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Relevant cost (labour)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Relevant cost (labour)

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • October 6, 2021 at 4:09 pm #637145
    Joseph.Andrews
    Participant
    • Topics: 55
    • Replies: 27
    • ☆☆

    1) If labour has spare capacity
    [Relevant cost = 0]

    2) If labour has no spare capacity and we can hire more labour
    [Relevant cost = Labour cost + overtime premium]

    3) If labour has no spare capacity and we cannot hire more labour
    [Relevant cost = Opportunity cost]

    4) Opportunity cost is either [extra labour cost + lost contribution]

    October 7, 2021 at 9:05 am #637184
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    All seems correct!

  • Author
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