Stay Clean

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

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November 28, 2016 at 4:15 pm #352200
lily1996
Member
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Hello John,
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?
Thanks
November 28, 2016 at 6:56 pm #352228
John Moffat
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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.
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