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A company is considering the use of Material V in a special order.

A company is considering the use of Material V in a special order.

The material is used regularly and a sufficient quantity of the material is in inventory.

It could also be sold, at just below the current market price, to a local competitor.

What is the relevant cost of Material V to be used in the special contract?

A.

The replacement cost of the material.

B.

The resale value of the material.

C.

The historic cost of the material in inventory.

D.

Nil

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