- This topic has 1 reply, 2 voices, and was last updated 10 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Dec 2011 Q1
For point 7, why is there an opportunity cost of 3000? If we keep the machine and use it we can’t sell it immediately but can’t we just sell it at a later date? We are not told otherwise. Maybe it will be worth a bit less than 3000 but we will not lose out on the proceeds of the sale, regardless?
If we did not do the work then we would sell the Swipe and get $3,000.
If doing the work means that we cannot sell the Swipe, then we are losing $3,000 that we could have received – an opportunity cost.
If we do use it in the work, then we cannot sell it at a later date – it is used in the system that is sold to the customer and so it would no longer be ours to sell.