A company is bidding to win a special contract.

CIMA P1 Question Answer

Which of the following is NOT a relevant cost to the company of undertaking the contract?

The purchase cost of direct materials not currently in inventory.

The cost of hiring a machine which will be hired if the contract is won.

The cost of a training course for staff which will be undertaken if the contract is won.

The depreciation charge on the tools which will be used during the contract.

P1 PDF/Engine

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