relevant cost

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January 22, 2019 at 12:56 pm #503009
kennigara
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Hi my dear tutor, i have a question.
do we consider rental cost and lease pays as relevant cost or committed cost?
January 22, 2019 at 5:14 pm #503042
John Moffat
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It depends on what the wording of the question is.

If they are extra costs as a result of doing the new work, then they are relevant costs. If they are existing costs that do not change, then they are not relevant costs.
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