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Page no. 53 in examkit ( BPP )
section C question – 164 Robber (6/12)
Discussion is about relevant costing and making bad decisions but there is no hint of a relevant costing. The most obvious one is ,
‘One-off order / special order’.
I did it, but found in answers I have to Ignore the fixed costs becz of relevant costingIt says the price is guranteed for 2 years, so, Its nit just one off order, Robber would be Ordering for two years.
– After reading solution, The Relevant costing does seem Right way to do it
Also , In answer the assumption is made, That the fixed costs only arise when Production is made.
While i was doing it, I didn’t made any much assumption, and added Some Fixed costs to “If we bought componants costs” which seems silly now.
But, I Calculated the A) Wrong and found That i ranked The both products wrongly as my total saving was wrong. Would i get full marks for
B) On my Calculated saving per unit ?
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