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Relevant costs include...

A company needs 1103 units of material B1 to fulfill an order. The following information is available for material B1:

Quantity held in stock: 111

Historic cost: 8

Sales value: 8.5

Replacement cost: 14

Material B1 is frequently used by the business.

What is the relevant cost for material B1 to fulfill the order? Format: 10000.00

Historic cost is always irrelevant for future decision.

A company needs 1266 units of material A1 to fulfill an order. The following information is available for material A1:

Quantity held in stock: 366

Historic cost: 8

Sales value: 8.3

Replacement cost: 12

Material A1 is the result of an overbuying in the past and there is no other use for this material.

What is the relevant cost for material A1 to fulfill the order?

To be relevant to a particular decision cost must satisfy all of the following criteria:

A company needs 540 units of material C1 to fulfill an order. The following information is available for material C1:

Quantity held in stock: 441

Historic cost: 14

Sales value: 0

Replacement cost: 20

Material C1 is the result of an overbuying in the past and there is no other use for this material. This material is difficult to store and it will cost 335 to dispose oft the material currently held.

What is the relevant cost for material C1 to fulfill the order?

The term costs is just another term for payments and expenses.

A company needs 1421 units of material B1 to fulfill an order. The following information is available for material B1:

Quantity held in stock: 653

Historic cost: 9

Sales value: 7.6

Replacement cost: 13

Material B1 is frequently used by the business.

What is the relevant cost for material B1 to fulfill the order?