Pear 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

Only processing costs are relevant

Only materials costs are relevant

Both materials costs and processing costs are relevant

Neither materials costs nor processing costs are relevant