CIMA Fundamentals of management accounting BA2 Question # 3 Topic 1 Discussion

CIMA Fundamentals of management accounting BA2 Question # 3 Topic 1 Discussion

BA2 Exam Topic 1 Question 3 Discussion:
Question #: 3
Topic #: 1

Each finished carton of product P contains 15 litres of liquid L. During the production process there is an unavoidable loss of 20% of the liquid input. The standard price of liquid L is $2 per litre.

The standard ingredient cost for liquid L shown on the standard cost card for one carton of product P will be


A.

$18.75


B.

$30.00


C.

$36.00


D.

$37.50


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