# Couch Company can produce either product A or product B - 9768

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## umer

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• Posted on: Wed 16 May, 2012
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Request Description

Couch Company can produce either product A or product B. If Couch Company produces product A, expected direct material cost would be \$24,000. If Couch Company produces product B, expected direct material cost would be \$24,000. In choosing between these alternatives, the \$24,000 direct material cost is _____.

a.     relevant because it is an expected future cost

b.     relevant because it is a product cost

c.     irrelevant because it is an estimated cost

d.     irrelevant because it does not differ between alternatives

Solution Description

Couch Company can produce either product A or product B. If Couch Company produces product A, expected direct material cost would be \$24,000. If Couch Company produces p