10. Nesmith Corporation is considering two alternatives: A and B. Costs associat

Question

10. Nesmith Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below Alternative A $33,000 $38,000 $11,000 $18,000 Alternative B $53,000 $57,000 $11,000 29,000 Processing costs... Equipment renta 2 Occupancy costs 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) Both materials costs and processing costs are relevant B) Only materials costs are relevant C) Neither materials costs nor processing costs are relevant D) Only processing costs are relevant

Explanation / Answer

Are the materials costs and processing costs relevant in the choice between alternatives A and B?

Ans: A.

Both materials costs and processing costs are relevant.

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