A manufacturing company used raw material AA as the basic material. The cost of the material is

Question:

A manufacturing company used raw material AA’ as the basic material. The cost of the material is Rs.50 per kg and the input—output ratio is 110%. Due to a sudden shortage in the market the material becomes non-available, and the unit is considering the use of one of the following substitutes available:

image text in transcribed

You are required to recommend which of the above substitutes is to be used. Also indicate additional cost to be incurred.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Accounting

ISBN: 9788131732076

1st Edition

Authors: V. Rajasekaran, R. Lalitha

Question Posted: