Two alternatives, code-named X and Y, are under consideration at Donat 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) Both materials costs and processing costs are relevant
B) Only materials costs are relevant
C) Only 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 Donat 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) Both materials costs and processing costs are relevant 
B) Only materials costs are relevant 
C) Only processing costs are relevant 
D) Neither materials costs nor processing costs are relevant

Quizplus · Accepted Answer

Both materials costs and processing costs are relevant in the choice between alternatives X and Y, as they directly impact the overall cost of each alternative. Therefore, both factors need to be taken into consideration when making a decision between the two alternatives.

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