Question
Cardon, Inc. is considering two options, X and Y. Costs associated with each option are listed below: Option X Option Y Supplies costs $ 87,000
Cardon, Inc. is considering two options, X and Y. Costs associated with each option are listed below:
| Option X | Option Y | ||||||
| Supplies costs | $ | 87,000 | $ | 87,000 | |||
| Power costs | $ | 45,000 | $ | 44,100 | |||
| Inspection costs | $ | 41,000 | $ | 44,100 | |||
| Assembly costs | $ | 51,000 | $ | 51,000 | |||
Required:
Which costs are relevant and which are not relevant in the choice between these two options?
. What is the differential cost between the two options?
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The Accounting And Financial Audit
Authors: Landry Kouamé
1st Edition
620430481X, 978-6204304816
