Hello Sir,
Hope you are keeping well and safe!
The question is from ACCA Portal :
https://www.accaglobal.com/uk/en/student/exam-support-resources/fundamentals-exams-study-resources/f5/technical-articles/relevant-costs.html
Example no 5 ..
In this while making a production plan why did they added 7000 of revenue for A and if they are cinsiderng cost card then why wasnt the case with B as well ?
Can you please explain ?
Thank you so much in advance!
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Relevant costing
5y ago#1It is not worthwhile doing extra processing on Product A and so it will be sold as it is for $7,000.
It is worthwhile doing extra processing on Product B and so they will do the extra processing and then it will be sold for $15,000 (and not $4,000).
Oh thats why... Got it now.. Thank you so much!
5y ago#3You are welcome :-)
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