General Studies · Cost Accounting & Decision Making

The Fruit Company (F Co) currently grows fruit which customers pick themselves from the fields before paying. F Co is concerned that a large number of customers are eating some of the fruit whilst picking it and are therefore not paying for all of it. As a result, it has to decide whether to hire staff to pick and package the fruit instead. Which THREE of the following are relevant to the decision? A. The total sales value of the fruit currently picked and paid for by customers B. The cost of growing the fruit C. The cost of hiring staff to pick and package the fruit D. The total sales value of the fruit if it is picked and packaged by staff instead E. Time spent by existing managers, who are on fixed salaries, supervising the staff F. The cost of baskets used by customers and staff