Managerial accounting question:

Two alternatives,1 and 2, are being considered by Dougle Corporation. Costs associated with the alternatives are listed below.

	Alternative 1	Alternative 2
Materials costs	$ 59,000	$ 59,000
Processing costs	$ 45,000	$ 40,000
Equipment costs	$ 17,000	$ 17,000
Occupancy costs	$ 24,000	$ 24,000

Which of the costs are relevant when choosing between alternatives 1 and 2?

a) Materials and Processing costs.

b)Materials costs only.

c)Processing costs only.

d)Materials and Occupancy costs.