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relevant costing

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

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • October 11, 2017 at 5:26 am #410286
    adarsh1997
    Participant
    • Topics: 646
    • Replies: 282
    • ☆☆☆☆

    I am referring to the following post:
    https://opentuition.com/topic/relevant-costing-68/

    1. Why $11,000 lost income is not an opportunity cost? If we replace it, we are loosing the chance of earning more money?

    October 11, 2017 at 4:48 pm #410388
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54704
    • ☆☆☆☆☆

    If we buy a new the machine that we will not be losing the income (because we will still have the old one) !!!

    October 24, 2017 at 6:14 pm #413074
    adarsh1997
    Participant
    • Topics: 646
    • Replies: 282
    • ☆☆☆☆

    I am still referring to the previous post.

    1. “If they take the machine for the new order, they have the choice of either replacing the machine and so paying $10,000”

    – If they take the machine, why they would need to replace it?
    If they use the machine they will not be able to earn an income of $11,000

    October 25, 2017 at 7:31 am #413123
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54704
    • ☆☆☆☆☆

    They would be silly not to replace it because they would be paying 10,000 so that they could continue to earn 11,000, which is worth doing.

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