alleryStart learning →Fulfilling a contract costs Rs 8 lakh; the penalty for not fulfilling it is Rs 4 lakh. The unavoidable cost is:
ARs 4 lakh
BRs 8 lakh
CRs 12 lakh
DRs 6 lakh
Answer & Solution
Correct answer: A. Rs 4 lakh
Unavoidable cost is the lower of the cost of fulfilling the contract and the penalty for failing to, which is Rs 4 lakh.
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