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relevant cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › relevant cost

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.
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  • June 2, 2020 at 10:06 am #572575
    chandni24
    Participant
    • Topics: 25
    • Replies: 6
    • ☆

    hi sir my is question from bpp exam kit Q145 i don’t understand why the statement 2 is false and what are examples of financial factors are there in a telephone company.

    June 2, 2020 at 4:36 pm #572595
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54812
    • ☆☆☆☆☆

    Financial factors are things like the effect on the profit and the costs.

    The statement is false because although financial factors are important, they should always consider non-financial factors as well. I discuss non-financial factors in a later chapter of my free lectures (and they are important for the exam). In this particular situation it could be things like does moving men to work on the new contract affect the quality of existing work.

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