2011年ACCA考试《F5业绩管理》讲义（56）
3.2 One-off contracts When a business is presented with the opportunity of a one-off contract it should apply relevant costing principles, i.e. it should identify the incremental cash flows associated with the project.Illustration 5 – Applying relevant costing principles
On 1 January a company prepared the following budget for a one-off contract.
$
Research and development50,000
Material15,000
Machinery5,000
Labour35,000
Allocated fixed overhead25,000
130,000
Budgeted selling price200,000
Profit70,000
In march, having spent $30,000 of the research costs and having contracted for the machinery, the company realises that the completed contract would be sold for only $100,000.
Required:
Determine whether the project should be continued.
Solution
The relevant cost of the project is as follows.
$
R&D (the part not yet spent)(20,000)
Material(15,000)
Machinery (a committed cost)-
Labour(35,000)
Allocated overhead ( a common cost) -
Net relevant cost(70,000)
Revenue100,000
Net benefit30,000
The project should be continued since the potential proceeds ($100,000) exceed the relevant cost ($70,000).
Test your understanding 7来自www.Examw.com
A research contract, which to date has cost the company $150,000, is under review.
If the contract is allowed to proceed:
§ it will be completed in approximately one year
§ the results would then be sold to a government agency for $300,000.
Shown below are the additional expenses which the managing director estimates will be necessary to complete the work.
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