Ouzts Corporation is considering Alternative A and Alternative B. Costs associated with the alternatives are listed below:

	Alternative A	Alternative B
Materials costs	$ 40,000	$ 56,000
Processing costs	$ 37,000	$ 37,000
Equipment rental	$ 13,000	$ 13,000
Occupancy costs	$ 15,000	$ 22,000

Are the materials costs and processing costs relevant in the choice between alternatives A and B?

Multiple Choice

Both materials costs and processing costs are relevant

Neither materials costs nor processing costs are relevant

Only processing costs are relevant

Only materials costs are relevant