Lecture 5 - Relevant Costing

Why we should use lifecycle costing for new product/new project?

What environment costing method is used regarding the case: A juice factory processes 1,000 kg of fresh oranges (input) to produce 600 litres of orange juice (output). The remaining 400 kg, consisting of peels, seeds, and pulp, is considered residual waste.

In a paper manufacturing company, waste management is identified as an environmental activity, and an activity cost centre is created for it. The costs related to waste disposal and recycling are allocated to this cost centre and then absorbed into the overall product costs based on the amount of waste generated per production batch. What method is applied for the environment costing in this case?

Given the machinery user costs case, how much should be recorded as the relevant costs?

Given the relevant cost of labour case, how much should be recorded for the relevant labour costs?

Given the material costs cases, what should be the relevant costs of Material A

What should be the relevant costs of Material B

What should be the relevant costs of Material C

What should be the relevant costs for material D

Regarding the opportunity costs case, how much is the relevant costs (opportunity costs)?