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Author Question: Management is considering two alternatives. Alternative A has projected revenue per year of $100,000 ... (Read 85 times)

RODY.ELKHALIL

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on: Mar 6, 2021
Management is considering two alternatives.  Alternative A has projected revenue per year of $100,000 and costs of  $70,000 while Alternative B has revenue of $100,000 and costs of $60,000.  Both projects require an initial investment of $250,000 of which $75,000 has already been set aside and will be used as a down payment on the project that is chosen. There are also other qualitative factors that management must consider before making a final choice. Which of the following statements is correct about relevant costs and relevant revenues.
◦ The sunk cost of $75,000 is relevant
◦ The projected revenues are relevant to the decision
◦ The initial investment of $250,000, the projected revenues, and the projected costs are all relevant
◦ The only relevant item are the costs as they differ between alternatives
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by RODY.ELKHALIL on Mar 6, 2021

SamMuagrove

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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RODY.ELKHALIL

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

bigsis44

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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