Question
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R Supplies costs $ 94,000
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below:
| Alternative Q | Alternative R | ||||||
| Supplies costs | $ | 94,000 | $ | 94,000 | |||
| Power costs | $ | 65,000 | $ | 64,100 | |||
| Inspection costs | $ | 51,000 | $ | 64,100 | |||
| Assembly costs | $ | 59,000 | $ | 59,000 | |||
Required:
a. Which costs are relevant and which are not relevant in the choice between these two alternatives?
b. What is the differential cost between the two alternatives?
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below:
| Alternative Q | Alternative R | ||||||
| Supplies costs | $ | 94,000 | $ | 94,000 | |||
| Power costs | $ | 65,000 | $ | 64,100 | |||
| Inspection costs | $ | 51,000 | $ | 64,100 | |||
| Assembly costs | $ | 59,000 | $ | 59,000 | |||
Required:
a. Which costs are relevant and which are not relevant in the choice between these two alternatives?
b. What is the differential cost between the two alternatives?
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Performance Auditing
Authors: Shrivastava A.
1st Edition
8131316254, 978-8131316252
