Decision Making and Relevant Costs at Bugatti

Requirements:

1. Use relevant costing techniques at Bugatti to make a decision on sourcing materials for its hypercar production.

Option	Relevant Costs ($)
Domestic Sourcing	10,000,000
International Sourcing	8,000,000

• Analyze the relevant costs and benefits of sourcing materials domestically versus internationally for Bugatti's hypercar manufacturing.
• Evaluate the qualitative factors that Bugatti should consider when making the sourcing decision.
• Recommend the most cost-effective option based on relevant costing analysis for Bugatti's material sourcing strategy.