameliakhan]

Is fixed overheads irrelevant whereas variable overheads are relevant?

[@movietimeprime7628]

sir how do we get 6000 X $3 for electricity costs as there are 4000 spare hours wont it be 2000 X $3 for electricity costs as 4000 are spare we will pay for pay for overhead for 4000 spare hours we use it or not for contract .

[@juniortheone6034]

Please reply to this, Sir.

[@Nyarie9904]

Take it this way: We get 4000 hours from the first machine cost is $12000(4000* $3 per hour) We get the remaining 2000 hours from the other machine and we will still pay $3 per hour costing us 6000(2000*$3) So machine costs in total =18000 plus the contribution ($2*2000)we are losing for taking off the other job.

[@movietimeprime7628]

@@juniortheone6034 i have passed . Goodluck to you on this .

[@Nyarie9904]

The machine overheads are variable if we do not produce anything there are no costs at all. So now that we are using the spare 4000 hrs for the special order we should pay