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<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>
Right answer is Option B) Depreciation
-B-
(b) Depreciation
(b) Depreciation
Because company already has idle capacity There is no additional or new assets
2nd Option, because Depreciation is not directly related to the production numbers.
Option B, (except the case of Depreciation on basis of usage.)
Answer B - Depreciation
Answer b is the correct answer
