Relevant Cost of material Flashcards
1
Q
Relevant cost of using machines?
A
- repair cost arising from use
- Hire charges
- Any fall in resale value of owned assets from their use
2
Q
Irrelevant cost of using machines?
A
- Depreciation
- Historical cost
3
Q
Relevant information: Types of decision;
1. Special price decisions
A
once-off” orders
Extra capacity
Minimum price quotations for special orders:
= the total relevant costs
