a. Calculate both the product cost (using standard accounting practices) and the relevant cost for this custom job
b. What is the lowest price at which the tender should be submitted assuming we want to make a profit of £200? What will be the impact of such a price on profits reported in the management profits report? What are the opportunity costs of not undertaking this job?
c. Compare and contrast historical accounting information for the calculation of product costs with the notion of relevant costs. What are the limitations of both methods?