Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R Supplies costs $ 90,000 $ 90,000 Power costs $ 48,000 $ 46,900 Inspection costs $ 45,000 $ 46,900 Assembly costs $ 54,000 $ 54,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives

Question

Business

Macey Macdonald

24 July, 06:30

Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R Supplies costs $ 90,000 $ 90,000 Power costs $ 48,000 $ 46,900 Inspection costs $ 45,000 $ 46,900 Assembly costs $ 54,000 $ 54,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives

+5

Answers (1)

Know the Answer?

Irene Frank · Answer 1

The answer is given below;

Explanation:

The supplies costs and power costs are relevant for both Q & R, where as the inspection costs and assembly costs are not relevant as the product can be manufactured even without incurring these costs.