A business has recently purchased a tonne of PVC material at a cost of £350. The material could be sold immediately for £320 or it could be used as a substitute for another type of material that costs £310 per tonne. The PVC material is in continuous use within the business and its replacement cost is £360 per tonne. What is the relevant cost of the material? Select one: a. £630 b.
A business has recently purchased a tonne of PVC material at a cost of £350. The material could be sold immediately for £320 or it could be used as a substitute for another type of material that costs £310 per tonne. The PVC material is in continuous use within the business and its replacement cost is £360 per tonne. What is the relevant cost of the material? Select one: a. £630 b.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A business has recently purchased a tonne of PVC material at a cost of £350. The material could be sold immediately for £320 or it could be used as a substitute for another type of material that costs £310 per tonne. The PVC material is in continuous use within the business and its replacement cost is £360 per tonne.
What is the relevant cost of the material?
Select one:
a.
£630
b.
£310
c.
£360
d.
£350
e.
£320
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