Page 51 - MAC4861_2 Costing class slides part 2
P. 51

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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