Tutor profile: Kenneth K.
Subject: Study Skills
Many people would be interested to know how I passed my ACCA papers on the first attempt.
There are no shortcuts. To be ready for an ACCA exam, much preparation is required. The key is to be consistent and study bite sized bits of information regularly, optimally on a daily basis.
What are the adjustments to cost of sales if closing inventories are understated by 100?
Cost of sales = Opening inventories + Purchases - Closing inventories. Dr closing inventories 100 (balance sheet item) Cr cost of sales 100 (p/l item)
What is the profit maximising condition?
When marginal cost = marginal revenue. To get marginal cost, differentiate total cost w.r.t. price or quantity, and to get marginal revenue, differentiate total revenue w.r.t. price or quantity. This gives you the profit maximising price or quantity. Next substitute the profit maximising price or quantity into the total revenue or total cost equation respectively.
needs and Kenneth will reply soon.