Two Alternatives,identified X and Y,are Under Consideration at Hayden Corporation

question 74

Multiple Choice

Two alternatives,identified X and Y,are under consideration at Hayden Corporation.Costs associated with the alternatives are listed below. $$\begin{array} { | l | r | r | } \hline & \text { Altemative } \times & \text { Altemative } \mathrm { Y } \\\hline \text { Material costs } & \$ 44,000 & \$ 56,000 \\\hline \text { Processing costs } & 37,000 & 59,000 \\\hline \text { Building costs } & 14,000 & 14,000 \\\hline \text { Equipment rental } & 11,000 & 11,000 \\\hline\end{array}$$
What is the differential cost of Alternative Y over Alternative X?

• A) $140,000
• B) $123,000
• C) $34,000
• D) $106,000

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Definitions:

Generation

A group of individuals born and living around the same time, typically considered to span about 20-30 years.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Culture

The behavior patterns, beliefs, and all other products of a group that are passed on from generation to generation.

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Pertaining to cultural values that emphasize the importance of the group over individual achievements or desires.