# CMA Study Group

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## Acc receivables management p2 question

• #### 1.  Acc receivables management p2 question

Posted 5 days ago
If anyone can explain this , I'll be very thankful

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Sarah Mohamed Refaat Omar
Executive Officer
Cairo
Egypt
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• #### 2.  RE: Acc receivables management p2 question

Posted 4 days ago
Hi

Here you have to identify the incremental cost of purchasing one-time vs keep purchasing on a monthly basis and multiply by 9% (cost of capital).

You can do it in different ways:

1)
180,000 cases equal 6 months of 30,000 monthly purchases.

Cost of one-time purchase
180,000 * \$10 = \$1,800,000

Cost of 6 months monthly purchases
30,000 * 6 * \$12 = \$ 2,160,000

Incremental cost = \$360,000
Opportunity cost = \$360,000 * 9% = 32,400

2)
Incremental unit cost \$2 ( \$12 - \$10)

180,000 equals 6 months of 30,000 monthly purchases.

Incremental cost =180,000 * \$2 = 360,000

Opportunity cost = \$360,000 * 9% = 32,400

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Brian Ruskolekier
Controller
Buenos Aires
Argentina
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