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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

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  1. 24 July, 10:08
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    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.
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