ACCA

Relevant Costing

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ACCA PM — Performance Management Practice Exam 1

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Q6Medium2 marks·ACCA PM — Performance Management Practice Exam 1

Section A EventPro is quoting for a one-off festival. The project requires 500 kg of Material Z. EventPro currently has 300 kg of Material Z in inventory, originally bought for $10/kg. Material Z is in regular use by EventPro for other events. The current replacement cost of Material Z is $12/kg, and its scrap value is $8/kg. What is the relevant cost of Material Z for this one-off festival quote?

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