Two alternatives, code-named X and Y, are under consideration at Afalava Corporation. Costs associated with the alternatives are listed below.
-Are the materials costs and processing costs relevant in the choice between alternatives X and Y? (Ignore the equipment rental and occupancy costs in this question. )
A)Only materials costs are relevant
B)Only processing costs are relevant
C)Both materials costs and processing costs are relevant
D)Neither materials costs nor processing costs are relevant

Question

Two alternatives, code-named X and Y, are under consideration at Afalava Corporation. Costs associated with the alternatives are listed below. 
-Are the materials costs and processing costs relevant in the choice between alternatives X and Y? (Ignore the equipment rental and occupancy costs in this question. )
A)Only materials costs are relevant 
B)Only processing costs are relevant 
C)Both materials costs and processing costs are relevant 
D)Neither materials costs nor processing costs are relevant

Quizplus · Accepted Answer

The materials costs are not relevant because they do not differ between the alternatives.The processing costs are relevant because they do differ between the alternatives.

Two Alternatives, Code-Named X and Y, Are Under Consideration at Afalava