Ireland management accounting -short term decision making


Joined
Mar 16, 2020
Messages
2
Reaction score
0
Country
Ireland
A specialist machine would be required for 8 weeks for the freezer build. Preston have 4 weeks remaining on the 10 week specialist machine rental contract that cost €20,000. The machine is currently not in use. The machine can be rented for an additional 10 weeks at a cost of €18,000. The specialist machine can only be rented in blocks of 10 weeks.

Alternatively, a machine can be purchased for €200,000 and sold after the work on the freezer has been completed for €180,000.

my query is would the relevant cost be 20000 or 18000
 
Ad

Advertisements

kirby

VIP Member
Joined
May 12, 2011
Messages
1,822
Reaction score
241
Country
United States
Post belongs in Exams and Studying forum and subject to the policies there
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Ireland Mgmt Accounting short term decision making 0
USA Accounting term 5
USA Recording a short term loan against an endowment - NFP 4
Germany Pricing Decision 0
Short term or long term? 2
Short term and long term 5
Short term/long term 26
South Africa What makes accounting interesting for you? 2

Top