Page 10 - Manac Costing Test 2 class slides - 2. Decision Making
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DECISION MAKING
Basic example
Cost to drive to Durban:
Petrol R1 400
Tolls R300
Total cost R1 700
Cost to fly to Durban:
Air ticket R1 800
The car insurance is not relevant as it is not avoidable
(it is the same for both alternatives).
Difference in favour of driving R100.
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