Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below;

Required:

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

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

Transcribed Image Text:

Supplies costs Power costs Inspection costs Assembly costs Alternative Q $89,000 $46,000 $43,000 $53,000 Alternative R $89,000 $44,600 $44,600 $53,000 a. Supplies costs Power costs Inspection costs Assembly costs b. Differential cost Supplies costs Power costs Inspection costs Assembly costs Alternative Q $89,000 $46,000 $43,000 $53,000 Alternative R $89,000 $44,600 $44,600 $53,000 a. Supplies costs Power costs Inspection costs Assembly costs b. Differential cost

Answer rating: 100% (QA)

a Supplies costs Not relevant ... View the full answer