Cougar Company is trying to decide which product to manufacture.Expected direct materials costs are $4 for each product.In choosing between the two products,the direct materials costs are ________.
A)relevant because it is an expected future cost
B)relevant because it is a product cost
C)irrelevant because it is an estimated cost
D)irrelevant because it does not differ between the two alternatives

Question

Quizplus · Accepted Answer

The direct materials costs are irrelevant because they do not differ between the two alternatives, making them non-influential in the decision-making process.

Cougar Company Is Trying to Decide Which Product to Manufacture