Ireland Mgmt 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 the amount you recoup or 18000 the lease price
Thank you
 
Ad

Advertisements


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


Top