Explain the meaning of relevant costs

Assignment Help Business Management
Reference no: EM133051474

URGENT! Can someone give me an answer to the below question (now)?

Case: A delivery truck in 85 Degree Bakery & Café, costing $100,500 and uninsured, is wrecked on its first day in use. It can be either (a)  disposed of for $18,000 cash and replaced with a similar truck costing $103,000 or (b) rebuilt for $88,500 and thus be brand new as far as operating characteristics and looks are concerned. 

Q1. Explain the meaning of "relevant costs" and identify those items that would be classified as "relevant" of each alternative.

Q2. Which action is less costly? Show your calculations. 

Reference no: EM133051474

Questions Cloud

What kinds of actions he can initiate : Xavier now wants to initiate legal action against these 7 company directors. Advise him on what kinds of actions he can initiate and describe these actions
Advaced operating system : Discuss and compare different file systems, in terms of Memory usage, process requirements, computational cost, system overhead, efficiency and reliability?
Compare software testing methods : Compare and contrast software testing methods. How would these testing methods apply to an autonomous [self-driving] vehicle?
Prepare the lease payments schedule for the lessee : Annual lease payment (payable in advance on 30 June each year) $41,500. Prepare the lease payments schedule for the lessee
Explain the meaning of relevant costs : Case: A delivery truck in 85 Degree Bakery & Café, costing $100,500 and uninsured, is wrecked on its first day in use. It can be either (a) disposed of for $18
What protocols comprise tls : What protocols comprise TLS? List and briefly define the SSH protocols. What is the purpose of HTTPS?
What is the vat payable : Input VAT related to gift shop and rental activities - P126,000; Input VAT related to not-for-profit activities - P 436,000; What is the VAT payable
Different challenges or barriers to innovation : Question: Discuss at least three (3) different challenges or barriers to innovation that a leader faces within teams and organisations
Prevention and response strategies : Present employee training recommendations for creating awareness of the organization's security measurements.

Reviews

Write a Review

Business Management Questions & Answers

  Describe the assumptions identified by jane vella

Describe the assumptions identified by Jane Vella, in her book, Learning to Listen, Learning to Teach, in her 12 principles.

  What are amazon major strengths

-Can any firm beat Amazon in the marketplace? If not, why not? If so, how can they best do so? How formidable a competitor is Google for Amazon? Please explain.

  Conducting elicitation activities with all stakeholder

You are a business analyst at a new company, and all of your stakeholders are located in different cities and are preparing for elicitation. Which three techniq

  Explain for each named defendant whether the court is like

In this case, list all the defendant(s) you would advise Sang to name in the lawsuit and explain why each defendant should be named? Explain, for each named defendant, whether the court is likely to find out the defendant liable and explain why/e..

  Objectives can be used to implement plans

Describe how management by objectives can be used to implement plans?

  What are privacy issues facing organization

What are privacy issues facing your organization? How should the organization handle those issues in terms of policies and procedures?

  What is the role of government in business

What is the role of Government in Business? Identify and explain the key roles Government plays for business in the Covid19 pandemic?

  Formalized operational drivers of corporate responsibility

Develop a plan on how to effectively embed 3 policies: protect the environment, health and fitness, and affordability that are to serve as the formalized

  Implications of creating a faculty union on campus

Prepare a letter to the editor of the local newspaper explaining the implications of creating a faculty union on the campus.

  State level court with jurisdiction

Can a civil lawsuit in the amount of $100,000 be brought in federal court or does it need to be under a state level court with jurisdiction?

  Required rate of return by common stockholders

If the required rate of return by common stockholders (Ke) is 17 percent, what is the price of the common stock

  Dictate the roles for men and women in the new world

How did their actions dictate the roles for men and women in the new world?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd