Flashcards
Relevant Costing
Cards in this deck (5)
- 1What is not included in avoidable costs?Fixed costs!
- 2What are the benefits of making your own product as opposed to ordering it from someone else? (3)1. Employees keep their jobs
2. Utilising our capacity
3. Retain control over all aspects of production - 3Why is it a high risk situation when you charge customers different amounts?You will want other customers wanting the same deal.
- 4If CM > Op Cost =Accept
- 5If CM < Op Cost =Reject