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Forums › ACCA Forums › ACCA PM Performance Management Forums › Relevant Costing
Studley Co. Purchased a Machine 3 years ago for $ 15,000. It can be sold now for $ 9,000. The current replacement cost of an equivalent machine is $ 14,000. If studley Co keeps the machine for use in the business it is expected to generate net income $ 17,000.
What is the replacement cost of the Machine?
Please make it clear as I’m confused regarding relevant costing of Non-Current Asset
In future you must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
The replacement cost is the cost of buying a new machine.