Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R Supplies costs $ 90,000 $ 90,000 Power costs $ 48,000 $ 46,900 Inspection costs $ 45,000 $ 46,900 Assembly costs $ 54,000 $ 54,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives

Question

Emma Wilkerson

Business

28 October, 14:50

Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R Supplies costs $ 90,000 $ 90,000 Power costs $ 48,000 $ 46,900 Inspection costs $ 45,000 $ 46,900 Assembly costs $ 54,000 $ 54,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives

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Answers (1)

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Izabelle Perkins · Answer 1

The answer is given below;

Explanation:

The supplies costs and power costs are relevant for both Q & R, where as the inspection costs and assembly costs are not relevant as the product can be manufactured even without incurring these costs.