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Forums › FIA Forums › relevant costing
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
