Two Alternatives, Code-Named X and Y, Are Under Consideration at Donat

question 81

Multiple Choice

Two alternatives, code-named X and Y, are under consideration at Donat Corporation. Costs associated with the alternatives are listed below.
-Are the materials costs and processing costs relevant in the choice between alternatives X and Y? (Ignore the equipment rental and occupancy costs in this question.)

• A) Both materials costs and processing costs are relevant
• B) Only materials costs are relevant
• C) Only processing costs are relevant
• D) Neither materials costs nor processing costs are relevant

---

Definitions:

Quantitative Data

This refers to numerical data that can be measured and quantified, representing quantities, amounts, or levels.

Ordinal Data

Data that can be categorized and ranked; however, the intervals between the categories are not necessarily equal.

Nominal Variable

A categorical variable for which different values represent different categories without any intrinsic ranking order.

Interval Data

A type of numerical data involving measurements where both the order and the exact differences between the measurements matter, but there is no true zero point.