CIMA Management Accounting P1 Question # 69 Topic 7 Discussion

CIMA Management Accounting P1 Question # 69 Topic 7 Discussion

P1 Exam Topic 7 Question 69 Discussion:
Question #: 69
Topic #: 7

RST is preparing a quotation, on a relevant cost basis, for a special order.

Which TWO of the following are relevant costs that should be included in the quotation?


A.

$2,000 disposal costs which would be saved when obsolete materials are used for the special order.


B.

The cost of a manager who is seconded from a different division to manage the special order. The manager is paid a fixed salary.


C.

Depreciation charges relating to equipment that will be used on the special order.


D.

The reduction in the resale value of machinery, due to be sold immediately, but now to be used to produce the special order.


E.

The cost of materials, as determined by the inventory system, that are currently in inventory but are used regularly on other products.


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