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In considering a special order situation that will enable a company to make use of currently idle capacity,

<p> which of the following cost will be irrelevant:</p> <p>(a) Materials</p> <p>(b) Depreciation</p> <p>(c) Direct labour</p> <p>(d) Variable factory overhead</p> <p>(e) None of these</p>

Budgeting Financial Management Finance
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تم إضافة السؤال من قبل Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh
تاريخ النشر: 2014/09/26
التصويت كمفيد (6) المشاهدات (8) المتابعون (9) الإجابات (9) بلّغ عن السؤال
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Kamran Anjum
من قبل Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh

Right answer is Option B) Depreciation

Abdul Wahab
من قبل Abdul Wahab , Credit Controller , Takween Advanced Industries

-B-

Divyesh Patel
من قبل Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

(b) Depreciation

Ahmed Abd Alwahab Awad Ibrahim
من قبل Ahmed Abd Alwahab Awad Ibrahim , Chief Accounting , ICCDP

(b) Depreciation

Because company already has idle capacity There is no additional or new assets

Anayatullah Tahir
من قبل Anayatullah Tahir , Finance Manager , Etqan Projects

2nd Option, because Depreciation is not directly related to the production numbers.

ABDUL MAJEED KOOTHRADAN
من قبل ABDUL MAJEED KOOTHRADAN , Audit Manager , TS Meera Associates Chartered Accountants

Option B, (except the case of Depreciation on basis of usage.)

Khaled Abdelrehim ACCA DipIFR CMA
من قبل Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

Answer B - Depreciation

georgei assi
من قبل georgei assi , مدير حسابات , المجموعة السورية

Answer b is the correct answer

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