Scherer Corporation Is Preparing a Bid for a Special Order

question 44

Multiple Choice

Scherer Corporation is preparing a bid for a special order that would require 720 liters of material U48N.The company already has 560 liters of this raw material in stock that originally cost $6.30 per liter.Material U48N is used in the company's main product and is replenished on a periodic basis.The resale value of the existing stock of the material is $5.80 per liter.New stocks of the material can be readily purchased for $6.65 per liter.What is the relevant cost of the 720 liters of the raw material when deciding how much to bid on the special order? (CIMA adapted)

• A)$4,592.
• B)$4,788.
• C)$4,456.
• D)$4,176.

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Definitions:

Temporalis

A muscle located on the side of the skull, involved in chewing and moving the jaw.

Sternocleidomastoid

A major muscle in the neck that extends from the sternum and clavicle to the mastoid process of the temporal bone of the skull, involved in rotating and flexing the neck.

Latissimus Dorsi

A large, flat muscle on the back that stretches to the sides, behind the arm, and is involved in the movement of the shoulders and arms.

Insertion

Insertion refers to the placement of an object or substance into a body part or into a device, often used in medical procedures or mechanical processes.