Writing Essays. by Eleanor Wakefield. There are several vital elements to any successful college essay. This handout. will define those elements and show you how to put them together using an. outline. Following this format will help you keep your thoughts organized and. get your essay underway.
A relevant cost (also called avoidable cost or differential cost) is a cost that differs between alternatives being considered. In order for a cost to be a relevant cost it must be: 1  Future. 2  Cash Flow.  Incremental.
e. Make or Buy (sourcing decision) The relevant fixed overhead is $12 per unit ($20 Ã 60%) because that amount could be avoided by buying the part from McMillan. All variable costs are relevant ($75 = $35 + $16 + $24). The relevant cost per unit is there $87 ($75 + $12). Eggers should make the part.The cost to make, $87, is less than the cost to buy, $90; there is a $3 per-unit savings to make.he relevant cost per unit is there $87 ($75 + $12). Eggers should make the part. The cost to make, $87, is less than the cost to buy, $90; there is a $3 per-unit savings to make.