Question: Two alternatives, AA and BB, are under consideration. Costs associated with the alternatives are listed below. Alternative AA Alternative BB Equipment Rental $ 41,000 $
Two alternatives, AA and BB, are under consideration. Costs associated with the alternatives are listed below.
|
| Alternative AA |
| Alternative BB | |||
| Equipment Rental | $ | 41,000 |
| $ | 41,000 |
|
| Processing Costs | $ | 55,000 |
| $ | 55,000 |
|
| Utilities | $ | 20,000 |
| $ | 17,000 |
|
| Insurance | $ | 4,000 |
| $ | 6,000 |
|
Which of the costs listed are relevant when making a choice between AA and BB?
| a | Insurance only | |
| b | Equipment Rental and Processing Costs | |
| c | Equipment Rental, Processing Costs and Insurance | |
| d | Utilities and Insurance |
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