A company is considering the following alternatives: . $\begin{array}{lrr}&\text { Alternative 1 }&\text { Alternative 2 }\
\text { Revenues } & \$ 120,000 & \$ 120,000 \
\text { Variable costs } & 60,000 & 70,000 \
\text { Fixed costs } & 35,000 & 35,000
\end{array}$ Which of the following are relevant in choosing between the alternatives?
A) Variable costs
B) Revenues
C) Fixed costs
D) Variable costs and fixed costs

Question

Quizplus · Accepted Answer

Variable costs are relevant in choosing between the alternatives because they differ between Alternative 1 and Alternative 2, affecting the overall profitability of each option. Revenues and fixed costs are the same for both alternatives, so they do not impact the decision.

A Company Is Considering the Following Alternatives Which of the Following Are Relevant in Choosing Between the Alternative