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Relevant Costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Relevant Costing

  • This topic has 1 reply, 2 voices, and was last updated 9 months ago by John Moffat.
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  • September 21, 2021 at 12:27 am #636078
    Lulu89
    • Topics: 3
    • Replies: 1
    • ☆

    Relevant costs are the cost related to a specific project to be undertaken but I’m having challenges deciding the relevant cost of assets paid in installments..
    Is the total cost of the asset relevant?
    Or is the first payment relevant and the further installments irrelevant by virtue of turning into committed costs??

    Thanks for the help in advance!

    September 21, 2021 at 7:32 am #636094
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49595
    • ☆☆☆☆☆

    It depends on the exact wording of the question but in any normal situation the total cost is relevant whether or not it is paid in instalments.

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