MC Question 2
You will get this Formula Table at the exam so learn well how to apply it in your ACCA PM (F5) Exam
The Fruit Company (F Co) currently grows fruit which customers pick themselves from the fields before paying. F Co is concerned that a large number of customers are eating some of the fruit whilst picking it and are therefore not paying for all of it. As a result, it has to decide whether to hire staff to pick and package the fruit instead. The following values and costs have been identified:
(i) The total sales value of the fruit currently picked and paid for by customers
(ii) The cost of growing the fruit
(iii) The cost of hiring staff to pick and package the fruit
(iv) The total sales value of the fruit if it is picked and packaged by staff instead
Which of the above are relevant to the decision?
A. All of the above
B. (ii), (iii) and (iv) only
C. (i), (ii) and (iv) only
D. (i), (iii) and (iv) only