San Juan, Inc -
If Only the Differential Costs of the Two Decisions

question 43

Multiple Choice

San Juan, Inc. is considering two alternatives: A and B. The costs associated with the alternatives are listed below:
$$\begin{array} { l c c } & \text { Alternative A } & \text { Alternative B } \\\text { Material costs } & \$ 35,000 & \$ 57,000 \\\text { Processing costs } & 36,000 & 57,000 \\\text { Building costs } & 12,00 C & 28,000 \\\text { Equipment rental } & 19,000 & 19,00 C\end{array}$$
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If only the differential costs of the two decisions are considered, the total differential costs of Alternative B is:

• A) $161,000.
• B) $131,500.
• C) $59,000.
• D) $102,000.

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Definitions:

Type B

describes personality traits characterized by a more relaxed, less overly competitive, and less stress-prone behavior compared to Type A personality.

Top Executives

Individuals who hold the highest-level management positions within an organization, responsible for making overarching decisions and setting strategic directions.

Functional Conflict

Constructive conflict.

Dysfunctional Conflict

Destructive conflict.