Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below Supplies costs Power costs Inspection costs Assembly costs 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? a. Supplies costs a. Power costs Alternative Q Alternative R $77,000 $77,000 $ 35,700 $ 34,200 $ 31,000 $ 34,200 $ 38,000 $ 38,000 a. Inspection costs a. Assembly costs b. Differential cost

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below
Alternative Q Alternative R
$ 77,000
$ 35,700
$ 31,000
$ 38,000
Supplies costs
Power costs
Inspection costs
Assembly costs
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?
a. Supplies costs
a. Power costs
$ 77,000
$ 34,200
$ 34,200
$ 38,000
a. Inspection costs
a. Assembly costs
b. Differential cost
Transcribed Image Text:Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below Alternative Q Alternative R $ 77,000 $ 35,700 $ 31,000 $ 38,000 Supplies costs Power costs Inspection costs Assembly costs 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? a. Supplies costs a. Power costs $ 77,000 $ 34,200 $ 34,200 $ 38,000 a. Inspection costs a. Assembly costs b. Differential cost
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