Mccubbin Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below:
-Are the materials costs and processing costs relevant in the choice between alternatives A and B? (Ignore the equipment rental and occupancy costs in this question.)
A) Neither materials costs nor processing costs are relevant
B) Both materials costs and processing costs are relevant
C) Only processing costs are relevant
D) Only materials costs are relevant

Question

Mccubbin Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below: 
-Are the materials costs and processing costs relevant in the choice between alternatives A and B? (Ignore the equipment rental and occupancy costs in this question.)
A) Neither materials costs nor processing costs are relevant 
B) Both materials costs and processing costs are relevant 
C) Only processing costs are relevant 
D) Only materials costs are relevant

Quizplus · Accepted Answer

Both materials costs and processing costs are relevant in the choice between alternatives A and B. In order to make a decision, all relevant costs should be taken into consideration.

Mccubbin Corporation Is Considering Two Alternatives: a and B