A machine owned by a company has been idle for some months but could now be used on a one year contract which is under consideration. The net book value of the machine is $1,000. If not used on this contract, the machine could be sold now for a net amount of $1,200. After use on the contract, the machine would have no saleable value and the cost of disposing of it in one year's time would be $800. What is the total relevant cost of the machine to the contract?
A、$400
B、$800
C、$1,200
D、$2,000
A、$400
B、$800
C、$1,200
D、$2,000
【参考答案及解析】
$ Opportunity cost (net realisable value) 1,200 Cost of disposal in one year's time 800 Total relevant cost of machine 2,000
$ Opportunity cost (net realisable value) 1,200 Cost of disposal in one year's time 800 Total relevant cost of machine 2,000