Two alternatives,identified A and B,are under consideration at Hayden Corporation.Costs associated with the alternatives are listed below. Are the materials costs and processing costs differential in the choice between alternatives A and B? (Ignore the building costs and equipment rental in this question. )

Question

Two alternatives,identified A and B,are under consideration at Hayden Corporation.Costs associated with the alternatives are listed below.  Are the materials costs and processing costs differential in the choice between alternatives A and B? (Ignore the building costs and equipment rental in this question. )

Quizplus · Accepted Answer

Both materials costs and processing costs are differential between alternatives A and B. Specifically, alternative A has lower materials costs but higher processing costs, while alternative B has higher materials costs but lower processing costs. Therefore, the choice between the alternatives will depend on which cost element is more important to the company's decision makers.

Two Alternatives,identified a and B,are Under Consideration at Hayden Corporation