During Ramadhan, Miss Lenny sells varieties of Malay’s traditional food for iftar. She cooks curry puff, badak guling, trifle and sagu. Some of the ingredients for cooking such as flour, varieties of sugar and mixed fruits she bought from Speedmart. She also bought packaging paper from Anis Bakery. While other ingredients such as coconut and milk she bought from a nearby wet market. She uses cooking utensils that she has bought a few years ago at a total cost of RM1,000. She drives her car and incurs petrol costs RM20 per day for the trip to Pasar Ramadhan and to buy cooking materials. Road tax and insurance for her car amounted RM950 will be paid every year in December. Identify FOUR (4) irrelevant costs and ONE (1) relevant cost from the above scenario

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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During Ramadhan, Miss Lenny sells varieties of Malay’s traditional food for iftar. She cooks curry puff, badak guling, trifle and sagu. Some of the ingredients for cooking such as flour, varieties of sugar and mixed fruits she bought from Speedmart. She also bought packaging paper from Anis Bakery. While other ingredients such as coconut and milk she bought from a nearby wet market. She uses cooking utensils that she has bought a few years ago at a total cost of RM1,000. She drives her car and incurs petrol costs RM20 per day for the trip to Pasar Ramadhan and to buy cooking materials. Road tax and insurance for her car amounted RM950 will be paid every year in December.

Identify FOUR (4) irrelevant costs and ONE (1) relevant cost from the above scenario

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