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Sir, help me please with correct understanding of two examples given in my Kit. I ‘ll try to explain in a way I understand them. Both are about relevant costing but the first asks to find relevant cost per kilo to be included into cost estimate for a tender and the second -to find relevant cost of the material for the contract.In the solution, for the first example they use as minimum cost as possible from several options and in the second the best alternative, that is they calculate using highest value. Is it because in first example it’s for tender and in the second for contract?the examples are long so I decided to explain in my words but if it’s necessary to write then I’ll write.
Thank you so much for your help.
It shouldn’t make any difference whether it is for a tender or for a contract. I really need to see the question to be able to help you – if it is in the BPP Revision Kit then tell me the name of the question (or if it is a past exam question then tell me the name and which exam).
Have you watched my lectures on relevant costing?Sir, I apologize, I have misunderstood the text in the second example.
Thank you. Will try to be more attentive next time.
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