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 $ 86,000
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below:
| Alternative Q | Alternative R | ||||||
| Supplies costs | $ | 86,000 | $ | 86,000 | |||
| Power costs | $ | 42,000 | $ | 41,000 | |||
| Inspection costs | $ | 37,000 | $ | 41,000 | |||
| Assembly costs | $ | 45,000 | $ | 45,000 | |||
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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Issues In Management Accounting
Authors: David Ashton
2nd Edition
0131892509, 978-0131892507
