Nicklin Corporation is considering two alternatives, code-named M and N. Costs a

Question

Nicklin Corporation is considering two alternatives, code-named M and N. Costs associated with the alternatives are listed below Alternative M Alternative N Supplies costs Power costs Inspection costs Assembly costs S 77,000$ 68,000 $ 49,000$49,000 $ 29,000 $ 42,000$ 31,000 $ 44.000 Required a. Which costs are relevant and which are not relevant in the choice between these two alternatives? Supplies costs Power costs Inspection costs Assembly costs b. What is the differential cost between Alternative M and Alternative N? (Negative amount should be indicated by a minus sign.) ifferential

Explanation / Answer

Relevant costs are those costs that influence decision making process for the company and these costs differ between alternatives.On the other hand irrelevant costs are the same for each alternative and hence do not affect decision making process.

b.

Supplies cost Relevant costs Power cost Irrelevant costs Inspection costs Relevant costs Assembly costs Relevant costs

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.