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Q1) Saalfrank Corp. is thinking of two alternatives which are code-named M and N. Costs associated with  alternatives are given below:

  Alternative M Alternative N
Supplies cost $43,000 $53,000
Assembly cost $43,000 $56,000
Power cost $26,000 $26,000
Inspection cost $19,000 $26,000

Which costs are appropriate and which are not appropriate in choice between these two alternatives?

What is differential cost between two alternatives?

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  • Category:- Accounting Basics
  • Reference No.:- M918107

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