solution manual for management accounting for deci
management accounting for decision makers 10th edi
10th edition by peter atrill eddie mclaney
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Solution Manual for Management Accounting for Decision Makers 10th Edition by Peter Atrill, Eddie McLaney ISBN:9781292349459 ALL CHAPTERS COVERD
Solution Manual for Management Accounting for Decision Makers 10th Edition by Peter Atrill, Eddie McLaney All Chapters Covered ,Latest Edition, ISBN:9781292349459
Solution Manual for Management Accounting for Decision Makers 10th Edition by Peter Atrill, Eddie McLaney All Chapters 1 to 12 complete Verified editon ISBN:9781292349459
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Management Accounting for Decision Makers 10th Edi
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Instructor’s Manual
Management Accounting
for Decision Makers
The relevant cost of skilled labour as such is zero because the staff will be
employed and paid irrespective of the contract. However, if the contract is
undertaken, the business will lose sales in the alternative activity. The effective cost
of this will be the lost sales revenue net of the ‘other costs’ that will be saved, which
amounts to £32 an hour (that is, £24 £8). So cost is
27 hours £32 864
Semi-skilled staff are being paid anyway, so their wages are not relevant. The
additional cost to be incurred will be the wages paid to the unskilled labour taken on
to replace them. Thus:
14 hours £14 196
As unskilled labour will be specifically employed for the contract, the relevant hourly
wage rate is £14. Thus:
20 hours £14 280
General costs 250
The rental income forgone is a relevant opportunity cost. 175
The £300 already spent on the specialised study is a sunk cost and is not relevant.
The relevant cost is the forgone opportunity to sell the results: 250
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