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Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R $74,000 Supplies costs $74,000
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R $74,000 Supplies costs $74,000 $33,400 $33,400 $39,000 Power costs $34,200 $27,000 $39,000 Inspection costs Assembly costs 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? Relevant a. Supplies costs Not relevant Power costs Inspection costs Relevant Assembly costs Relevant b. Differential cost
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