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Question from December 2009 q5
I have an difficulties regards to why for the point 5 rental is not considered as opportunity cost to the stay clean company if decide waiting for 12month?
Opportunity cost is it only apply to those resource like material and labour?
since rental is consider fixed cost so not relevant?
But the answer has considered it as a cost.
Whether you use the first approach in the examiners answer, or whether you use the alternative approach that is given, in both cases the 12,000 lost rental is included.