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Economics, Accounting & Business: Post your doubts here!

Anusuya

Anusuya

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Ques no. 4.
Can anyone explain me how are these questions solved?? After i go through the MS i get it. But then i come across similar questions I don't know :/
 

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U

unique111

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rupa said:
hey even i have doubt in this but can u explain me more clearly....pls it would surely help me pls.....
Click to expand...
For lamb, suppose qty is x. Then qty for beef= 2x
Similarly, as the question says the opportunity of producing a kilo of beef is 3 kilos of lamb, we assume if price for lamb is 1, then price of beef has to be 3.
Now, total expenditure for the production of lamb will be : P x Q which is 1x
And the T.E for beef will be 6x.
Hence, if the farmer focuses on lamb production he'll be maximizing revenue.

Hope it helps. :)
 
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rupa

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unique111 said:
For lamb, suppose qty is x. Then qty for beef= 2x
Similarly, as the question says the opportunity of producing a kilo of beef is 3 kilos of lamb, we assume if price for lamb is 1, then price of beef has to be 3.
Now, total expenditure for the production of lamb will be : P x Q which is 1x
And the T.E for beef will be 6x.
Hence, if the farmer focuses on lamb production he'll be maximizing revenue.

Hope it helps. :)
Click to expand...


Ohhhh okok thanks a lot....I understood....
I have another doubt too pls help me in that also na....
i have doubt in 24th question....how is it option B???and hoe to solve this kind of question....
http://papers.xtremepapers.com/CIE/... AS Level/Economics (9708)/9708_w11_qp_12.pdf
 
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rupa

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unique111

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rupa said:
Ohhhh okok thanks a lot....I understood....
I have another doubt too pls help me in that also na....
i have doubt in 24th question....how is it option B???and hoe to solve this kind of question....
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_w11_qp_12.pdf
Click to expand...
Index in the base year is 100.
The ratio given is the weight assigned.
Construct a table where weight is 2,1,4,3 and new index is 98, 104,110,100.
As it says price of food falls by 2%, so new index will be 98 for food and accordingly the rest.
Now calculate W x I for the four of them, calculate its sum (1040) and divide by sum of weight (10).
You get 104, and so the increase in the index will be (104-100 )/100 * 100% which is basically subtracting base year index i.e 100 from new one i.e 104. So the answer will be 4%.
 
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rupa

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unique111 said:
Index in the base year is 100.
The ratio given is the weight assigned.
Construct a table where weight is 2,1,4,3 and new index is 98, 104,110,100.
As it says price of food falls by 2%, so new index will be 98 for food and accordingly the rest.
Now calculate W x I for the four of them, calculate its sum (1040) and divide by sum of weight (10).
You get 104, and so the increase in the index will be (104-100 )/100 * 100% which is basically subtracting base year index i.e 100 from new one i.e 104. So the answer will be 4%.
Click to expand...


Thanks a lot
 
ktc

ktc

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In May/June 2013 P22, Q.2,

under additional information, it says items included in the inventory at cost $ 9500 were damaged and had NRV of $ 2000.
In the income statement, we value inventory at lower of cost or NRV value according to prudence right?

Then why is it given in part a) in the marking scheme to subtract $2000 ( the NRV ) from $ 9500 ( the cost) to get the value of inventory damaged? Shouldn't $2000 be the value of inventory damaged and not $7500?

http://maxpapers.com/syllabus-materials/accounting-9706/attachment/9706_s13_qp_22/

http://maxpapers.com/syllabus-materials/accounting-9706/attachment/9706_s13_ms_22/

_____________________

May/june 2013 P21 Q.1

e) someone please explain how the depreciation figure of equipment worth $66000 was calculated.

http://maxpapers.com/syllabus-materials/accounting-9706/attachment/9706_s13_qp_21/

http://maxpapers.com/syllabus-materials/accounting-9706/attachment/9706_s13_ms_21/
 
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