Solution-Are the materials costs and processing costs

Are the materials costs and processing costs relevant

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Reference no: EM131867045

Question - Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below:

Materials costs (A) $35,000 (B)$51,000

Processing costs (A)$41,000 (B)$41,000

Equipment rental (A)$10,000 (B)$28,000

Occupancy costs (A)$19,000 (B)$29,000

1. Are the materials costs and processing costs relevant in the choice between alternatives A and B? (Ignore the equipment rental and occupancy costs in this question.)

Neither are relevant

Only processing costs are relevant

Only materials costs are relevant

Both are relevant

2. What is the differential cost of Alternative B over Alternative A, including all the relevant costs?

Reference no: EM131867045

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Are the materials costs and processing costs relevant

Reference no: EM131867045

Reference no: EM131867045

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