.What are the Characteristics of Flexible Budgets? Give an example of Saudi Company that prepare them[1 Mark]

Q2. Karim Corporation is considering two alternatives that are code-named A and B. Costs associated with the alternatives are listed below:

Alternative A

Alternative B

Supplies costs

SAR 33 000

SAR 33 000

Assembly costs

SAR 48 000

SAR 51 000

Power costs

SAR 32 000

SAR 22 000

Inspection costs

SAR 11 000

SAR 27 000

Required:

a. Which costs are relevant and which are not relevant in the choice between these two alternatives? [0.5 Mark]

b. What is the differential cost between the two alternatives?