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LIFE CYCLE COSTING

This topic has 5 replies, 3 voices, and was last updated 8 years ago by John Moffat.

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November 30, 2017 at 8:21 pm #419254
sheri12
Member
- Topics: 19
- Replies: 15
ACCA JUNE 16
SHOE CO
In the calculation of lifecycle cost do we include opportunity cost or not?
Its stated in question that “Company missed out an opportunity of earning $800,000 from the sale of another product”
December 1, 2017 at 2:47 am #419294
hammad7867
Member
- Topics: 2
- Replies: 2
Yes opportunity costs are included
December 1, 2017 at 6:41 am #419320
sheri12
Member
- Topics: 19
- Replies: 15
@hammad7867 in Kaplan kit they ignored this opportunity cost in the calculation !
December 1, 2017 at 8:08 am #419350
John Moffat
Keymaster
- Topics: 57
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Hammad: Please do not answer in this forum – it is Ask the Tutor, and you are not the tutor.
Sheri: Opportunity costs are NOT included in lifecycle costing – only in relevant costing questions.
December 1, 2017 at 1:49 pm #419417
sheri12
Member
- Topics: 19
- Replies: 15
Thanks a lot Sir ! @John Moffat
December 1, 2017 at 3:00 pm #419439
John Moffat
Keymaster
- Topics: 57
- Replies: 54829
You are welcome 🙂
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