Accounting · Relevant Costing (Staff Costs)
Ham Co. is planning to use three staff members for a special project. The full employment costs for these three staff for the project life would be $15,600. The cost of hiring agency staff to cover their normal work would be $21,400. Alternatively, three regular staff could cover their work, and new additional staff would be hired to cover for those regular staff at a cost of $18,000. What is the relevant cost of staff to be included in the project profitability calculation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$21,400
- 2$18,000✓
- 3$15,600
- 4$5,800
Correct answer
$18,000
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