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What is the differential cost between the two alternatives

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Question: 1. What are the Characteristics of Flexible Budgets? Give an example of Saudi Company that prepare them [1 Mark]

2. Karim Corporation is considering two alternatives that are code-named A and B. Costs associated with the alternatives are listed below:

                              Alternative A               Alternative B

Supplies costs          SAR 33 000                SAR 33 000

Assembly costs         SAR 48 000                SAR 51 000

Power costs              SAR 32 000                SAR 22 000

Inspection costs        SAR 11 000                SAR 27 000

Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives? [0.5 Mark]

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

Reference no: EM132764683

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