Question
The costs associated with the two alternatives, codenamed Q and R, evaluated by Albiston Corporation are listed below: Alternative Q Alternative R Material costs $
The costs associated with the two alternatives, codenamed Q and R, evaluated by Albiston Corporation are listed below:
| Alternative Q | Alternative R | ||||||
| Material costs | $ | 75,000 | $ | 75,000 | |||
| power costs | $ | 34,700 | $ | 33,900 | |||
| Inspection costs | $ | 28,000 | $ | 33,900 | |||
| Assembly costs | $ | 41,000 | $ | 41,000 | |||
Necessary:
a. Which costs are relevant and which are not relevant in choosing between these two alternatives?
b. What is the difference cost between the two alternatives?
Note: Below, list each cost in (a.) as relevant or not. List a numeric number for the differential cost for (b.)
a. Material costs
power costs
Inspection costs
Assembly costs
b. Different cost
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a Relevant costs Material costs Power costs Assembly costs Not releva...
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Management and Cost Accounting
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
4th edition
1405888202, 978-0273711490, 273711490, 978-1405888202
