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Commerce · Q365

Costing

Graduate and Post Graduate · Commerce · question 365

Q365

Relevant ordering costs are added into relevant carrying costs to calculate

A.
relevant total costs
Answer
B.
contribution costs
C.
throughput costs
D.
optimized costs

Answer: Option A

Solution

Answer: Option A
Solution:
Relevant ordering costs are added into relevant carrying costs to calculate relevant total costs. Relevant cost is a managerial accounting term that describes avoidable costs that are incurred when making business decisions.