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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