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Which costs are relevant and which are not relevant in the

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Reference no: EM13592511

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

  • alternative Q alternative R
  • Supplies costs 65,000 65,000
  • power cost 30,000 29,000
  • inspection cost 18,000 29,000
  • assembly cost 33,000 33,000

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?

Reference no: EM13592511

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