Exit CIMA-P1 P1 - Management Accounting
Question 5 of 5
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Q5 Single choice

A company is considering the use of Material V in a special order.

The material is used regularly and a sufficient quantity of the material is in inventory.

It could also be sold, at just below the current market price, to a local competitor.

What is the relevant cost of Material V to be used in the special contract?

  • A

    The replacement cost of the material.

  • B

    The resale value of the material.

  • C

    The historic cost of the material in inventory.

  • D

    Nil