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relevant costing

Forums › FIA Forums › MA2 Managing Costs and Finance Forums › relevant costing

  • This topic has 0 replies, 1 voice, and was last updated 11 years ago by maan87.
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  • May 19, 2014 at 8:50 pm #169557
    maan87
    Member
    • Topics: 119
    • Replies: 155
    • ☆☆☆

    Dear john sir, how r u? john sir r u ok? I’M worried about you beacause you r not replying me.

    Q# There is a offer of contract for which material is required. Material is available in inventory at a book value of $1000 although if it were to be used in the contract under consideration it would require modification at a cost of $100. There is no other use for the component held in stock. the alternative is to purchase a new component that is exactly what is required at a cost of $1050.

    What is relevant cost?

    Plz john guide me i could not understand it

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