Relevant costing

This topic has 3 replies, 2 voices, and was last updated 11 years ago by John Moffat.

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May 26, 2015 at 12:21 pm #249147
6shahir
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Under materials what do u mean by will be replaced and will not be replaced?
May 26, 2015 at 3:25 pm #249207
John Moffat
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If goods are being taken from inventory, then it is whether or not the goods taken will be replaced in inventory. (They will need to be replaced if the item is in regular use).
May 26, 2015 at 6:56 pm #249322
6shahir
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I dont understand this 🙁
May 27, 2015 at 7:40 am #249427
John Moffat
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Have you watched the lectures???

If it is in regular use then they are using it to make something else. If they want to carry on making the something else then they will have to replace the inventory that they have taken for the contract.
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