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Sir i Ace ltd question they said The budget for next year shows a loss is not relevant . Can you please explain why?
If a product was budgeted to lose $100 next year, would you stop producing it??
If you would, then you would be very silly if it was budgeted to make profit of $1M every year after next year!
It is as I answered you before – it is future expected returns that are relevant. Not simply next year.
Watch the lecture on life-cycle costing again.
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