Over-land’s management is considering the proposal from FHP.
Relevant Costs for Decision Making
Over-land’s management is considering the proposal from FHP. There are many issues involving strategy, cost, risk, and capacity. Prepare a recommendation to management.
Variable expenses are relevant whereas the fixed costs do not hold any form of relevance for Overland. Fixed costs are necessary in the day to day operations of the company. Fixed costs remain constant even when van loads are added or not……………………