Example 2 of Chap 9

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February 15, 2018 at 5:18 pm #437479
humai
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Sir, in example 2 of chapter 9, does the subcontracting cost of $32000 means the cost of diverting labour from their usual department?

2)The Bankoverdraft amount of $20000 is not relevant because the loan will be repaid at the end of 3 months , right? However the interest is an incremental cost and hence is relevant, Right?
February 16, 2018 at 8:00 am #437542
John Moffat
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Subcontracting is paying people from outside the company to do the work.

Correct about the bank overdraft 🙂

Have you watched my lecture working through this example?
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