Question
17. Nicklin Corporation is considering two alternatives, code-named M and N. Costs associated with the alternatives are listed below: Alternative M Alternative N Supplies costs
| 17. Nicklin Corporation is considering two alternatives, code-named M and N. Costs associated with the alternatives are listed below: |
| Alternative M | Alternative N | |||
| Supplies costs | $ | 73,000 | $ | 66,000 |
| Power costs | $ | 47,000 | $ | 47,000 |
| Inspection costs | $ | 27,000 | $ | 41,000 |
| Assembly costs | $ | 40,000 | $ | 29,000 |
| Required: |
| a. | Which costs are relevant and which are not relevant in the choice between these two alternatives? |
| Supplies costs | (Click to select)Not relevantRelevant |
| Power costs | (Click to select)RelevantNot relevant |
| Inspection costs | (Click to select)RelevantNot relevant |
| Assembly costs | (Click to select)Not relevantRelevant |
| b. | What is the differential cost between Alternative M and Alternative N? (Enter your answer as a negative amount with a minus sign. Omit the "$" sign in your response.) |
| Differential cost | $ |
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Managements Reluctance In Implementing Audit Recommendations
Authors: Tariro Chinamasa
1st Edition
6139980240, 978-6139980246
