Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

PQ Awards Nominations

Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

relevant cost

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

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 15, 2021 at 5:23 pm #637768
    shaunak22
    Participant
    • Topics: 218
    • Replies: 41
    • ☆☆☆

    why is finance cost not considered a relevant cost during investment decision making?

    October 16, 2021 at 9:39 am #637799
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51585
    • ☆☆☆☆☆

    When using the NPV criteria, the whole point of discounting is to account for the interest cost.

    To show it is a cash flow as well would be accounting for it twice.

    I explain this in my free lectures!

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.