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relevant costing

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

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by LMR1006.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 27, 2024 at 5:19 pm #708895
    bidada
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    A company purchased a machine several years ago for £79,000. Its written down value is now £37,000. The
    machine is no longer used on normal production work and it could be sold now for £8,000.
    A one-off contract is being considered which would make use of this machine for six months. After this time the
    machine would be sold for £6,000.

    What is the relevant cost of the machine to the contract?

    For my calculation will be the following:
    Sold now $8,000
    Cost of disposing $6,000

    relevant cost will be nil, is because relevant costing is excluding the loss of disposal. But it seems like the answer is wrong.

    July 27, 2024 at 5:47 pm #708896
    LMR1006
    Keymaster
    • Topics: 4
    • Replies: 1560
    • ☆☆☆☆☆

    What does the question say
    Where is it from
    What do you get as an answer?

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