Question

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

Answer 1

The answer is given below;

Step-by-step 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.