Which of the following would be relevant in the decision to sell or throw out obsolete inventory?

Direct material cost assigned to the inventory

Fixed overhead cost assigned to the inventory

A) Yes Yes

B) Yes No

C) No Yes

D) No No

Question

Business

Baron Huff

3 July, 04:10

Which of the following would be relevant in the decision to sell or throw out obsolete inventory?

Direct material cost assigned to the inventory

Fixed overhead cost assigned to the inventory

A) Yes Yes

B) Yes No

C) No Yes

D) No No

+3

Answers (1)

Know the Answer?

Kaylah Cruz · Answer 1

D) No No

Explanation:

Direct material cost and fixed overhead cost assigned to inventory, both are irrelevant in the decision to sell or throw out obsolete inventory because these costs are already incurred and treated as sunk cost.

Which of the following would be relevant in the decision to sell or throw out obsolete inventory?Direct material cost assigned to the inventoryFixed overhead cost assigned to the inventoryA) Yes YesB) Yes NoC) No YesD) No No

Which of the following would be relevant in the decision to sell or throw out obsolete inventory?

Direct material cost assigned to the inventory

Fixed overhead cost assigned to the inventory

A) Yes Yes

B) Yes No

C) No Yes

D) No No