Are the materials costs and processing costs relevant in the choice between alternatives A and B?

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

Materials Costs

The cost of raw materials used in the production of goods, a major component of the total manufacturing cost.

Processing Costs

Costs incurred in the course of converting raw materials into finished goods, including labor and overhead expenses.

Relevant

Pertains to information or costs that are pertinent to a particular decision, differing under the alternatives being considered.