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Question One: (10 marks) (A1, D1) Part A: (5 marks) A component part should be...

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Accounting

Question One: (10 marks) (A1, D1)

Part A: (5 marks)

A component part should be purchased whenever the purchase price is less than its total manufacturing cost per unit. Do you agree? Why?

Part B: (5 marks)

Relevant costs for pricing decisions are full costs of the product. Do you agree? Explain.

Question One: (10 marks) (A1, D1)

Part A: (5 marks)

A component part should be purchased whenever the purchase price is less than its total manufacturing cost per unit. Do you agree? Why?

Part B: (5 marks)

Relevant costs for pricing decisions are full costs of the product. Do you agree? Explain.

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