. The relevant cost for IT Company to consider in making its decision is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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IT Company has 15,000 units in inventory that had a production cost of P3 per unit. These units cannot be sold through normal channels due to a significant technology change. These units could be reworked at a total cost of P23,000 and sold for P28,000. Another alternative is to sell the units to a junk dealer for P8,500. The relevant cost for IT Company to consider in making its decision is
A.P45,000 of original product costs
B.P23,000 for reworking the units
C.P68,000 for reworking the units
D.P28,000 for selling the units to the junk dealer
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